| p>Day traders and other investors everywhere | | | | rate. So what does the "true" unemployment rate |
| are being misled by the very organization that we | | | | look like, once you eliminate the seasonal |
| are trusting to lead us out of the current | | | | adjustments, and you consider ALL categories of |
| economic predicament that we as a country, | | | | unemployed and underemployed workers? How |
| even a world, have found ourselves in - The | | | | does 18.0% sound to you? |
| United States Government. And those who want | | | | That's right, the non-seasonally adjusted, "true" |
| to position themselves to take advantage of the | | | | unemployment rate, including ALL categories of |
| resulting market turmoil will learn day trading | | | | the un- or under-employed, is a whopping 18.0%. |
| strategies of success. | | | | And it increased by 0.9% from December 2009! |
| You've no doubt noticed the rising unemployment | | | | That's a far cry from the 9.7% released by the |
| rate over the past year. In recent months, the | | | | government. The data released earlier this month |
| unemployment rate has crested 10%, and most | | | | would have you believe that the economy must |
| recently, dipped back down below 10%, to 9.7%. | | | | be improving. But if you look at the real data, |
| However, the unemployment rate that is released | | | | how could you possibly conclude that? How could |
| by the Government is not the "true" economic | | | | you really believe, after critically considering this |
| unemployment rate. | | | | data, that the Economy is headed in the right |
| In fact, it's downright misleading. And it is meant | | | | direction? |
| to be. | | | | So the question then becomes, WHY does the |
| Consider this - in the most recent unemployment | | | | government calculate and release the data in this |
| data release, the so-called economic "experts" | | | | format? Are they purposely misleading the U.S. |
| predicted a job GAIN of 10,000 jobs. But instead, | | | | citizens and investors? Hopefully it's not something |
| we actually lost another 20,000 jobs. And despite | | | | that sinister. But it could be. The general public will |
| the job loss, the "unemployment rate" actually | | | | at some point wise up to the unemployment |
| DROPPED from 10% to 9.7%. So ask yourself - | | | | shenanigans, and will realize that despite the falling |
| how is it possible that the unemployment rate | | | | unemployment rate, the economy really IS NOT |
| would DROP when we had a net LOSS of 20,000 | | | | improving. |
| jobs? | | | | And when that realization hits, the traditional, |
| How could we lose jobs, and also reduce our | | | | buy-and-hold investors will panic, start selling off |
| unemployment rate by 0.3%? The answer is very | | | | stock, and we could be facing another market |
| simple - the "unemployment rate" released by the | | | | collapse. For a traditional long-term investor, the |
| government isn't the true "unemployment rate". | | | | true unemployment rate should make them |
| The unemployment rate that you are most likely | | | | shiver in their boots, should keep them awake at |
| familiar with doesn't include all categories of the | | | | night. However, many day traders are absolutely |
| unemployed. And the figures have also been | | | | GIDDY about the unemployment rate data. Not |
| "seasonally adjusted", which artificially skews the | | | | because they are bad people that enjoy watching |
| data. | | | | others suffer. |
| If you visit the Bureau of Labor Statistics website | | | | But because a day trader recognizes that wildly |
| and actually research the economic data yourself, | | | | fluctuating economic data and also misleading data |
| you'll discover that, while the "seasonally adjusted" | | | | that will eventually become public knowledge will |
| unemployment rate is 9.7%, the "not seasonally | | | | create the V word (which is universally LOVED by |
| adjusted rate" is actually 10.6%, as compared to | | | | day traders) |
| the "not seasonally adjusted rate" in December | | | | VOLATILITY |
| 2009 of 9.7%. So did the unemployment rate | | | | Volatility, to the average, every day investor is a |
| really drop 0.3%? Or has the data been | | | | very, very bad thing, and creates massive risk, |
| manipulated to paint a better picture than reality? | | | | and potentially leads to massive losses. Traditional, |
| But the unemployment shenanigans don't end | | | | buy-and-hold investors like nice smooth, slow, |
| there. In fact, the "seasonal adjusting" factor is | | | | gradual (upward) movement. Volatility to a |
| just the beginning! The unemployment data | | | | traditional investor can be very straining mentally, |
| released by the government doesn't actually | | | | and often leads to the disgusting phenomenon |
| include ALL unemployment - they conveniently | | | | among long-term investors of "buy high, sell low" |
| leave out several key categories of American | | | | (which is, of course, very opposite of what the |
| workers. For example, the data fails to include a | | | | goal is). |
| group called "marginally attached to the labor | | | | However, a day trader LOVES volatility, because |
| force", and a subset of this group called | | | | they recognize what it represents. |
| "discourage workers". | | | | In fact, a day trader would spell Volatility like this: |
| People who fit into this category would include | | | | O-P-P-O-R-T-U-N-I-T-Y |
| those who have searched for a job, who want a | | | | A seasoned day trader will recognize the huge |
| job, but who are not "actively seeking a job". | | | | profit potential, the massive opportunity that |
| People who have become so discouraged that | | | | wildly fluctuating (i.e. volatile) markets represent...IF |
| they have (at least temporarily) given up. The | | | | they know what they are doing. If they learn day |
| government would have you believe that these | | | | trading strategies for success. Of course, an |
| groups should not be included in the | | | | inexperienced day trader will get eaten alive by |
| unemployment data, because they aren't actively | | | | volatility - the market will take them down faster |
| looking for work. | | | | than they can blink. But those who learn day |
| But this group is still in many cases receiving | | | | trading, and then find effective strategies for |
| unemployment compensation, and they are still | | | | dealing with volatility, and remain disciplined, will |
| creating a drag on the economy. Just because | | | | discover that the wildly fluctuating markets |
| you aren't actively looking for a job does NOT | | | | caused by economic turmoil, such as rapidly |
| mean that you are no longer "unemployed". Also, | | | | increasing unemployment (about which we are |
| the government's interpretation of unemployment | | | | being misled) will create day trading profit |
| doesn't include those workers who are | | | | opportunities that a traditional investor can only |
| "economically unemployed", or the | | | | dream about. |
| "underemployed" - people who WANT and NEED | | | | But you MUST learn day trading strategies that |
| full-time work, but have had to settle for | | | | are effective in periods of high market volatility. |
| part-time work because there is nothing else | | | | And you must learn to think critically for yourself, |
| available. | | | | and don't just take news stories and |
| These people cannot live on their current incomes. | | | | announcements at face value. |
| But because they do in fact have a "job", they | | | | Even if they are being released by the United |
| are not included in the "official" unemployment | | | | States Government. |