Are You Caught In The Subtle Trading Trap?

A trading profit can prove very elusive to even the most intelligent of people. There are hundreds of systems, indicators, and methods to turn trading losses into trading profits. What you use should be a personal choice, based on your emotional style and on what fits you best. Play the game on your own terms: on the field you like, with the tools and equipment you need. There is no "one-size-fits-all" trading program that is right for everybody on the planet.

To be profitable, you must treat trading like a business and keep your head. To do that you need valuable and useful information that you can assimilate in a short period of time.

What I hope to do is dramatically shorten the time it takes to get you where you want to be as a trader, saving you painful losses and transforming them into trading profits. With this knowledge, you'll be fitted with your own suit of armor, so that you and your money are well protected on the battlefield of the markets.

Time is money. Let's get started.

While doing research on trading, I discovered a very subtle, almost hidden, phenomenon that gave me further insight into why hundreds of thousands of otherwise successful people with above average intelligence can't seem to cut it as traders. I'm referring to something that happens--not a character trait.

I know several experienced brokers who have dozens of clients who are astute, successful individuals--outside of trading. They seem to have all the right characteristics, yet for some unknown reason they do things while trading that they wouldn't dream of doing in a profit making business. The brokers wonder why so many people seem to lose their minds when trading.

The answer is elusive and frustrating not only for the brokers, but for the traders as well. After all, the traders are the ones losing money with their irrational behavior.

The reason for that is what I call The Subtle Trap of Trading. It's found in Futures, Stocks and Forex markets. As you read the following, you may get the same thought that came to me:

It sounds like a conspiracy!

Though I don't believe it is, the "system" sure does seem to work in favor of a few at the expense of many.

Everything involved in the trading industries seems very upfront, but when you take a deeper look at how things work together, you come to understand something that very few others do, and you'll begin to see why so many people end up frustrated, confused and losing money in the markets.

I call it a trap for good reason because most traders will struggle and continue to lose money until their account is wiped out. Sometimes it has them so trapped that it even goes beyond their account into non-risk capital.

How the trap is set:

Back when you first heard about stock investing -- long term investing, not day trading -- you were cautioned to do research before investing and to learn the things that made for a good company to invest in.

You discovered there's a lot to learn before investing in a company. You need to learn about the industry, their market position, the current management, their track record and competitive advantage, how to read the company's financial statements and annual reports, etc., etc. A lot to learn.

Be safe and choose wisely, you're in it for the long term is good advice you probably heard. A fundamental principle on the road to trading profit. Perhaps your investing consisted exclusively of mutual funds and a 401k. Safe, simple and easy, and well within the comfort zone.

But, somewhere along the way, you heard about the wonderful world of the profitable commodities markets. You heard how simple it is and about the fantastic leverage involved.

And commodities aren't companies that require research to understand. They're goods - things you grew up with. Gold, silver, wheat, soybeans, cattle, corn, sugar, natural gas, oil, etc. It's all so familiar.

And here's where the trap is set.

Several things work in combination to make up the trap, and the first one is familiarity. This one fact is very subtle yet has an incredibly potent effect upon you and your trading.

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