Cash is King / Cash Flow is Queen

By Al Thomas

Many people I have spoken with told me they lost money in their investment account in 2001 and 2008. They had their funds in "safe" mutual funds and ďmanagedĒ 401Ks and places like that.

My question is why is the money still there after all these years? When they look back on the amount originally deposited they have not made anything. Right, not anything.

Isn't it time to think about doing something different?

Wasn't it Einstein who said, "If you keep on doing the same thing over and over again and expect a different result you are either crazy or stupid".

When I first started to invest several (many) decades ago the first thing I learned was not to stay with a losing position. Get out! Take a small loss. Divorce yourself from a losing situation. Uhh, maybe I should not put it that way. But you understand.

As a trader I learned to put in a stop as soon as I put on the trade. I knew how much I was willing to lose if I was wrong. And I was wrong many times. However, when I was right I just moved a trailing stop loss up until the MARKET TOLD ME when to get out. You don't have to be a genius to do this.

Fund managers don't or won't do this. Some are not allowed to do it, but you can tell him what to do and he must obey your instructions.

During nasty bear markets money under the mattress makes more than almost any mutual fund. We have another crash coming in the next few months that could be worse than 2008.

There isnít space to give all the reasons I know this.

YOU must seek out a place your money is safe in an asset that will generate income. YOU, not your broker, have to find a Queen to go with your King. A good Queen is hard to find. I am constantly looking and helping many.

I expect the next major crash to start in the next few months and last a long time. Donít listen to the talking heads. Find something soon that will protect both your King and Queen.

Al Thomas was an exchange member and floor trader for 17 years. He started his brokerage company, WORLD TRADING GROUP, and in 8 years sold it with 35 branch offices. Al is author of 4 books on stock trading. IF IT DOESNíT GO UP, DONíT BUY IT! has been a best seller. His web site is Questions email Copyright Williamsburg Investment Co 2013