The stock market has been going up for the last three years. Are you rich yet? What most investors fail to remember is not how much you made, but how much of what you made you keep.

There were thousands of paper millionaires in 2000 who are wishing they had known when to sell at that time. Of course, hind sight is always 20/20. Is there any method that could have been employed that would have given an investor a chance to keep most of his money? Yes, but even if your broker had known about it his brokerage firm would discourage telling you.

If you had known and told your broker he would have pooh-poohed the idea and if his boss found out he was encouraging his clients to follow the method he probably would have been fired. It is a simple exit strategy used by all prudent investors during bear markets.

There are two ways to keep your money.

A simple trailing open stop loss order is easy, but requires your attention on a regular basis. You must first decide how much you are willing to risk. Many professional traders recommend 10%, but depending upon market conditions and type of equity it could be more or less. When in doubt 10% is a good number.

Another very excellent equity-protector is a simple moving average. The shorter the time frame the quicker a position will be exited. Also many stocks have a history of violent ups and downs. For the non-professional it is best to invest in no-load mutual funds and use a longer time period simple moving average.

Even a simple moving average must be mastered. Many texts on technical trading speak of action when the line is penetrated, but experience will teach the direction of the line is the key to the greatest profits.

A long-term 200-day moving average line used for mutual funds keeps the investor in the position as the line is ascending. When the line turns down the investor sells. The 200 line for mutual funds is not affected by the daily movements of the stocks within the fund,

Observation will prove that once a trend is in place either up or down it will last for a considerable period of time