4 Facts Bernanke Can't Deal With

Well Chairman Bernanke finally rolled the dice. The question is, what will be the results of this unconventional bet? The U.S. is now officially in uncharted waters. We have never seen interest rates this low before, and the U.S. has never been in such a precarious position.

Chairman Bernanke's proposed solution is a simple one. Let's do everything the exact opposite of what we did during the Great Depression and let's see if we can spend our way out of it. This is an unproven thesis and there's no guarantee that it's going to work. What if it doesn't?

I think right about now we need to have a reality check and look at the facts as we see them:

Fact #1: The consumer is in a state of shock. With the collapse of the stock market, the American people have seen the value of their property rapidly diminish in value as well as the depletion of the retirement programs they may have had in place. This double whammy basically destroyed consumer confidence, which is going be a difficult task to correct as the public is waiting for the other shoe to drop. So, let's say this dramatic drop to record low interest rates doesn't work, then what? Well the Fed will just print more and more money which will create its own set of problems in the future. Mark my words, the amount of money to be printed will be close to $5 trillion as the FED is determined to get us out of this hole. This in turn can only mean one thing in the future ... rampant inflation. This is something that we are all going to have to deal with down the line.

A Word of Encouragement for the 'Average Trader'

I'm going to cut right to the chase...READ THIS!! Our good friend Norman Hallett from DirectYourMind.com has been an expert in the psychology of trading for years! He's helped, and helping, thousands of traders a day to get their minds right. So read this article and check out Normans site.


"Deep recession!"


"End of the world as we know it!"

Anyone who's tuned into CNBC or CNN has heard these statements of doom and gloom.

They may or may not be true.

We are not in control of what happens to the economies of the world.

We ARE in control of how we handle our personal finances in light of these possibilities and, as traders, how we choose to TAKE ADVANTAGE of all situations... including this one.  No, ESPECIALLY this one.

We know that price action is a reflection of what is perceived "to be", not what is.  We know if we take a position and employ money management techniques, then
if we are wrong in our position, we will get pinched and not punched... and we'll re-analyze and go again.

It's the way of the trader.

For the trader, the greater the economic challenge, the greater the opportunity to better ourselves and our family... through our trading.

When most individuals are hiding behind excuses, the trader steps up to the plate.

We are lucky, indeed.

But don't fool yourself. Being a trader, is not easy.

I look at markets in turmoil and I "feel" for the average trader.

The average trader has every good intention, but lacks the two basic elements to consistent trading success...

A formulated trading plan, whose elements are the components of a good trading system or systems, is the first element. And having the mental and emotional discipline to run that plan is the second element.

The GREAT NEWS for the 'average trader' is that it doesn't take years to elevate your level of trading... months, yes, but not years.

The further GREAT NEWS is that we are in historic times.

The opportunities that will unfold over the coming weeks, months and years could result in windfall profits for those traders who choose to master the two elements mentioned above.

Shake-outs like we are experiencing now in the marketplace yield new super-trends that may be followed.. and ridden... by those who are prepared.

So should you "drop back and punt", and stand aside while the market displays its current violent ways?

Only you know the answer to that.

Are your two basic elements solid?

Is your trading plan MEANT to handle extremely high volatility?

For any average trader... these are the type of markets that exploit your weaknesses.

FOR YOU, it's time to re-group and prepare yourself for the opportunities that are about to present themselves as the smoke starts clearing.

Adopt a solid trading plan, based on a solid trading system. AND

Start now to make the development of your trading discipline a PRIORITY.

Without COMMITMENT to these two elements, you will not succeed on a consistent basis and will not be able to take advantage of the opportunities to come.

This is NOT the time for excuses.

It's your time for admission... recognizing that you do, in fact, possess these two elements, or admit that you don't and work NOW on shoring them up.

I've been trading for 25 years I can say with confidence that the opportunities that are about to unfold will be historic.

Fortunes will be made.

The Disciplined Trader with a tested trading plan and possesses solid trading disciplined will gather the money of The Average Trader who continues to downplay both.

It's time to prepare.

Norman Hallett