I always try to give investors some common sense analogies and conceptual ideas to get my point across. Why? Because no one likes to watch a techno geek pointing to lines on a chart, or sit and watch a financial commentator prognosticate what the next Fed move will be. To the average investor lines and squiggles mean very little, and commentary of what the Fed will or will not do border on a waste of time. While lines and squiggles may make sense for a few minutes, so do tarot cards from a fortune teller.

Unfortunately, most investors REACT to the "Surface Anatomy" of the markets, and fail to see the big picture of what’s really going on.

"Surface Anatomy" is used in medicine, and is a "study of the configuration of the surface of the body" in an attempt to figure out what is going on with the internal parts.

Investors often use "Surface Anatomy" when dealing with the markets by reacting to the hot news item of the day, or the latest economic report. This can be a very dangerous strategy, and one that has proven to successfully pick-pocket investors through the years.

So, why do so many investors listen and respond to Surface Anatomy?

1) They don't have the time to accumulate all of the facts before making an investment decision.
2) They are impatient, and always feel like they must be doing something.
3) They approach investing with a gamblers mindset instead of the mindset of a prudent investor.

As Jim Rogers once told me; "Investors always feel like they must be doing something. They just can't sit still and wait"