The 7 Deadly Sins of FOREX (And How To Avoid Them)
Some 12 years on in my investment “career”, I sat down to reflect upon my
successes and failures. More to the point, I sat down to reflect upon the
causes of my successes and failures, for that information is always for more
important than the specific events which resulted. This personal reflection
was driven both by the desire to improve my future performance, but also by
the need to answer the age-old question, “What makes a good investor?” I
decided to consult the dictionary for a definition of the term:
1. To commit money or capital in order to gain a financial return.
2. To devote morally or psychologically, as to a purpose; commit.
I was fascinated by the definition. The concept of financial investment is an
interesting one for obvious reasons; everyone wants to know how they can
turn money they’ve already earned into more money. Unfortunately, this
desire to grow one’s after-tax dollars is all too often accompanied by
unrealistic expectations. Beginners to the game often hope for annual returns
in the hundreds or even thousands (!) of percent, and there are far too many
snake-oil salesmen willing to stoke those dreams with impossible promises.
To the outsider, investing often seems a dark, mysterious activity, shrouded
in secrecy. Success seems elusive, if not downright impossible. Names like
“Soros” and “Buffett” are oft-mentioned. Tips are exchanged in hushed
The 7 Deadly Sins Of FOREX (And How To Avoid Them)