Tuesday, December 11, 2007

Dumbing Down America

Over the last several years main stream media has been fooling Americans into believing investments like CD's, money market accounts and 401ks are the best they could ever hope for. They have convinced people that a 5% CD or a 12% mutual fund is the best percentage rate available. Every once in a while the media runs a story about a "lucky" or "genius" investor who made a fortune with commodities, currency, or stocks and bonds. The media wants you to believe those people were special.

Guess what? Most of those people are just like you and I. Average, ordinary people who believed they could make more and became a student of the markets. What's more is there are countless individuals making huge profits trading the markets. Most of these people have little or no college education; they just studied the market they traded.

By attending trading events throughout the country I've met an astounding amount of people who have made over 100% a year and many that have even made 1,000% a year. I've even met a trader who made over 25,000% in three years.

Yet the media never talks about the high number of successful traders; they choose to focus you in on just the unsuccessful traders.

The successful ones are always "lucky" or "genius", suggesting profit in the markets is near impossible for the average Jane and the average Joe.

So, what about hedge funds and mutual funds?
The SEC has made it illegal for a hedge fund to speak about their fund to anyone who is not an accredited investor. So, all the media ever talks about is the small figure of hedge funds that lose money overall. This only keeps investors in the dark, unable to scope both sides of the story. In reality only five percent of hedge funds lose money, meanwhile over 40% of mutual funds lose money.

Mutual funds have only one direction they can trade the market: up. Hedge funds on the other hand can profit from the market moving down or upward. The media makes people believe the market is a scary place. What an eye-opener it was for me to find out the real success people have had with trading.

The Forex Markets
Europeans have been trading currency for over 200 years. Yet America was just deregulated in 1997 for speculators despite the fact that American banks have been trading currency in since the 1970's.

Did you know countless Fortune 500 companies make more money in Forex than the business that made them household names? Take a look at the financial statements available on their websites. Why is trading currency good enough for them but not for the "average" people like you and I? Because it cuts into their pocketbooks.

If you knew where to get 5% every month instead of 5% every year, do you think you would put your money with them? No, of course not!

You as an individual have the ability right now to make 5% profit every month in the market. You have to take the time to learn how and which markets the biggest profits are in. It takes time to learn but it's worth it. If you're unable or unwilling to spend the time to invest in your knowledge then investing mainstream is your best option.

I think it's safe to say most of you are like myself. Why invest your money gaining 5% annually when much better is readily available?