Why The Math Doesn't Always Work

I'm not going to go into length about this because it's SO SIMPLE.

The MATH doesn't always work because currency is driven by PEOPLE!

Currency is NOTHING if people don't give it value. If there is no 'dominant' belief about currency, it's value/worth, then currency is value-less. PEOPLE decide, in the end, what currency means to them, what it should mean to others.

Think about it. A Silver Dollar has little 'practical' use. You can't paint your car with it (but you can paint your car with it if you give it away), you can't eat it (well, you shouldn't eat it) but you can eat by giving it away in exchange for a food item...

See what I am getting at? People assign value to currency and human emotions control how people feel about different kinds of currencies.

Does this help to make you realize why you can't just go find a 'Perfect System' out there and expect the Math to do magic so that you can become rich by being involved in the Forex industry?

All that has to happen in your perfect system is for someone half-way around the world to BECOME EMOTIONAL about currency, enforce some kind of 'power' and CHANGE other peoples' opinions about the value of currency.

Don't Fall For It!

A popular number that keeps getting tossed around both on and off line is the 10% figure.

This is the round estimate of how many people actually go bankrupt due to interacting in Forex and Trading markets.

This isn't the part I'm urging you not to fall for.

What I want you to be careful about is 'The Hype' - Don't Fall For It.

Common misconceptions about Forex:

* You'll get RICH almost overnight.
* If you can find that PERFECT system, you can be SURE to profit 75-80% of the time.
* There is a perfect system out there SOMEWHERE that will guarantee profit.
* You can turn $1000 into $100 000 in six months.
* You can learn to predict turning points, right down to mere minutes.
* You can quit your job and live in luxury after only a few months - and sustain a life of ease from Forex

One or maybe two of these statements have happened before. A few people DO, in fact, find themselves able to quit their day job after only a few months. This is an exception.

Let me tell you a little about 'marketing,' if I may:

If there is 1 person who has succeeded in rapid, explosive fashion online through Forex or any other money-making activity, then somehow a true statement of 'I made Thousands of Dollars within 3 months and quit my job and bought a new house and... and... and...' Now that statement might be perfectly and honestly TRUE for 1 person.

AND THEN!

Internet Marketers all over the place nab that statement and start plastering it EVERYWHERE until the message about "1 Person Managed To Do This" becomes COMPLETELY FORGOTTEN! It becomes "YOU TOO CAN DO THIS!" Along with "Everyone Can Do This," and "Even Morons Can Do This." et al...

True, in a very theoretical and UNPROVEN way. In theory, if the exact circumstances can be entirely replicated, then MANY people SHOULD be able to do the same actions as the 1 Hugely Successful individual and gain the same positive results.

But seriously...too many variables are involved, and 'theory' in THIS AREA is just not good enough - so DON'T FALL FOR THIS KIND OF FANTASTICAL THINKING!

Forex is NOT a bunch of 'get rich quick' actions. To be successful with Forex, you will have to be more careful and calculated than with almost any other type of online business.

Yes - HIGH EARNINGS are possible and will probably happen in your situation several times (so long as you learn properly about what you're doing) - but along with HIGH EARNINGS, the MATH says that YOU WILL HAVE TIMES OF LOSS!

Human beings tend to block out the negative aspects of certain circumstances and only project 'the good' experiences, particularly if they are communicating with others. This isn't an opinion. Check any good psychology book - try a University text if you like - and check this out. You'll find this 'tendency' in areas that explain 'filtering' and 'memory fallibility.' This tendency to block things that might be seen in a bad light - and promote 'positive' experiences is also what allows marketers to promote scams, tell outrageously enhanced and altered versions of the truth. Our minds want to have POSITIVE OUTCOMES COME TRUE, no matter what warnings we receive.

If you continue in educating yourself about Forex (and keep in mind that even the 'Experts' engage in the act of 'studying,' 'testing,' 'evaluating,' - in essence, they are continual STUDENTS of Forex, too), you will come to realize how fallible STRONG CLAIMS are in this business. If you continue to educate yourself about Forex, you will also learn how to trade in a calculated, careful, but confident way.

This is your goal - to have enough confidence, knowledge, calculation experience and common sense in the Forex market to be able to earn money.

Set REASONABLE goals. Keep up on your education. Take care of your emotions concerning 'prosperity' - and you'll do a LOT better than if you buy in to all the HYPE!

Don't let yourself fall into that "10% Bankruptcy" category. TEN PERCENT is a LOT!