Just Say NO to Your Stock Broker

We have all heard that slogan that started back when Nancy Reagan was in Washington. It was all about drugs. Now I want to remind you this can be your slogan when you get one of those telephone solicitations from a strange broker or even your own stockbroker who is acting a little strange. By that I mean he wants you to buy something.

Currently we are in an advancing stock market and we all hope it is going to go higher and higher. None of us, definitely including me, knows for sure where it will end up this year. Barron's, the weekly financial publication, has declared on their front page that "THE BULL IS BACK". They are also guessing. But it makes you feel good.

It makes me wonder when I study the fundamentals of the economy how they have come to this conclusion. Unemployment just had an uptick, most companies have yet to declare a dividend, the American dollar is losing value against many foreign currencies, manufacturing capacity utilization is still low and shows no signs of increasing, balance of trade is way out of whack and on and on.

Yes, there is some good news. Many companies are "beating the estimates". That means they are showing greater sales and profits than the brokers on Wall Street thought they would have. This is good press and usually has the effect of pushing stock prices higher. Many of these better profits are at the cost saving of laying off hundreds if not thousands of workers. And worst of all we don't know if these profits are true. Many are profoma meaning management is guessing.

If you are one of those people who hopes the market will go back up so you can get out "even" you are going to find that hope is the most expensive word in the dictionary. But what can you do about it? You are now being given the opportunity to save what is left of your retirement account. On any stock or mutual funds you have it would be a guess to say this is the place to sell. The smart thing is to listen to the market and do what it tells you.

When any equity is advancing you want to set up a trailing stop-loss order and move it up each week as your stock advances. Suppose you bought a stock at $100/share and watched it drop to $15. Pretty disheartening! It has now risen back up to $30 and your broker has assured you it will continue to rise. Maybe. But what if it doesn't?

Tell your broker to put in a stop-loss order about 10% below its current price. He will say you don't need to. This is where you just say 'NO'. Brokers don't watch any but their biggest and most active accounts. He must do as you ask according to regulations.

Put in a stop-loss order today. Protect your retirement account with a simple 'NO'.

INVESTMENT LETTER 3 months free at http://www.mutualfundmagic.com Copyright Albert W. Thomas All rights reserved. Author of "If It Doesn't Go Up, Don't Buy It!" Former 17-year exchange member, floor trader and brokerage company owner. Copyright 2002

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Google News Updated : Wed, 15 Oct 2008 17:58:10 GMT AMR Plan to Buy 787s Will Update Fleet, Bolster Boeing Program - Bloomberg KING5.com AMR Plan to Buy 787s Will Update Fleet, Bolster Boeing Program Bloomberg - 34 minutes ago By Susanna Ray and Mary Schlangenstein Oct. 15 (Bloomberg) -- AMR Corp.'s American Airlines said it may buy as many as 100 Boeing Co. AMR overcomes fuel costs to squeeze out small profit MarketWatch AMR 3Q Net Down 74%, To Buy Up To 100 Dreamliners CNNMoney.com Bizjournals.com - International Herald Tribune - Reuters - Flight International all 186 news articles Publ.Date : Wed, 15 Oct 2008 17:24:10 GMT Polls: McCain forced to play defense in some red states - CNN Telegraph.co.uk Polls: McCain forced to play defense in some red states CNN - 1 hour ago HEMPSTEAD, New York -- New polls out Wednesday in some crucial states that could decide the race for the White House suggest Sen. John McCain is having to defend himself in areas that once were reliably Republican. Union sues over policy banning political material at polling places DetNews.com Pollsters say odds of McCain winning election 'incredibly remote' guardian.co.uk Boston Globe - New York Magazine - San Francisco Chronicle - AFP all 989 news articles Publ.Date : Wed, 15 Oct 2008 16:34:00 GMT Migraine-hit Janet Jackson to resume US tour - Reuters CTV.ca Migraine-hit Janet Jackson to resume US tour Reuters - 55 minutes ago By Alex Dobuzinskis LOS ANGELES (Reuters) - A rare form of migraine forced Janet Jackson to cancel several dates on her Rock Witchu concert tour but she planned to return to the stage on Wednesday in Washington, DC, her manager said. Jackson was laid low by migraines BBC News Janet Jackson: She's Baaaaack* Washington Post Blogs The Associated Press - eFluxMedia - FOXNews - Access Hollywood all 846 news articles Publ.Date : Wed, 15 Oct 2008 17:02:47 GMT It's officially over: Madonna and Guy Ritchie are divorcing - New York Daily News ABC News It's officially over: Madonna and Guy Ritchie are divorcing New York Daily News - 3 hours ago BY LEO STANDORA Madonna's marriage to Guy Ritchie really is kaput , her rep told the Daily News on Wednesday. "Madonna and Guy Ritchie have agreed to divorce after 7 l/2 years of marrige," Liz Rosenberg said in a statement. Video: AP Exclusive: Madonna, Guy Ritchie to Divorce AssociatedPress It's Official: Madonna And Guy Ritchie To Divorce MTV.com BBC News - The Associated Press - The Gossip Girls - Just Jared all 1,632 news articles Publ.Date : Wed, 15 Oct 2008 14:56:56 GMT Jerry Jones exposed as gutless by Goodell's ruling - FOXSports.com TSN.ca Jerry Jones exposed as gutless by Goodell's ruling FOXSports.com - 1 hour ago by Ian O'Connor Ian O'Connor is the author of the New York Times bestseller "Arnie & Jack: Palmer, Nicklaus, and Golf's Greatest Rivalry," which Kirkus Reviews calls an "exemplary sports history. Video: Dallas' Adam Jones Suspended Again AssociatedPress Give Cowboys credit for not counting on Adam 'Pacman' Jones too much Dallas Morning News Los Angeles Times - New York Times - Fort Worth Star Telegram - Detroit Free Press all 1,080 news articles Publ.Date : Wed, 15 Oct 2008 16:52:30 GMT Obama’s spending how much on ads? - Christian Science Monitor Times Online Obama’s spending how much on ads? Christian Science Monitor - 1 hour ago By Jimmy Orr | 10.15.08 It’s been a week of non-surprises thus far. Dallas Cowboys cornerback Adam “Pacman” Jones has been suspended - again. McCain calls for 'voter fraud' inquiry Los Angeles Times A stolen election? Washington Times New York Times - Talk Radio News Service - Boston Globe - Seattle Times all 859 news articles Publ.Date : Wed, 15 Oct 2008 16:03:33 GMT Hurricane Omar gains strength and nears Puerto Rico - Reuters BBC News Hurricane Omar gains strength and nears Puerto Rico Reuters - 1 hour ago By John Marino SAN JUAN (Reuters) - Hurricane Omar strengthened on Wednesday as it bore down on Puerto Rico and the small islands of the northeastern Caribbean, and could be a "major" storm by the time it reaches them, US forecasters said. Omar on the Move. Paloma Next? Washington Post Blogs Hurricane Omar heads for US Caribbean islands The Associated Press BBC News - United Press International - USA Today - NBC 29 News all 2,556 news articles Publ.Date : Wed, 15 Oct 2008 16:12:36 GMT RSS Feed Reader Increase Website Traffic

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