RDF stands for reality distortion field. It was first coined by Apple Computer in 1981. However, Apple genius, Steve Jobs recirculated this company saying years later.
Courtesy of Wikipedia...
In essence, RDF is the idea that Steve Jobs is able to convince people to believe almost anything with a mix of charm, charisma, bluster, exaggeration, and marketing. RDF is said to distort an audience's sense of proportion or scale. Small advances are applauded as breakthroughs. Interesting developments become turning points, or huge leaps forward . Those who use the term RDF contend that it is not an example of outright deception but more a case of warping the powers of judgment. The term "audience" may refer to an individual whose attitudes Steve is intending to affect.
You can substitute Steve Jobs' name with one of your own choosing.
So how does this apply to the markets and how can it hurt your trading? I have said in previous posts that one of the most important elements in trading is perception. This one aspect can often trump the fundamentals and occasionally the technicals.
So here we are in RDF land. The fundamentals for the economy in the US are not good. Unemployment continues to rise and is expected to go over 10%. The long end of the treasuries are moving back up indicating possible inflation. Crude oil prices are on the rise taking money out of everyone's pocket and the dollar is headed lower.
So why is the market going higher? I believe the market has been heading higher for a couple of reasons:
1) The perception that things are going to get better. That's a very powerful force in the marketplace.
2) The technicals have improved quite dramatically feeding into the perception that happy days are here again.
So what's really going to happen in the future? Will oil hit $80 a barrel? Is Gold headed for $1300-$1500 an ounce? Is the stock market going to tank again with higher interest rates and inflation?
There are no easy answers to these questions, however, by following just the pure market action with our "Trade Triangle" technology, the likelihood of coming out ahead and being successful is far greater than just reading or listening to the web or tv's talking heads.
By having a sound game plan and approach to the market place, you will come out ahead.
I don't want to keep repeating myself, but I think that humans tend to over complicate and over think everything, including the markets. What can the market really do? It could go up, it could go down, or it could go sideways. I know few other elements in life that are that simple.
In the next 12 to 18 months we're going to see some extraordinary opportunities to make money in the markets. Only by approaching the markets with a game plan and a market proven system will you be able to come out substantially ahead of most other investors.
I invite you to look at a program that will help you get ahead in the future. This new video will show you many of the great MarketClub features that you can use today to help achieve greater success in the future.
The videos are always free to watch and there is no need to register. I would love to get your feedback about this video and your own predictions about these markets on our blog.
All the best,