Thursday, November 22, 2007

FOREX - is it right for us ?

FOREX, the acronym for Foreign Exchange. My hubby has ventured into this since few months back. He has not withdrawn any earning yet from Forex, but so far he has managed to keep the very least of his capital sum.

I had a very bad news from my hubby yesterday that he has lost US$4500 in just 3 days.. What the hell is going on? Imagine how much would it be in Malaysia Ringgit... MYR15,000 in 3 days ?? I can't believe my ears when he told me this...

He has been overconfident with his instinct and waited for the market to favor his direction. This caused his positions being fallen too far from the market price. Yes, I mean positions here -- it's not typo error. He has been using 2 contracts for the trade. Oh My Goodness.

I wonder how could he be overconfident since he has yet making any good money out of Forex. What makes him think that his instinct is accurate -- I think even an Forex expert would ever trust his instinct in Forex Trading.

I kept asking myself last night, am I making a wrong decision to give the green light for him to venture into this 'business'. I started to feel that it's just another casino game in a way. When you lose, you wanted so bad to recoup. When you win, you wanted more and the greed comes in - and you start to become hopium -- always hope for more.

Now, the only thing that we can do is to keep calm and think straight. We don't want to create another problem here -- family quarrel, problem. He will still continue the Forex trading but using mini contract. I have suggested to him to take a break from Forex for just few days, take his mind off for a while to avoid emotion to set in, which will affect his judgement.

But he thinks he can manage and control himself and agrees to trade using demo account for temporary. I know how bad he feels, he can't say enough sorry to himself and to me, to the family. I feel the same too, but I do not know what to tell him to comfort him. Time... I believe both of us need more time to recover from this...

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