Let's hope you did not have any of the Enron stock. Maybe you know someone who did and lost everything, but you certainly might know several people who owned stock that lost almost everything. They probably aren't talking about it. According to Investor's Business Daily newspaper there are 1,387 companies that lost more than 90% of their value from the highest point during the last 5 years. That is almost as bad as Enron except the folks that own this junk have hopes that someday their stock will go back up....

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Caught in a whirlpool and being sucked under. No life vest or other device to save you. Gurgle, gurgle. Down you go. This last couple of weeks in the stock market kinda feels like that whirlpool when you look at your financial statements. Of course, your broker will tell you this is a "normal correction and it gives you a chance to buy more so you can dollar cost average. He could be right about this being a correction, but dollar cost averaging down is 100% wrong. The proper way to average into a financial holding is buy more as it goes up in value, never down....

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The big bad bear is stirring again. So far he has stretched, yawned and peaked out of his cave. After his almost year-long nap he is hungry. A nice big steak would hit the spot. That steak comes from cattle and not too far from his den there is a fat complacent bull munching in the pasture. He has his tail towards the bear and Mr. Bear remembers that 3 years ago he walked up to another bull and bit him in the backside. It looks like he can do it again. We know who bull and bear really are. It seems that almost everyone is bullish and thinks we are in another bull market like the one in 1999 where all investors thought they were geniuses....

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It is difficult to make money in a bull market, but what do you do when you are in a bear market? In what direction should you go not only to make money but to protect what you have from loss? Almost immediately investors think what should I buy that will help me reach my financial goals? This answer may not be the one you will like. It is really not important what you buy as long as you know the rules of the game - the stock market game. Rule One. You must know the general trend of the market....

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But when you don't know what you are doing stock trading can become a very difficult and life consuming business. You can lose a lot of money and time. Valuable time of your life. Stock trading can resemble the closest thing to a get-poor-fast system when you don't implement a proven stock trade strategy. Even when there are traders that can make more than $5000 on a single trade, it's not unusual for a novice stock trader to lose $1000 in less than 3 minutes from the comfort of his own home, or waste a lot of family time thinking about the stock he should trade for tomorrow "according to the charts and the stars" and other confusing technical analysis trading indicators....

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Checked your 401K lately? Going back to about a year ago many of these retirement accounts have shrunk by 30%, some even more. What Happened? You have been putting money in for years and your employer may have been contributing to your plan also. It is not supposed to get smaller. You are planning to spend that money some time in the future when you decide to quit working. Along with your Social Security payments you should be able to maintain your current lifestyle. But not if your 401K and IRA keep going down and down....

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The gleam and bright lights of Wall Street lure in many new investors each year, only to send them home crying to their friends and family. Why do so many people fail when it comes to the stock market? The reason is very simple: Hard work! Most people are looking for a quick buck or a fast path to riches. This is not the case when it comes to investing in individual stocks. If you wish to invest in stocks, treat it like a business, NOT A HOBBY. For example: A retail outfit can't make money if it doesn't have goods to sell, the same goes for investors, without cash, you can't invest....

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Did you run out to buy that duct tape yet? Don't forget the plastic sheeting, bottles of water, canned food and a couple of books to read. What are you waiting for? I know - things to get better so you can resume your normal life style. While you were waiting did you happen to notice what is happening to your investment portfolio, your retirement account? For the past 3 years it has needed duct tape and plastic sheeting to protect it from the poison gas coming from Wall Street. The gases, otherwise known as hot air, are the news flashes the brokers have been telling you....

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Has your broker been calling you recently with the "great opportunity" to get in on a new Initial Public Offering? With friends like that you don't need any enemies. I don't care how good this new stock offering sounds. The chances it will stay even or go up are about 1 in 3 and I don't want to play those odds with my money. Most of the new IPOs these days are from the technology sector. That is where the romance and big money has been, but the NASDAQ topped out on March 10 this year. It is a good idea to take a look at what has happened to these new offerings since that time....

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What a great statement! I just heard someone use it in the context of personal and financial success and it struck me as a brilliant summary of an issue we raise in the SMG Tutorials. Fear is a huge issue with a lot of traders. And interestingly, not just fear of failure but also fear of success. I think there are two keys to taming fear [you can never eliminate it so don't even try!]. The first and most critical is the one noted above - action. Action can tame fear in an instant. But it needs to be the right sort of action....

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