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How Do You Rank in The Investing Hierarchy?
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TWO FOR THE MONEY
TWO FOR THE MONEY
by Al Thomas
Look back over the years and try to remember
how many different stocks and mutual funds you
have owned. Suppose you had owned only 2
different equities during that entire time. One
when the market was going up and the other when
the market was going down.
And you always make money in both directions
probably doubling your money every 4 to 5 years.
You don’t believe it. Follow along and I will
prove YOU can do it.
You are not going to buy any stock; you are
not going to have any short positions. Both are too
volatile and shorting is too dangerous.
Furthermore, you are not going to change your
position more than once or twice a year and
there will be no commission paid. You will never
have any big losses and you will have some huge
winners. Forget about that myth of doing
research; you never need it. There will be times
you will have one position on for a couple of
years. Am I getting your attention?
You are going to buy hundreds of stocks that
have their prices smoothed out so you can sleep
at night. You buy them in mutual funds and the
funds you are buying do not have any commission
charge at all. You may want to open an account
with these fund families as they do not have
brokers who try to talk you in or out of your
buying or selling decisions. Of course, you can
do this with a discount broker. I have no
financial connection with these firms. One is
Rydex Investments and the second is DAL
Corporation. Both are on the Internet.
The mutual fund symbol for DAL is FUNDX
and for Rydex it is RYURX. These are seen on the
Internet at bigcharts.com or at your broker’s
web site. Run out a 5-year weekly chart and
Associated Websites
put
in a 40-week Moving Average. This is not
complicated. If you have a problem ask your
broker and print out both charts.
Look at the RYURX chart and you will see
that the price of the fund moves up through the
40-week moving average line on September 20,
2000. You buy this fund for $7.32. For the next
two years all your friends are losing their
money and your fund is erratically moving up and
up, When the price finally turns down below the
40-week moving average line you sell out on
April 21, 2003 at $11.88 for a profit of $4.56
per share or 62%. The stock market went in the
tank and you made money.
Now you are in cash in a money market account
and the next buy signal occurs a couple of weeks
later as that upward moving 40-week moving
average has started up and is penetrated by the
FUNDX mutual fund price on May 5, 2003 at
$22.88. As of this date (7/4/05) you are still
holding the shares now worth about $35.00 with
an unrealized profit of 53%. In less than 5
years you are now ahead more than 148% (not
counting taxes). If you have started with
$10,000 in 2000 you would now have $24,880.
If you have the discipline to follow this
simple method using just 2 funds that are only
invested one at a time you can become a
millionaire. These are two for the money.
Get ready – GO!
About the Author
Al Thomas' best selling book, "If It Doesn't
Go Up, Don't Buy It!" has helped thousands
of people make money and keep their profits with
his simple 2-step method. Read the first chapter
and receive his market letter for 3 months at
www.mutualfundmagic.com and discover why he's
the man that Wall Street does not want you to
know. Copyright 2005
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