Have you asked your broker what you should do? About 99% of them don’t have a clue and worse yet have no exit strategy should the market head down again and break out that 12,800 level.

As a former exchange member and floor trader there is an adage that we all know: when in doubt get out. It is better to be out wishing you were in, than in wishing you were out.

Every investor whether he is long term or short term should have a risk strategy in place. It should be one that the broker knows and will follow when a portfolio gets in trouble. Trouble is when positions start losing 10% or more from their highs.

Most investors do not realize that the average broker has 300 accounts and unless the client has a large 6-figure account he will not take time to watch it or do any analysis. That is why the investor must pay attention to his money.

When a market is sinking and the investor sees his account shrinking he may call to find out why. Believe me, no matter what the answer, they don’t know. You get the pat Wall Street jargon of “the market always comes back” and the broker’s favorite called Dollar Cost Averaging.

He will suggest the Wall Street logic to buy more shares now so that when your equity rallies your average cost will be lower so you can make more money. It is a great way to go broke. But what if you are giving back profits that have accumulated over the past 3 years? Brokers never want you to sell and go to a money market because they make nothing while you are protecting your funds.

You will never hear a broker tell you that CASH IS A POSITION. Those who encourage selling get fired. Brokerage companies make money as long as the investor has an equity position, but nothing when in cash.

Brokers will tell you over and over that you cannot "time the market". WRONG. Just because they are not smart enough to do it does not mean it cannot be done. I have been doing it for years and have never been caught in a bear market. Even the Federal Reserve Board published a paper saying that "market timing" works. There are timing programs or services that can be bought that are very simple and easy to understand. To protect your retirement funds you must have this in place.

This market is too volatile to pick any single equity. What to buy now? That should be more aptly phrased, “ What should I do now to protect my portfolio”?

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!"