Don’t Invest in Stocks – Ever!

Right now as I write this, the stock markets are in the dumper. The Dow Jones Industrial Average just broke down through 8,000. Many people insist this is not a good time to be holding or buying stocks.

Let me go a step further: there is NEVER a good time to invest in stocks. A share of stock is just a piece of paper. It represents nothing tangible. The fluctuations of a stock’s price are not really driven by changes in the value of the company that issued the stock. They’re driven by mob psychology.

Stocks are ultimately only as valuable as large groups of people (investors, analysts, fund managers) say they are.

Futures, on the other hand, do represent an ownership interest in something tangible. Corn, gold, oil. Solid, real stuff. Things that people want and/or need. And value, therefore. The prices of commodities fluctuate in response to true market pressures. You know, forces like supply and demand. Thus, I contend, futures are less risky than stocks.

Scary, you say? You don’t know jack about futures, you say? If you’ll allow me, I’d like to try to bring some light to this dark corner…

Forget what you’ve heard or read about trading the futures markets.

“Common wisdom” about “commodities speculating” is like “common sense” – so uncommon as to be downright scarce.

To be successful in commodities trading, you need only a handful of skills: patience, determination, patience, skill, your powers of observation, and did I mention patience? You also need to beware of what I call the Five Big Lies of Futures Trading.

Here they are:

The Five Big Lies Of Futures Trading

BIG LIE # 1: I’ll lose all my money trading futures.

THE TRUTH: Only if you don’t have a trading plan, a money management plan, and the discipline to stick to them.

BIG LIE #2: You need a lot of money to trade futures.

THE TRUTH: Some grain contracts can be purchased for under $1000.

BIG LIE #3: You have to be a high-powered expert to trade futures successfully.

THE TRUTH: Futures markets are very simple, and keeping up with them is also very simple.

BIG LIE #4: You have to stay glued to your computer monitor every minute the markets are open.

THE TRUTH: With some trading strategies you only have to look at charts once a day – some of them only one a week!

BIG LIE #5: The big guys get all the inside information before us and take all the profits.

THE TRUTH: Forget fundamental analysis and grain reports; stick to what the market is telling you through the charts.

Futures markets are actually quite simple. For example, they can only go in three directions: up, down, or sideways. Also, there are only two positions: you’re either in the market or you’re not in the market. Not having a position is a position. Risky? Commodities exchanges are closely supervised by the Commodities Futures Trading Commission (the CFTC).

To become successful at futures trading you only need to master a few basic concepts:

• What to trade and what not to trade
• Contract specifications
• Leverage
• Getting in
• Protecting your backside
• Getting out
• Reading chart patterns
• Give-back
• Paper trading
• Money management

I’ve been trading successfully in the futures markets since 1994, and I’ve learned a great deal about profitably investing in the futures markets. That’s what I’d like to share with you

For more information, please visit

http://www.futures-profits.com

Best of trading success in your investing ventures!

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