It is change in the world that drive men to excel. Extreme volatility has everyone in the market jumpy and fearful but history seems to indicate that while some were losing their life savings, others made their fortunes. The only thing they did differently was to not be afraid of the change and they actually changed right along with it.
Whenever I have been asked how to begin to learn how to become a trader, I suggested that they start by reading a small book by Dr. Spencer Johnson called "Who Moved My Cheese". I will also suggest this to investors as well. Life is all about change, most of the time we call that change progress but sometimes it is a black cloud momentarily obscuring the view of the sun. The sun never leaves, it's still there, even in those dark times when our vision is obstructed.
When we begin to look around for solutions, we find that they are all around us. New ways to trade in a new market that came about because of unsatisfying changes somewhere else. A new need brings about a new cure. But those cures have been around all the time just waiting for someone to discover them. It's just that no one does until there is a need to do so.
Take for example the new ruling that prohibits Americans from trading with brokers that are outside the U.S. Many give up in defeat and quit trying to invest in profitable ways. Some try to adapt by forcing that square peg into a small round hole. Still others step back and look around. For over 200 years American businessmen have been starting businesses in other countries. McDonald's golden arches are recognized all over the world. Others have begun companies outside of the U.S. and they grew to be international corporations. Those companies most often hold and trade assets, invest and trade in what ever way it is legal and profitable to do so. The laws of the owner's country has no limiting effects on the foreign business because it has to operate under the laws of it's host country.
When it was illegal for Americans to own gold bullion, those that had overseas trust or businesses simply gave their gold to the overseas legal entity and it kept the gold for them. Was that legal? It was the citizen's property to do with what ever he chose until all the gold was confiscated by the government. He could stack it up, melt it down or give it away. Today's new restrictions are not all that much different. It is perfectly legal for Americans to open a business or trust in some other country and let that trust trade with what ever broker that they want it to. It can trade in what ever way it is legal for it to do so in the country where the trust or business is located.
It is also intelligent to hold some of your liquid assets in a legal trust so that if something happens in your home country that makes it undesirable to remain there, you have a head start by having some funds to go to. Doctors, lawyers and others who may be considered wealthy and a target for lawsuits almost always have a trust which is out of the reach of frivolous lawsuits.
So there are solutions to every problem when we begin to look for them. When things seem dark, the world is not ending, it's just raining. To keep from getting soaked, learn from your fathers. When the going got tough, the tough got going, some even to a new life in a new country. Desperation may have started them on their way but it was opportunity that drew them on. We are only defeated when we say we are. OK, it may cost an extra $1700 to start a trust but that is a small price for freedom.
What ever country that you live in, change is on the way. The world is growing smaller and we may need to move toward our opportunity. The best way to learn to become a talented investor is to begin with the book, "Who Moved My Cheese".
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