"Who Else Wants To Discover The Trading Secrets That 95% Of All Traders Don't Even Know Exist...

And Could Give You An Edge That Most Traders Only Dream About..."

Welcome to Instant Profits! This is a special sneak preview chapter of my omni-profitable trading system. After 30 years of trading the markets, I distilled the best of what made me successful in the markets into an easy-to-follow trading course that I call Instant Profits. The course is made up of the following parts: The Instant Profits Manual, including over 40 charts and 50 example trades. Over 75 minutes of screen capture video tutorials on CD-ROM. A 90 Minute DVD of my sneak preview Instant Profits seminar. 4 trading blueprints. Lifetime customer support just drop me an e-mail and Ill answer all your questions because I want you to be successful! This sneak preview chapter is just a tiny part of the 150 page manual. Its meant to give you a glimpse of the manual, but the true meat of the system is only available when you purchase the course. Im so confident that Instant Profits will help you that I want you take 90 days to evaluate it 100% satisfaction guaranteed. If you truly feel that Instant Profits hasnt taught you anything about making money in the markets, Ill give you a full refund. When youre ready to order the complete Instant Profits course, just click on the following link: http://www.instantprofitstoday.com/ I worked hard to make Instant Profits easy to understand and easy to apply. I hope you enjoy everything it has to offer, and I look forward to seeing you become an owner of the entire Instant Profits trading course. Good Trading,

Instant Profits

The Top 11 Trading Myths

In order to be a successful trader with Instant Profits, you need to first have the proper mindset. With that said, lets address the Top 11 Trading Myths. Hopeful investors have lost millions of dollars because they believed in these myths. I know you dont believe any of these, so this will just be a good review for you.

Myth #1 Buy and Hold is Safe

This is an investment strategy based on the belief that the stock market always goes up in the long run. The problem with this strategy is that the long run can be a very long time. For example, the Dow Jones Industrial Average did not return to its 1929 peak until 1954, a full 25 years later. During that time it dropped precipitously incurring unacceptable risk which no one would sit through. To make matters worse, few money managers can duplicate the performance of the general market. The late 90s dot.cominspired boom and bust is another example of why buy and hold is not safe. For every strategy, whether an investor or trader, you must have an exit strategy that limits risk, otherwise you are just buying, holding, and hoping (or praying).

Myth #2 Trading Is Easy

The physical act of trading is easy, but making money consistently is not; otherwise, everyone would be rich. Trading does not have to be difficult, but it requires diligence on the part of the trader to follow a good trading method, use good money management principles, and trade with discipline, none of which are easy but all which are being done by successful traders.

Instant Profits

Myth #3 The Holy Grail of Trading Exists

It doesnt! Any good trading method will incur losses. The key is to use proper money management principles to limit those losses and in so doing be a net winner.

Myth #4 Selling Short Is Risky

This myth stems from the fact that theoretically there is no limit to how high a stock can trade while that same stock can only trade down to zero. So, a short position could suffer unlimited losses while long position losses are limited on the downside. The truth is, selling short is no more risky than buying long as long as prudent stops are used. In fact, being long in a bear market is far more risky than being short. And of course, being short in a bull market is equally risky. So the riskiness of a position is dependent on the use of good money management methods, not whether you are short or long.

Myth #5 Good Trades offer a 1 to 3 Risk / Reward Ratio

Conventional wisdom is that you should only take trades that deliver a reward that is 3 times the risk. The trouble with that approach is that in the real world of trading, such trades are usually only successful less than 35% of the time. That means 65% of the time the trade is a loser and that the probability of 5 losing trades in a row is about 11%. Most traders will not tolerate those kinds of losing streaks on a regular basis and will probably abandon the method. On the other hand, a good trading method that delivers at least a 1 to 1 risk / reward ratio has the potential to be profitable about 65% of the time. In this scenario, 35% of the trades will be losers and the probability of 5 losing trades in a row is only about one half percent (0.5%). Most traders would be happy to win 65% of the time with a 1 to 1 risk reward ratio with little chance of an extended losing streak.

Instant Profits

Myth #6 Dollar Cost Averaging is a Good Strategy

This is a method of adding money to your portfolio on a regular basis; say monthly, so that you buy into the market incrementally, sometimes at a lower price and sometimes at a high price, dollar cost averaging your purchase price. This method is attractive to the buy and hold crowd, but is not something you want to practice as a trader. If, after putting a long trade on, the market goes against you, you never want to add more money to the trade to average your cost. That is simply bad practice and does not pay off in the long run. It is much better to take your loss at your stop point and go on to the next trade.

Myth #7 You Must be an Insider to Make Money in the Markets

Ethical insiders in corporate USA are notoriously poor investors in their own companys stock. They do not have an edge on the market. In fact, they are constrained by the SEC as to when and how much they can buy and sell, and you are not.

Myth #8 You Can Double Your Money with Options

Yes, you can do this in one trade and you can also lose your entire position in one trade. Like any leveraged instrument, you must use sound money management principles and limit your loss exposure to 2% or less per trade. In so doing you have the potential to make money with options, but in no way should you attempt or expect to double the value of your entire account overnight.

Instant Profits

Myth #9 Trading Futures is Risky

Yes, it is, but the risk is in the trader, as well as the market. A trader who misuses the leverage available in the futures market is asking for trouble. A trader who uses the leverage prudently, with sound money management principles, and does not overcommit on any one trade has the potential to control the riskiness in trading futures.

Myth #10 The Market is a Random Walk

Popularized by Burton Malkiel in 1973, this theory essentially states that the market is haphazard, arbitrary, and unbeatable. There have been and continue to be many successful traders who by their very success have proven this theory to be nonsense.

Myth #11 Market Analysts are Usually Right

The reverse is true. For various reasons, analysts are usually encouraging you to buy or hold, seldom do they tell you to sell. That is a problem (see #1 Buy and Hold is Safe). The prevailing view of the experts is usually wrong. In fact, the majority view for the coming year stock market performance by the top name analysts in the country (who you can see on TV every day) is almost never correct. That is because the market is simply un-forecastable, but with a good trading method it is beatable.

So there you have it! If you previously believed any of those myths to be true, hopefully Ive convinced you otherwise. If not, go back and read the above section again. This is key to being successful with Instant Profits.

Instant Profits

Action Exercises
1. Describe two reasons why buy and hold is not a safe way to trade. __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________

2. The riskiness of an open trading position is dependent on the use of good _______________________________ and trading with the ________________, not whether you are short or long.

3. Market analysts that you see on TV every day are almost always correct with their market forecasts. TRUE or FALSE?

Notes
________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

Instant Profits

Copyright 2005 by Profits Run, Inc. All rights reserved. Rev 15-20050110 No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Requests to the Publisher for permission should be addressed to Profits Run, Inc., 38271 Remington Park, Farmington Hills, MI 48331, 248-741-5939 (fax). Disclaimer: Profits Run Instant Profits is an impersonal educational stock and futures trading course, and therefore, no consideration can or is made toward your financial circumstances. All material presented within is not to be regarded as investment advice, but for general informational purposes only. Trading stocks, futures, and options does involve risk, so caution must always be utilized. We cannot guarantee profits or freedom from loss. You assume the entire cost and risk of any trading you choose to undertake. You are solely responsible for making your own investment decisions. Hypothetical or simulated performance results have certain limitations. Past performance is not necessarily indicative of future results. No stock, futures, or options system can guarantee profits. The risk of loss exists in stock, futures, and options trading. Profits Run, its owners, or its representatives are not registered as securities broker-dealers or investment advisors either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest with or without seeking advice from such an advisor or entity, then any consequences resulting from your investments are your sole responsibility.