…but not if you follow the method taught by Wall Street. They want to keep you confused so you will go to some broker who has been given
the Wall Street mantra of “buy, buy, buy, never sell”.

Advice from a broker is a eulogy for your
money. There are no customers’ yachts. Geeze,
Louise, am I being too hard on brokers and
financial planners (they are cut from the same
cloth)? Let’s do a little historical study.

Do you remember back in 2000 when you had
more money in your account than you do now? Uh oh,
touched a nerve, did I? Did your broker or
financial expert call you to tell you it was
time to sell or did he say you should buy more
because the stocks were cheaper? The latter was
the story from the big boys in New York. They
had stock to sell.

Did any broker or talking head on TV ever
say that “CASH IS A POSITION”? No! If any broker
ever said that to customers he would be fired
on the spot and the TV geniuses can’t because
the station advertisers would cancel. What
would ole “You can’t afford to be out of the
market” Chuck Schwab say? Brokerage companies
don’t make money when your funds are in a money
market account.

Then what should an investor do?

You must have an exit strategy. Anyone
can buy. The pitchmen can give you a thousand
reasons why to buy almost any equity. If you
look back in history it is always the financial
genius who sold that made the millions. You
don’t have to be Edward Lefevre, Gerald Loeb or
Richard Wyckoff to protect your hard earned
retirement money.

There are many good selling methods. On
the Internet go to Google or any search engine and
type in “stock market exit strategy”. There are
literally millions of web sites that have exit
strategies you can buy or get free. My word of
advice is to find a very simple one. Here is
where the KISS formula (Keep It Simple Stupid)
is important.

The final step is up to you. You must act
when the strategy says sell. When all is said and
done the key to success in the market is not
buying; it is selling. Do not give back your
profits and never allow big losses in your
account.
If your broker won’t work with you get another
broker and insist on limiting losses and
protecting profits on any position you may
have. That is the key to stock market success.

By: Al Thomas