Everyone knows T Rex was the most fearsome of all dinosaurs. He could and did kill everything in his path for food or maybe stupid meanness. His brain was very small and he did not survive.

There is a T-Rex among us today and it is disguised, but it is killing us in another way. This T-Rex is killing and eating our retirement portfolios. You may have noticed your stock account has lost some of its value during the past 3 years. Something or someone is nibbling away at it. It has gotten so bad that many people dont even want to look at their statements every month. Is there a way to keep the beast, whatever its name, from completely eating everything? Yes, there is.

Currently there is an advance in the stock market and you have been told by the talking heads on CNBC-TV that the bull market has resumed and it is best to "put whatever cash you might have into the market. Dont lose this opportunity to make back what you have lost".

This is a very sneaky T-Rex. It is out in the bushes and it may not have seen you yet. If you still currently own any equities you want to protect them from the beast. If this is a new bull market you may want to participate. OK, buy something, but you must know where to run to hide should the T-Rex come out again. How?

Now, I said now, you must decide how much you are willing to risk from here, not where you were 3 years ago. Dont try to get even. You cant. As this market rises you should be following every stock you own with an open stop-loss order. It could be 8%, 10%, 15%. Whatever you feel comfortable with. Do not try to outsmart the beast. Listen for his return and have your protection in place so it will automatically be triggered when T-Rex returns.

None of us knows how long you will be able to graze in the green pastures. It may only be days, but could be months or longer. If you are cautious the monster will not get you. The market itself will tell you when to run for shelter. No guessing. That is the wisdom of a stop-loss protection.

Take a few moments to review your stock and mutual fund holdings of 2000. Look up the price at that time for each issue. If you had placed loss protection on each one how much would you have saved?

In a bear market the best offense is a good defense. Dont let T-Rex get you.

Al Thomas

Albert W. Thomas has spent most of his life in the field of finance. In 1965 he founded an insurance holding company, Security Dynamics Investment Corporation, after having been an agent and General Agent for several life insurance companies. In 1970 he became cofounder and president of Real Life Estate, Inc., that marketed a unique real estate and life insurance package.

After he became interested in commodities he bought a seat for his personal trading on the Chicago Open Board of Trade, which is now known as the MidAmerica Commodity Exchange. Later he became a full time trader and also acted as a commodity broker for a few select clients. By fellow floor traders Al is considered to be an excellent technical analyst much of which is outlined in his book IF IT DOESN'T GO UP, DON'T BUY IT! It became a best seller on Amazon.

In 1981 he sold his membership on the Exchange and with his wife, Carolyn, lived full time aboard their 41' ketch, the Aumakua (which means guardian angel in Hawaiian). They sailed in Florida and the Bahamas for two years.

He founded World Trading Group in 1984 that grew to the seventh largest introducing commodity brokerage firm in the U.S. with 35 offices from coast to coast, Alaska and Canada. It was sold in 1992.

Al is a graduate of Northwestern University with a B.S. degree in Commerce and is a member of MENSA. He is now president of Williamsburg Investment Company that syndicates his weekly financial column since 1999 to more than 300 newspapers and writes a financial market letter called Over My Shoulder that is quoted in Barron?s and many other publications. A 3-month trial subscription is available on his web site. He is a regular guest on several financial radio talk shows.

His favorite pastime is fishing.

Mr. Thomas is available for speaking engagements. Please call 321-453-5300 for more information.