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Of course it goes without saying that it's important to weight train while losing fat in order to preserve muscle mass.
Preserving muscle mass isn't a very useful goal for fat loss, though it is important from a metabolic standpoint.
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What most overweight women are looking for is fat loss
Of course. The more muscle you have, the more fat you burn, which is why I weight train. Meaning, I don't want to just preserve muscle mass, I want to gain it, because that's the fastest and most efficient way to lose fat.
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-- and cardio - in my opinion and experience - is essential for fat loss.
Cardio (on machines or doing GPP as I described above) has its place for heart and lung health, but it is not the magic bullet for fat loss.
And I can assure everyone that there was nothing of luck involved in my weight loss. I had PCOS and a wretched family history of obesity, and was diagnosed as being pre-diabetic. For the first six months, cardio and weight training were adequate for weight loss, if somewhat slow. My problem became one of boredom, and I soon found I was drawn like a magnet to heavier weight training. It was a happy discovery that I can stick to that (incorporating some GPP) and lose fat at an even faster rate than before, provided I'm eating cleanly enough.
Gumbygirl, while I wanted to disagree (respectfully) with Meg, I recognize that she is a PT by profession and certification, and I am not. I can certainly understand if you want to take her word for it. And I would suggest reading this article by the famous Mistress:
http://www.stumptuous.com/cms/displayarticle.php?aid=37
Good luck to you, whatever you decide.