International Investments – Making Millionaires from Investing Emotions

by | Oct 25, 2006 | Archives

International investments fight inflation brought on by change.

Change can come quickly…and does. Knowing this fact can make you a millionaire.

This thought came to mind as Merri and I hiked over a deep ravine on a train trestle with our daughter Francesca.

Many readers write in and tell me how they plan to speculate in currency (or other commodity) futures, based on programs they have tested on paper.

Studying markets in advance is great but ….for those who plan to then move forward and speculate…may I suggest…buy a 12 foot two by four board.

Lay it on the floor. Walk on it. All 12 feet. Unless you have an inner ear problem, or other mobility issue, walking the board is easy.

Now go find a 100 foot chasm like the one below. Lay the board across the rift. Now walk across the board over the drop. It’s the same. Right? Can your emotions ignore the drop? Probably not. Mine certainly can’t!

Actually do not do this! Hopefully the point is clear without the risk of death from a headlong plunge. The 12 foot walk is easy on the ground. Over the chasm it could be impossible……because of emotion.

20% of good investing with real money is knowledge…80% is emotional control.

My experience suggests that 20% of investors look for change, calculate what the new horizons might bring and invest based on inner beliefs they stick to. They do not get caught in the emotions of greed when markets rise. Nor do they panic in the emotion of fear when markets fall.

80% of investors invest emotionally and lose.

Until next message, embrace change and embrace the reality of your emotional circumstances. Adjust your investing style accordingly.


P.S. Learn conservative ways to speculate on currency shifts. See

Learn more about how to develop investment beliefs at our next International Investment & Business Course in Cotacachi this November. Join Merri, me and Jyske Bank next month. (We only have 5 places left.) Learn upcoming economic conditions that could create distortions and trends.

Stay on for our Mystical Andes tour. Meet the architects from Barro Viejo, enjoy their practice of building natural homes and see their homes in Cotacachi.