When a st.ock stinks WalletDoctorBlog�

Hi WalletDoctorBlog-

..notice that on January 3rd a question was posted
about AAPL in the Wallet Doctor Forum
(http://walletdoctor.com/thedoctorisin/login.php)
about Apple Computer. I commented that I
did not like the chart pattern. Here is why.
[Open another browser window for
www.bigcharts.com and then type in the
ticker symbol for Apple computer (AAPL).]
When I looked at the price chart I immediately
noticed that it had been in a constant uptrend
from $40.00 per share to $80.00 per share.

http://www.walletdoctor.com/stockcd.htm

Pay attention. What I did not like about the
chart was that it had risen too much. This
means that all of the people who bought at
lower prices are starting to take profits by
selling out. Selling pressure forces the stock
down.

http://www.walletdoctor.com/stockcd.htm

Ironically, when �financial gurus� are hawking
their secret method they will write idiocies
like �100% return on AAPL this year alone.�
Anytime a stock like AAPL has a long extended
rise like this every financial analyst (a close
cousin to the gypsy fortune teller) claims that
they saw AAPL coming and how you missed
out because you weren�t listening to them.
This is how the unknowing public�s attention
is diverted to stocks that are already run up.
The greenhorns (another way of saying
inexperienced) get sucked into bad stock market
investments this way. The public gets burned
buying high and selling low. I don�t teach you
to listen to me I teach you to listen to yourself
for this very reason. This is why it is so important
that you develop your own skills to analyze and
select your own stocks..

http://www.walletdoctor.com/stockcd.htm

Also notice how Bigcharts.com kicks you onto
a one year chart automatically. That is because
almost everyone who wants to get rich in the
stock market focuses on the short term and
looks at one year charts. [Use the drop down
menu next to where you entered the symbol
to select a decade chart and look at what
happens.] It is obvious that the right time to
buy was back in 2003 when you weren�t
hearing anything about AAPL. I would have
written something like this, �AAPL has a
0% return this year and is my hottest buy
recommendation� and would not get any
interest from anyone because people simply
do not understand long term stock investing.

http://www.walletdoctor.com/stockcd.htm

If you would have bought AAPL at the
right price you would have paid between
$8 and $10 just a few years ago. You would
have had around a 700% holding period return
when all of the greenhorns were jumping in at
$80. Now you tell me who would sleep better
at night. You would have bought at $10 and
would be selling now to the greenhorns who
bought in at $80. You would sleep well at
night while they are tossing and turning in bed.
This is why it is so important for you to learn
how to invest in the long term.

http://www.walletdoctor.com/stockcd.htm

There is a lot of detail to reading long term
charts well but you can see how easy it is to
spot the sucker plays on a long term price chart.
Go here right now to start to really learn how
to buy low and sell high:

http://www.walletdoctor.com/stockcd.htm

-Scott

Ps. I want to give a big kudos to the person
who posted that great question on the forum
please keep posting them and I will keep
teaching you. Don�t forget that you have
to register to get in:
http://walletdoctor.com/thedoctorisin/login.php

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