Don't Fall for the 'Porthole Effect' in the Oil Market

When I was standing shoulder to shoulder with all those other oil day traders on the floor of the NYMEX, once in a while I'd get a very funny feeling. All of a sudden, I'd realize that the position I'd built up for myself was largely shared by just about everyone around the ring -- and I also sensed that every other trader had had the exact same realization.

That'd be a wary moment -- staring around at each other like combatants in an old West quick draw. We'd all still be convinced in our positions, of course. We, collectively, could be entirely right on the coming trend and just need some patience to all make some money. But we also knew that the first guy to flinch in panic could set off a complete avalanche of traders suddenly becoming less convinced and trying to get out....659 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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