The inventor took his new idea to a commercial trade show, set up his booth and tried to interest manufacturers to produce his new kind of watch. Of the thousand people only 2 were willing to try it – Texas Instruments and Seiko Corp. of Japan. Ten years later the Swiss manufacture of watches had shrunk to 10% of their former production.

It took a complete change of thinking to produce this new model. Most people are rooted in the old way they have always done things and are reluctant to change. The new model, the new paradigm is refused.

Now think about a new paradigm for your investment portfolio that will protect from loss and lock in profits.

Wall Street has been teaching since time began to Buy and Hold. When a stock or mutual fund heads south clients are not to worry about it because “the market always comes back”. But the question is, “In your lifetime?” There are thousands of stocks that go up then go down and never recover.

Here is the change in thinking. Place a stop-loss order about 10% or 15% below the price of each equity. This is especially true when the investor makes the initial purchase. The most important thing every professional investor does is protect his capital. He never need worry about how much he will make. The major concern is how much can be lost if this turns in a mangy dog. After this gem does go up then replace the stop-loss order to a higher level and continue to do that until it is finally stopped out (sold out) with a nice profit.

Brokers will not want to do this for one very simple reason. They become responsible to see that the order is executed. He will actually have to watch the position. If he gives the client a hard time then find another broker.

Customers are not taught this simple method of thinking about the stock market. It requires a change of thinking. This is a better way than how the brokerage houses tell you.

This paradigm will allow the investor to make more money because when he is sold out and has cash in the account he will be able to find a better stock or mutual fund that is going up.

Al Thomas' 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 at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2006 All rights reserved.

Copyright 2007 Albert W. Thomas All rights reserved. Author of "IF IT DOESN'T GO UP, DON'T BUY IT!"