YOUR MONEY OR YOUR LIFE

After the most devastating crash in modern history from NAZ 5200 in March of 2000 to 1650, this Past April 2001, I would think there’s an enormous amount of pain and worry for all of you that stood there and did not know what to do to stem these horrific losses. We in the trading community call it, “The Deer in the headlights” effect. You stood by frozen to the floor, dumfounded and discouraged. Not knowing what to do, depending on your stock broker, those Wizards of Wall Street.

In fact some of the stories around current press accounts country wide have really hit home to me and you alike…People have suffered their worse nightmares by not knowing what to do or for that matter how to help themselves. In this article I am going to try to set you straight, because in my opinion Wall Street failed miserably in protecting your money. Here’s the number #1 question I want you to ask  your self…Did any stockbroker call you 3 months ago, 6 months ago, 9 months ago, 1 year ago or maybe even last week, and say to you point blank. ”SELL THAT STOCK”? Has anyone ever mentioned STOP LOSS ORDERS?

I’d bet dollars to doughnuts they did NOT! In fact because you trusted these so called “Guru’s of  Fall Street”, it cost you almost all your hard earned profits for all those “Good Years” of gains. And why may I ask would you decide to take all this sweat equity that you’ve earned and worked for all your life and entrusted it to others? Because your complacent and lazy? You tell me! Your either scared to death of the thought of trying to manage your own money, long term portfolios, IRA’s or 401K’s, or you just don’t give a damn. Which is it folks?

It is NOT too late to try and manage and recoup your losses. Yes you’ve suffered a great injustice, and of course you want to blame anyone and everyone for this devastation. But with all due respect, this is YOUR fault as much as it is your brokers. I am telling you right here and now. ‘TAKE CONTROL OF YOUR MONEY, AND DO IT TODAY”. I do not care how old or young you are at this juncture in time. You must act NOW! It’s too important for your own piece of mind, your own sanity, and your well being emotionally to just do NOTHING! Hey at this point what the hell do you have to lose, huh?

Think you can’t do this? I know you can. It’s just not that hard. It will take some time to learn what you can or cannot do to aid your current situation. But without a doubt you WILL do this, and you’ll do it smarter, better, and with pride in your work ethic and results. Remember how your started your first job? Then gradually getting more comfortable with gained knowledge as you matured thru your work environment and experience? This is no different. What with the Internet and computers you can become your own stockbroker analyst. You can learn to read charts and balances sheets. It’s just not that tough to do!

You will become your own money manager. Gather the family or some friends around to help you and them to this newfound source of strength. Pool your collective information to track and select stocks for your IRA’s and long term portfolio’s. You’ve heard about Investment clubs? Make your own Investment Club and do it TODAY! I mean right NOW!

Ok you ask, “but how can I do this I have no clue about the stock market, the up’s and downs, when to buy or sell, or even what to buy or sell? This article will set you on a path of financial freedom that will even surprise you. First thing to do is get a very good computer, high-speed Internet access using cable modem or dsl. Then make sure you have ALL the bells and whistles, lots of RAM, CPU, Hard drive etc, do not skimp on the important parts of your overall scheme of things to re capture your lost money. Do not be cheap. Next you’ll need to subscribe to several fee based services to aid you in learning how to trade the markets, and what stocks to select. There are many free sites that can help as well.

However there are 2 main points to aid you in your quest that must be addressed right here and now. Are you willing to take on this responsibility, to dedicate your self to this most important project of your life? And second do you have the guts and the emotional stability to stay the course and fight for your very existence right now. The emotional impact of losing 50-60-70-80% of your entire portfolio during this downturn will leave scars a mile wide in your psychie. You have to overcome those scars and move on. This is how your going to overcome the fear and greed the markets inject into your mind everyday.

First, ignore Wall Street completely. Stop listening to all those Wizards of Fall street you see paraded on every TV show ad infinitum spouting that same crap over and over again and again,, It’s called “IGNORE THE NOISE”. This is your first assignment. Forget everything you read, and half of what you see. Remember this, if it’s in print, it’s OLD NEWS folks, you’re too late to the party, it’s over. By Barron’s every Saturday or get it online. They take no prisoners. Yes this one you can read.

Second, it’s up to you to research any company your thinking about investing money in before you plunk down those hard earned dollars. One site that’s free and has a wealth of information is www.dailystocks.com. Another that’s fee based but very inexpensive is www.briefing.com, either one is all you’ll need to find out what product this company makes and what are it’s competitors, and where it stands in the scheme of things in the current market conditions.

Third, and this is the single most important aspect of your overall approach to investing. The technical picture of your stocks chart, and the technical picture of the sector this stock is in. Yes I want you to become a chartist. I want you to SEE to VISUALIZE what the chart is telling you. “Charts do not lie”, only people lie! We can see by studying and understanding these chart patterns what the technical picture of this stock looks like. Charts are pictures of buyers and seller, supply and demand. This single piece of information will save your lives, save your money, and yes save your sanity.

Once you become comfortable and begin to understand how to read a stock’s chart, we call this TA or technical analysis, by doing you’re own due diligence, what we call FA or fundamental analysis, then and only then will you begin to see the light. Yes folks, a light bulb will come on, and shine brightly as you actually SEE the patterns that TELL you there are buyers or sellers of your stock. You will be able to chart the DOW, the NAZDAQ, the indexes; anything and everything can be charted. It does not matter if it’s orange juice, bonds, interest rates, pork bellies, Microsoft, what ever, they are charted every single day there’s trading in the markets.

I do not care if you never even seen a stock chart before. Never thought about this before. Never talked about this with anyone before. This is your only chance of controlling your money yourself. I don’t care if your retired, widowed, never graduated high school, I am saying point blank you can and will learn this, and you’ll start today. I want everyone that reads this magazine to go to www.dorseywright.com, buy Tom Dorsey’s book, Point and Figure Charting, and sign up for the free trial offer. I do not have any affiliation with this company, but I do know and respect Tom Dorsey, and yes folks he knows me as well. I was lucky enough to meet Tom in the late 90’s at his seminar, and from that day onward I became a solid student of Point and Figure charting, and so will you. Look thru the P&F University step by step, it will jump-start you on your way to TA.

It’ simple and easy to learn. It’s a bunch of X’s and O’s that constantly form a chart pattern of your stocks that you can visualize and analyze all thru the year day by day. It will change your investing life, as you know it. The major problem with you and almost everyone that got slaughtered in the market this past year is because you trusted a stockbroker with your money, and you had no clue about the technical picture of the markets or your stocks. If you knew and understood TA, you could have saved your money. I would see parades of Investment clubs on CNBC telling the audience about their stock selections, it was one disastrous approach, because they had no idea of the stocks chart, the sector’s chart, and the technical picture of the DOW and NAZ. We were falling like a stone and they were buying? They had not one iota of a clue. I would go nuts as these groups of people did their FA or due diligence on the stocks, but had no earthly idea of the stocks current technical picture. Everyone out there must re visit their portfolios at least 4 times a year to sell the “dogs with fleas” and take that money and buy other stocks that have upside potential. By learning how to read charts you’ll be able to buy and sell when you’re supposed to.

Right now please take control of your assets. Do your homework, learn P&F charting, study earnings reports, read Barron’s, and above all, join together with family and friends and begin the healing process so desperately need at this moment in time. It’s you money or your life! If you have a question or comment please click on the link below.

Subscribe to our Newsletter