Chapter 9 Odds, ends and profits. You're almost there! If you never learn a winning market tactic other than those I've already taught you, you're going to do very well in the market - as long as you faithfully apply my techniques | CHAPTER 9 ODDS ENDS AND PROFITS You re almost there If you never learn a winning market tactic other than those I ve already taught you you re going to do very well in the market as long as you faithfully apply my techniques. Now we re going to put the finishing touches on your education. To refer back to our tennis analogy you definitely know enough to be a winner but now you re going to learn the advanced techniques that can make you a champion. Now that you have mastered stage analysis be aware there are several other areas beside stocks where it can be applied very profitably FUN WITH FUNDS The first area to move into is that of mutual funds. This is a game that is both easy to master and has relatively low risk. Most investors view mutual funds as very long-term investments that should be bought and locked away through thick and thin. This is foolish for several reasons. First once you know how to time major moves why in the world would you want to sit through a Stage 4 bear trend Second more and more funds have gone the no-load or low-load Finally there are now many funds that offer both an No-load funds charge no fee for buying or selling the fund. It is purchased and sold at the net asset value. A low-load fund charges a relatively small fee usually in the 2 to 3 percent area. 310 Odds Ends and Profits 311 aggressive stock fund as well as a money market fund. To induce you to keep your money in their coffers they allow switching back and forth between funds usually with just a phone call. This immediately sets up the potential for a very profitable trading and investing game. All we have to do is buy an aggressive fund when the market turns clearly bullish such as in mid-1982 and late 1986 and sell and move into a money market fund when Stage 4 appears as in January 1984 and early October 1987 . When I first started recommending mutual-fund switching many years ago there were only a handful of funds that offered this opportunity. But the growth of .
