The scariest people that stocks, futures, forex and commodities traders have to deal with are the "predictors." Usually, these are the talking head "experts" on television, who claim to know exactly where a market is headed. If you are trading any instrument at all, you absolutely need to avoid these folks. So, who are they, why are they popular, and why should you avoid them?

Who Are Predictors?

Predictors are people who, obviously, predict - or more aptly put - TRY to predict, the future. Whether it is the direction of the stock market, the price of cattle or interest rate calls, there is no shortage of people willing to state their opinion.

What is really harmful is that many of these people are on television, radio or the Internet. So, they have an illusion of authority, of knowing more than you or I. They sound exceedingly believable, and part of you may feel uneasy doing the opposite of what they say. After all, they wouldn't say it unless they believed it, right?

But, the simple fact is probably 95% to 100% of the predictors don't have any special abilities in seeing the future (maybe there are a few true predictors out there). They just are able to talk about it, with others listening. Think about it, if someone really knew they direction of the stock market day to day, wouldn't they soon be the richest person in the world? It is akin to psychics who go out of business - shouldn't they (of all people) have predicted they would fail before they started?

Why are Predictors Appealing?

Let's face it, the world is a complicated and chaotic place. Downright scary, even. Most events seem random, and that makes nearly everyone uneasy. The people who predict, however, come across as confident and all knowing. That type of person can be reassuring in stressful times.

The problem is, the predictor doesn't have the actual ability that he or she claims. What is even worse is that the more boldly some pronounce their predictive powers, the less likely they are to be right.

Why You Should Avoid Predictors

NO ONE CAN CONSISTENTLY PREDICT THE FUTURE. YOU WILL GO BROKE ACTING ON PREDICTIONS. (Repeat this aloud 3 times)

How To Handle Predictors

The simplest way to deal with predictors is just to ignore them. Tune out the talking heads on TV and so-called experts on the Internet. Trade without relying on the predictive ability of either yourself or someone else. It is hard to do this while you are in the middle of a trade, but it is essential to your long term success.

A good trading system that responds to the market, rather than predicts the market, is an excellent first step. Combine that with proper money management and risk management, and your chances of success go up enormously.

And that's not a prediction.