Wednesday, October 05, 2005

I'm watching...

From the last update, I was able to enter trades in Gold and Crude Oil.

As both markets have dropped since, I'm sitting quite pretty.

Fingers crossed, this should be a 2.7% and 0.8% return respectively.

It's crossed my mind on several occasions to make mention of the ridiculous claims that some investment guru sites make about returns.

I had a letter cross my desk the other day claiming trades of 1754% and 658% for two FOREX trades.

Although this makes great headlines, it doesn't necessarily make for long term profitability.

The worlds best investors return an average of 30 to 35% over ten to twenty years. George Soros, Warren Buffett, Ed Lampbert, etc.

Everyone needs to make their choices, but if you can make 1754% in a single trade - then by all means, give it a go. But history shows that over the long term, these guru's don't make the grade.

Getting rich slowly usually wins the day.

If you can make 2 to 5% per month, every month and understand your risks. You'll be richer far quicker than you think.

Murray