For over a thousand years the art of alchemy captivated the minds of men from all walks of life. It is the medieval forerunner of chemistry.
Nobles, monks, physicians, Kings, peasants and even a Pope heard the calling to the study of the transmutation of metals into Gold.
The Alchymists believed that metals were composed of two substances with one being metallic earth and the other being a red inflammable matter. The combination of these two substances created gold. Other metals were contaminated by foreign ingredients which led to their current state, and the study of alchemy was a search for knowledge on how to dissolve and neutralize these contaminating ingredients and hence transmuting lead, copper, iron and other base metals back to their original pure form… gold.
In order to accomplish this, they needed to find this secret knowledge, the golden key… The Philosopher’s stone.
Once discovered they would not only be enshrined with infinite riches, but they also would have succeeded in a life long calling, and be immortalized in the pages of history as one of the few to discover the philosopher’s stone.
Many educated and clever men spent years in search for the golden secret. Their time, their energy, whatever wealth they possessed, was burnt away in the cauldrons in their laboratory as they searched in vain. There was always some missing ingredient, a strategy not employed, a direction not followed that led to their continued failure. But they wouldn’t be denied.
History is littered with tales of wasted lives, wasted talents, along with your fair share of pretenders who embellished and exaggerated their pretended successes. As we look back at these men and their lives there is also another attribute that must be acknowledged – Their resolute and absolute belief that discovery of the golden secret was just within their grasp. This propelled them forward in their quest, year after year, no matter how many setbacks and failures they experienced.
So what is the point of this you ask and what does alchemy have to do with trading? My answer to you is that it has everything to do with the wealth earned via trading and is one of the core foundations of the 3PC trading program.
First and Foremost is the desire of the alchymists to acquire Gold. In modern day Finance in the West, gold is publicly ridiculed and shunned. It is called a barbarous relic with no place in the modern day world – at least this is what the Keynesians, Globalists and banksters want the citizenry to believe.
Here at 3PtCapital we have a much different view of gold.
Gold is timeless. It is nobody's liability. It is easily stored and transferable. Federal Reserve Notes are becoming less valuable by the second with the continued profligacy of the US Gov’t and endless printing of central banks. As a matter of fact, ever since the US Federal Reserve bank was created with it's power to manipulate the price of credit and the money supply, the US Dollar has lost over 98% of it’s purchasing power. It’s the one relentless trend that can never be stopped, and you don’t want to bet against.
No fiat currency has ever had a very long shelf life and its’ inevitable demise is always hastened by the money printers. Fiat comes and goes, but Gold is always there – steady, unmalleable, beautiful, and most importantly valued and recognized worldwide. If you want to go get a cheeseburger and fries take your greenbacks with you. But if you want to save and retain wealth that can be passed across generations then please pick symbol number 5 from the elemental table – go get some AU.
It’s never too late or too early to begin exchanging your greenbacks for Gold. Whatever savings rate you determine you want you should do so in a fully hedged position – So 50% cash and 50% gold/silver.
The Philosopher's Stone
Just as the Alchymists before us, traders have been in pursuit for the single key to their success.
And just as their search was in vain, so is that of most traders. The reason is because they are looking in the wrong place. The trader's focus is always on some new magical setup or signal that will enable them to predict the markets with uncanny accuracy.
If undertaken, this will be a search in vain, because no such magical formula exits.
Markets are driven by human action, driven by emotions swaying unpredictably on a second by second basis.
Price movement is a statistical distribution of random outcomes, and we will be discussing this in great detail in the next chapter. The Golden Key to trading resides in accepting this as fact. Once you do, you will not fall to the temptation of betting big on an outcome you "have to" be right about. You will manage your place betting professionally, and this will give you the required edge over 90% of the opponents you are up against in the trading arena.
Bet only when the odds are in your favor, but bet in size like they are not. This is the Philosopher's Stone in Trading.