Learn How Gold Can Make You Rich Or Drive You Dirt Poor To The Loony Bin

You’re about to learn a cold hard truth about gold.

It may upset you. It may piss you off.

It may even make you want to close this page and forget you saw it…

But I’ll make you a promise – stick with it, hear me out…

And I guarantee you’ll be glad you did.

Making money in the gold market is easy right now.

Actually, wait, it’s beyond that. It’s super easy.

You see, gold is one of those markets that attract amateur traders.

In the video below, I do technical analysis on the FOREX_XAUUSDO” target=”_blank”>spot price of gold, tell you why I think gold is going higher, and how best to play it for profits. But first, let’s get to that cold hard truth that might upset you or piss you off.

Amateurs try and make money from gold using a buy and hold strategy. They get “married” to their gold position by forming an emotional attachment. That’s where you and I come in to take their money.

Trading is part rational and part emotional. People often act on an impulse even if they know they have harmed themselves time and time again in the process of so doing. A winning trader becomes too confident about his positions and misses sell signals.

Rather than following their trading system and selling out of gold when it fails to make them money, they hold on, hoping their gold position will go higher.

People change when they join crowds. They become more impulsive, search for a leader, and are more likely to react to emotion rather their own individual intellect.

In studies done in the 1950’s by psychologists, an individual can tell which of two lines is shorter on a piece of paper; however, when he becomes a member of the crowd, he loses that ability when put into a group whose members purposely give the wrong answer! This isn’t a guy with low IQ either. These were college graduates who were swayed by the opinion of the crowd!

In other studies, it was discovered that group members believe other group members and group leaders more than they believe themselves. According to Sigmund Freud, groups are held together by their loyalty to the leader. The feeling group members have towards group leaders stem from our childhood feelings toward our fathers, feelings such as: trust, fear, the desire for approval, and rebellion. When we join groups, our thinking regresses to the level of a child. A leaderless group cannot hold itself together and so it falls apart. This explains most amateur gold traders.

They start looking for a crowd “leader” to follow. And they find it. There’s lots of strange gold bug leaders out there coming up with conspiracy theories about how the U.S. government is working with the illuminati to keep the price of gold low so that the U.S. dollar stays strong.

We don’t care to waste time arguing with these paranoid, perma-bull gold investors. All we care about doing is playing off their paranoia to take their money.

These emotional traders do not pursue their best long-term interests. They are too busy arguing and trying to defend their gold position or complaining and coming up with conspiracy theories about a losing position.

Think about it. If the U.S. government, institutions, and the illuminati with their alien accomplices, all were conspiring together to keep the price of gold down, you’d have to be a complete IDIOT to try and trade against them! With the Federal Reserve as their tool, they can literally print money at will to move the gold market in which ever direction they want. They could also tell their alien friends to abduct you if you are long gold or zap you with a laser. What retard would try and bet against them to make money?

Oh wait. There’s a part two of their conspiracy theory. It says that the evil U.S. government and institutions who are holding gold down are going to fail because a grass roots movement of people around the world are going to see through their baloney and buy gold and this massive buying of gold by common folks around the world is going to bring an end to the evil illuminati as we know it. The U.S. government, Federal Reserve, and illuminati are going to be unable to meet the margin requirement on their short position and as a result are going to have to cover their short position which will cause the biggest run up in gold that the world has ever seen.

So it’s not enough for gold bug leaders to pitch to their followers that an evil, top secret conspiracy exists between the U.S. government and institutions but also that their evil conspiracy will ultimately fail, pushing gold up to $3,000 an ounce and more.

Your goal is to take money from these emotional amateur traders.

Gold looks to be a good entry now, and we exit when it runs up to test the $1,000 an ounce level or when the momentum begins to fall and we get a sell triangle on the weekly chart.

Most of the emotional amateur traders will not sell at this level as they will be too busy claiming that this is the mother of all run ups and that they were right all along.

These amateur traders act on impulse even if they know they have harmed themselves time and time again in the process of so doing. This is the same thing that happened in February when gold ran up to $1,000. Smart, discipline traders sold out of gold around $1,000. Just a few weeks later, gold fell all the way back to $864. We took money from amateur gold traders back then, we’ll do it again now, and we’ll keep doing it as long as they stay stupid and continue to let us.

I hope you enjoy the video below and feel free to leave your comments. Thank you and happy improved trading.