Top 25 Growth Funds

On Monday, November 25, 2000 Investor's Business Daily listed on page B1 the Top 25 Growth Mutual Funds for the last 36 calendar months along with their public presentation for the twelvemonth 2000 to date. Only four showed a net income this twelvemonth of 21% and the other three had additions of 12%, 5%, and 5%. Fifteen had loss of from 10% to 28% and the other 6 were down slightly.

In the column next to them there is a listing of Top 25 Growth Funds for the past 3 calendar months for the twelvemonth 2000 to date. Only 2 had additions in terms for the twelvemonth 2000, 4 were even and all the remainder are showing losings for the year.

Now pay attention and believe about this adjacent sentence. Not one common monetary fund looks in both lists.

What is the significance of this? It very simply states you that bargain and throw is NOT the manner to do money with common funds.

I have got been sermon for old age to purchase only no-load common finances and throw them only as long as they are going up. When they halt going up you sell them (paying no commission) and happen another monetary fund that is going up as the topographic point to have got your money. In this current bear market the latter is hard to happen so what make you do? Put your money in a money market account and don't worry about the market going down and dragging your investing with it. Protect your capital!

Don't throw up your custody and state I can't make that because my broker states to "buy and throw - the market always come ups back". It is not his money. It is yours. You must be the 1 to originate the action to protect your capital. Brokers are not taught how to make this. I cognize - I used to have got a brokerage company.

Brokers have been smart adequate to learn, but taught all the incorrect things when it come ups to investment money. They claim you can't "time the market". wrong again. They never encourage you to put stop-loss orders so you won't lose all your money when you purchase a new stock or monetary fund and they never encourage you to utilize a trailing halt to protect the net income you have got got got got made.

I cognize there are people reading this column who have had pillory that have doubled, tripled, even more than and now have that same stock that is now selling for less than they bought it.. Where was your broker when all this was happening? If he is so smart why didn't he state you to sell at the top? This also uses to common funds.

What I am trying to get across is the simple message that you cannot bargain and hold. The "secret" every knowledgeable investor cognizes is to protect his capital first and then to protect his net income second.