You Have A Natural Profit-Stealing Bias. Here's How to Squash It

Please do not reply to this message, as replies are routed to an unmonitored mailbox. You are receiving this email as a part of your subscription to 10-Minute Millionaire. Your ability to alter your subscription information can be found at the bottom of this email. [10-Minute Millionaire] May 17, 2018 [Night Trader UPDATE:21 Double- and Triple-Digit Winners in THREE MONTHS!!!!]( Over the last 14 weeks, Chris Johnson (AKA The Night Trader) has delivered an astounding 21 double- and triple-digit winners. That averages out to almost TWO winning trades PER WEEK. This fact alone should be enough to make you want to join Chris [immediately](. --------------------------------------------------------------- The 10-Minute Millionaire System Find the Extreme: Each week, we'll show you pricing anomalies in stocks, bonds, ETFs and entire asset classes you can exploit for explosive profits. --------------------------------------------------------------- Frame the Trade: Next, we'll show you exactly when to make your move - picking the spot for the biggest upside, while slashing risk with a loss-eliminating escape route. --------------------------------------------------------------- Book the Profit: Here, we'll tell you how... and when... to close the trade and walk off with wealth-bolstering gains over and over again. The Millionaire's Checklist [Fast-Track Your Path to Millionaire Status]( D.R.'S LATEST ALERTS [212% Profits on a Snapback in this Tech Giant]( [This Cybersecurity Play Did 454% Better Than the S&P]( Stay Connected Hello, 10-Minute Millionaires! I want to keep the conversation going. Make sure to follow me at [Facebook]( and [Twitter]( for new and exciting ways to get into the Millionaire Mindset. [The Most Important "Think" in Your Millionaire Journey]( By D.R. Barton, Jr. Hello, 10-Minute Millionaires! I taught my first live trading seminar in October of 2000. That was a full 15 years after I began to trade. As long-time readers already know, I take a very methodical approach to the markets. And after personally training thousands of people, and working with top traders all over the globe, I've discovered that what people should do when trading and investing and what they actually do are often two very different things. I received my MBA degree when modern economics theory was still based on the assumption that people make decisions so that they will get the biggest reward. (That's called the "theory of expected-utility maximization", for those of you who had the name on the tip of your tongue, but just couldn't quite remember it...) In fact, you couldn't get an economic paper published "back in the day" if it didn't have utility maximization and efficient markets as foundational beliefs. Thank goodness both of those theories have holes in them big enough to drive a bus through... That's because our 10-Minute Millionaire strategies depend on people acting irrationally from time-to-time. When people get crazy (act irrationally) markets or stocks get driven to extremes. And it's at those extremes where the fastest and biggest profits are found. Of course, there's a catch. In order to corral those profits, we have to remain completely rational at all times. Identifying crazy behavior in the markets - and avoiding it ourselves - is one of our foundational (and hardest) tasks as traders. But oh, so rewarding. Here's how to do it... --------------------------------------------------------------- This Algorithm Can Predict Where the Market is Headed Next - with 93% Certainty It costs $1 million to develop and has taken EIGHT years to solve, but this algorithm can predict which direction the market is headed next - with 93% certainty. After you [see this](, you will never invest the same way again. --------------------------------------------------------------- A Nobel Prize Winner Shows You How to Sidestep Emotional Biases One Nobel Prize-winning work changed the academic world to think a bit more like a trader when behavioral finance finally established psychology and mindset as important aspects in finance and economics. Daniel Kahneman, the 2002 Nobel Prize winner in economic science, proved that people act irrationally in the markets, exploding the old academic "myths" of how markets work. Kahneman and his co-author Amos Tversky put it right there in black and white: people don't make decisions based on probability and statistics. They make them based on emotions and past experiences. (As an interesting note: Amos Tversky passed away six years before the award was granted and Nobel Prizes are not awarded posthumously. So only Kahneman received the award for their co-authored paper on prospect theory.) In short, Kahneman and Tversky proved that decision-making for most people radically changes when they are faced with the combination of losing money and uncertain results. This potent combination changes people from logical, math-based decision-makers to emotional experience-based decision-makers. Using emotionally charged shortcuts or so-called "rule of thumb" guidelines makes us pretty lousy at deciding things. But if I'm being honest, I'd have to guess anyone who has traded or invested in markets knows what this Nobel Laureate was writing about. Traders and investors love making profits. But for some reason, they hate losses even more and will go to great lengths to avoid them. Traders rationalize that, "It's not a loss until I close out the position". So they hang onto little losing positions and let them turn into big losses. And traders love having a winning trade, so they tend to take them very quickly instead of giving a winning position the time to turn into an even bigger winner. These are the same findings that Dr. Kahneman wrote about in his ground-breaking article. One of the key principles here at the 10-Minute Millionaire is that we use these emotional decisions that drive market to extremes to find great trade entries. And we avoid falling into emotional traps (or biases) ourselves by first, recognizing they exist and second, having tools to combat them. All successful traders and investors have learned to overcome or at least mitigate these biases. And it's the proper mindset that sets the successful trader apart. There are successful traders in all timeframes, instruments and using many different strategies. But they all use similar thought processes in handling risk and uncertainty. It is this huge need to understand and counteract our natural profit-stealing biases that has compelled me to share some key learnings on "The Millionaire Mindset" today and in upcoming articles and videos. Remember I told you I was working on an exciting new project over the past few weeks? Well, that project is close to being finished, and "The Millionaire Mindset" is a big part of it. We're going to be learning how to tap into this mindset to set up income streams in a really unique way. I've been working hard on this for quite some time, and I'm pretty sure you'll be blown away by it... I have to visit the studio a few more times to finalize some recordings, but I'll have all the details ready for you in just a short while. Today, let's look at how you can avoid the decision-making mistakes that made a Nobel Prize winner famous. Think Like a Trader, Not Like an Emotional Mess The Noble prizewinner from 2002 identified three distinct decision-making problems. This week we'll look at the psychology behind these problems and how you can avoid them in your trading. In a future article we'll look at some hard numbers that will give concrete examples of how you can apply these simple concepts to your trading and investing. - Adopt an attitude of indifference to losses. Consider losses a business expense. Better yet, frame your losses as the necessary "raw materials" for your business. Framing losses this ways has several clear benefits. You understand that losses are a required part of trading. You want to minimize the cost of raw materials, not avoid them! (If you never bought any raw materials, you could never make any products.) - Accept uncertainty as a part of trading. The 2002 Nobel winner found that people pay too much to avoid uncertainty. There are many areas in life where people accept uncertainty: relationships are almost always uncertain, so are fishing trips and cheering for the Detroit Lions. In any of these endeavors, we don't know how they will end. It's the same with our trading. Accept that any single trade could be a win or a loss. Get out if you're wrong, and hang on if you're right. Over a large number of trades, good traders and good trading strategies will win. But for one trade, anything can happen. So don't get emotionally attached to a trade. Execute your plan and move on to the next opportunity. - Understand the Law of Small Numbers. Traders, like golfers, seem to be eternal optimists. A golfer can take 100 bad swings and still be excited to go out and play tomorrow because of one good shot. In a similar way, traders often draw broad conclusions from a ridiculously small number of data points. I wish I had a buck for every time I've heard, "That system (or newsletter or strategy) stinks - it lost three times in a row!". Then the optimist thought process kicks in, "There has to be something better out there!" Realize that it is impossible to draw a meaningful conclusion from a small number of data points. Three, four or even ten occurrences are not enough to draw a conclusion in the trading world (or in any complex environment). Spend the time to understand why your trading or investing strategy works and don't throw it away after a few losses. In terms of statistics, 30 trials is usually a minimum number that is needed to make any meaningful decisions for something as simple as a coin toss. For more complex systems (like the stock market), even more trials are required to draw meaningful conclusions. As a trader or investor, keep your emotions in check and understand what mindset biases you're prone to give in to. Let your knowledge of your system guide your decision making and you'll be on your way to beating a Nobel-sized problem that plagues traders both new and old. Great trading and God bless you, D.R. Barton, Jr. P.S. There's still time to get into my latest Fast Profits trade, courtesy of our friends at Money Morning! I expect it to hit 75-100% by June 1. [Just click here to get that, and all future Fast Profits trades, for free](. --------------------------------------------------------------- [Bloomberg's Big Decision - and How It Could Impact the Future of Cryptocurrency]( Bloomberg just made an announcement that shook the cryptocurrency world to its core. They announced the launch of their Bloomberg Galaxy Crypto Index, adding themselves to the ever-growing list of institutional investors diving headfirst into this new age of investing. And I expect [this one little-known coin]( is at the center of this frenzy. Right now, this coin is still at a tiny fraction of Bitcoin's price - meaning there's time for you to make massive potential profits... [IF you make the right moves now](... --------------------------------------------------------------- [This "Pinhole" Quickly Reveals the Quality of Any Company]( Rather than sift through endless numbers and financial statements to understand the health of a company, there's one tiny, simple number I look at that lets me know if it's a good idea to make a trade. If you can understand a pinhole, you can understand this - and it will likely change the way you look at stock picking forever. This one number has been my favorite fundamental indicator for years, and it has led to countless profitable trades. It will lead to countless profitable trades for you as well, if you know where to look for it. [Click here to learn how to locate this "pinhole" and understand how it pertains to one popular company](. --------------------------------------------------------------- [Watch Stuart Varney Throw Our Financial Expert "Under the Bus"]( Stuart Varney has no shortage of humor... and a little good lighthearted banter. This is only accentuated when he is captured "off-script," saying what he really thinks. In a recent live appearance with our very own D.R. Barton, he opened the show by blaming D.R. for a derogatory quip about a particular retailer just after the countdown. While the company shall remain nameless, it was one of the most humorous openings in a while. [Click here to listen to this latest display of live banter, and see how D.R. responds](... --------------------------------------------------------------- The Fed Is Hiding This One Counter-Intuitive Truth from You The Fed is an institution that many people have come to trust, yet most of us misunderstand how it really operates. Most of us think that the Fed controls interest rates. We think that the Fed tightens and loosens the markets at its own will. What may come as quite a surprise to many of us is that the Fed can't actually do precisely what it claims to. The Fed actually has no control over interest rates. [Click here to sign up for my twice weekly Sure Money Investor, and I'll unravel this mystery on why the Fed merely ratifies what has already occurred, and why the market tightens and loosens all on its own...]( --------------------------------------------------------------- How to Deploy Your Lifeboat before the "Market Titanic" Coming this July We all remember the well-known accident of the Titanic. The ship hit an iceberg and most of the people drowned. Well, while this upcoming market accident may not be nearly as severe, it invokes an important reminder: Have a lifeboat. If you haven't deployed your lifeboat, I suggest you do it now. The markets are about to hit an iceberg, and once it does there will be little time to escape. [Click here to sign up for Lee Adler's free twice weekly Sure Money Investor, and learn the one thing that can keep us afloat through July](. --------------------------------------------------------------- [The world is changing - don't get left behind...]( Right now, solar power occupies just a tiny niche of the global energy market - less than 1%. But a [massive wave of new wealth]( is about to be unleashed that could be yours for the taking. See, California just passed a mandate requiring all new homes built after 2020 to include solar panel installations. And our energy expert, Dr. Kent Moors, has uncovered the [one company]( at the heart of this solar revolution. With over 200 patents protecting their market share, it's no surprise they're positioned for a [potential 80,000% sales surge](. If you want to capture the biggest profits, it's essential you [learn how to get in early](. 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