The foreign currency exchange (forex) is grabbing the attention of more and more curious investors–expecially the automated robot systems. Alert investors realize that just about anything else they currently have, from Qualified Plans and Mutual Funds to outright stock ownership, are all relate to the Stock Market, so that as the Stock Market goes, so goes their personal future. And they do not like what they see. Hence, the search for a better retirement, wealth building system.
In spite of the current market spike, when the average person compares their account balance with where it was a couple years ago, they realize they are not making headway. In fact, if their account followed the S & P, THEY HAVE ACTUALLY LOST 27% in ten years. So where else can they turn?
With the increasing national debt eating away at the economy, the surging bubble of aging needs coming with the 83 million Baby Boomer generation, and the possibility of a massive new tax burden and even a new Value Added National Tax, many are on the hunt for a better system. .
The huge Three Trillion Dollar a dayforex trading movement worldwide appears to be a solid option. The forex market magically has little to do with stock markets. Profits are made through the simple system of leveraging and buying and selling the currencies, and at first glance, enormous profits can be made quickly, so it appears. One can buy or sell any currency from the comfort of their desktop or laptop, all in relationship to another currency. If they play it right, protect their account and time the trades well, money can be made.
But brokers indicate that 95% of individual forex trading investors never make money. In fact, Wikopedia indicates that the average loss per foreign exchange investor before giving up the ship is $15,000–a bit hard to believe, but nevertheless, that is what the report indicates from brokerage surveys. You will never hear this from a salesman of a system.
Some say they can prove they made 100% in a month in forex trading . Others are not so outrageous, but make outlandish claims.
Some of our clients have shared stories of people they knew who did make some money, and then went on to lose it later. It got to be for them like gamblers at the crap table. Some lost their home, others have lost their parents retirement accounts.
So, with the dismal outlook for investments related to the Stock Market, with how easy the Foreign Currency System appears and yet with nearly everyone who tries fails, what is the single, common thread causing the failures? The primary problem is the trader, the human being herself/himself–one aspect in particular. The problem is the emotional make-up. We cannot get away from human participation, so it seems, so we carry the problem (ourselves and our emotional make-up) with us into every trade. Seems ironic! We are necessary but we carry the problem, even if but inadvertently. Next blog post I will discuss why trading foreign currencies can be the unquestionably, and absolutely best choice for investing if one uses a proven system that takes human emotion into consideration and overcomes it.
Dr Terry C Thomas
http://www.ET4Software.com
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