How to Get Rich: What the Rich Know About Trading That Gives Them an Edge
“I don’t have a lot of money right now, but one day I will have my picture in the newspaper”
-Warren Buffet-
Warren Buffett is a self-made billionaire; he is the third richest man in the world and has been for many years. In my opinion, this shows that trading is a great alternative to creating great wealth. Of course, when you do it the right way.
In this article I am going to reveal what, in my experience, is the main reason why some people cannot make money in the market, and what the rich know that gives them the advantage.
Markets move when they want to move
“Good earnings are simply not incompatible with good behavior”
-Warren Buffet-
Yes, you can trade to become a millionaire, but you must have financial freedom before you even consider starting a career as a trader.
Having financial freedom means that you have a reserve of money that will allow you to pay your bills no matter what. It also means that you have no debt.
The main reason why people lose money in the market is because they do not trade with a clear mind. They have bills to pay, and the money they use to pay those bills depends on the profit they make through their trades. This forces them to take excessive risks and trade at a bad time.
Let’s follow the example of the greatest investor of all time. Although Warren Buffett is a billionaire, he lives in the same house that he bought for $31,500 in 1958. He drives the same car that he bought ten years ago and his annual salary is $100,000.
This means that even if you lose billions, your lifestyle will not be in jeopardy. This gives you a clear mind for trading. And this mindset allows you to find opportunities that those traders who have their emotions tied to the market will never see.
Markets move when they want to move and it takes patience to make money in this business. Good earnings are not incompatible with good behavior. So as long as you have a system with positive expectation, in other words a system that makes more money than the money you lose, and you operate it consistently, you will be successful in this business.
One last piece of advice…
If you want to become a full-time trader, you must first learn how to spend your money wisely. This will allow you to achieve financial freedom very quickly and give you a solid foundation to amass a great fortune.