how to make money in stocks and how to get rich_101

Mutual funds are outstanding investment vehicles after you learn how

to utilize them corectly. Most people, however, do not have a solid

understanding or conviction about mutual funds.

like real estate. You may not make anything if you buy and later become

impatient or shortsighted and sell out after only three or four years. It

simply takes time. Nervous Nelies are not god fund shareholders.

Investors in open-end investment companies, as mutual funds are

sometimes called, tend to buy the best-performing fund after it has had

a huge performance year. The next year or two wil probably show slower

or poreresults folowed by an inevitableconomic recesion. This

is usualy enough to scare outhose with les conviction or the "I want

to get rich quick" fund holders.

Sometimes shareholders will switch to another fund that someone

convinces them is much safer (usually at exactly the wrong time) or has

a "hotter" recent performance record. Switching breaks up your longrange

holding plan. I suppose you should switch if you have a really bad

fund or the wrong type, like an income or industry fund when you

should own a diversified growth fund, buto much switching quickly

destroys what must be a long-term comitment.

Bear markets can last from nine months to two years or more and if you

are going to be a successful long-pull investor in funds, you'll need to

acquire the courage and perspective to live through numerous discourag