What Is the Price of Becoming Rich?

There are many ways a person can become rich, and each one has a price.

You can become rich by marrying someone for his or her money. You can become rich by being a crook, a cheat, or an outlaw. You can become rich through inheritance. You can become rich by winning the lottery. You can become rich by being a movie star, a rock star, a sports star, or someone outstanding in one field or another. You can become rich by being greedy. You can become rich by being cheap. You can become rich by being financially smart. Or you can become rich by being generous.

The price of being financially free requires time and dedication to gain education, experience, and excessive cash (Three Es).

You know you are financially smarter or increasing in sophistication when you can tell the differences between:

1. Good debt and bad debt.
2. Good losses and bad losses.
3. Good expenses and bad expenses.
4. Tax payments versus tax incentives.
5. Corporations you work for versus corporations you own.
6. How to build a business, how to fix a business, and how to take a business public.
7. The advantages and disadvantages of stocks, bonds, mutual funds, businesses, real estate, and insurance products as well as the different legal structures and when to use which product.

Most average investors know only of:

1. Bad debt, which is why they try and pay it off.
2. Bad losses, which is why they think losing money is bad.
3. Bad expenses, which is why they hate paying bills.
4. Taxes they pay, which is why they say that taxes are unfair.
5. Job security and climbing the corporate ladder instead of owning the ladder.
6. Investing from the outside, and buying shares of a company rather than selling shares of a company they own.
7. Investing only in mutual funds, or picking only blue chip stocks.

To be a rich investor, you must have a plan, be focused, and play to win. An average investor does not have plan, invests in hot tips, and chases the hot investments products of the day flitting from technology stocks to commodities to real estate to starting his or her own business. It's okay to invest on a hot tip now and then, but please do not delude yourself that one hot tip will make you rich forever.

In addition to the Three Es, there are five Ds that were required to become very rich, especially when you start with nothing. They are:

1. Dream.
2. Dedication.
3. Drive.
4. Data.
5. Dollars.

Most people focus on the last two, data and dollars. Many people go to school and think that the education or data they gain there will get them the dollars. In other words, many people use the lack of education or money as their excuse for not being rich.

In reality, it is the focus on the first three Ds that ultimately gains you the data and dollars you need to become very, very rich.

In other words, the data and the dollars are derived from having a dream, being dedicated, and having the drive to win.

In my opinion, money is just an idea. If you think money is hard to get and you'll never be rich, then it will be true for you. If you think that money is abundant, then that can be true.

Trading for a living

You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody.

This is the life of a successful trader.

Many aspire to this but few succeed. An amateur looks at a quote screen and sees millions of dollars sparkle in front of his face. He reaches for the money -and loses. He reaches again -and loses more. Traders lose because the game is hard, or out of ignorance, or lack of discipline.

Dr. Alexander Elder