“The way it works is this: the rich sell for $8, which means the poor buys for $8. Then when the stock price decreases to $6, the amateur sells it back to the rich, who of course now pays $6 for it back. Then when the stock price goes back to $8, the rich sell it to the poor again, which means the poor pays $8 again. Then when the price decreases back to $6, the amateur gets nervous again and sells it back to rich for $6.
Believe it or not, this happens all the time and is one of the many reasons why the rich get richer and the poor get poorer. This is one of the main reasons for the need for education in the fields of business and investing. In Proverbs 4:7, the Word of God states “ Wisdom is the principle thing; Therefore get wisdom. And in all your getting, get understanding”. The sad part is that amateur investors often have neither and think that God is speaking for his own health; But He’s not. He’s speaking for ours…”
The Rich have plenty of money to invest, and more.
When they have passive income much more than they need to spend, they start to have surplus of invest-able funds or Capital.
Having enough CAPITAL at bay, they can afford to wait for the right timing to buy cheaper. And they can afford another wait until the price reach higher than their buy costs. When the right time comes, they sell and take the profits.
On that process, they were able to increase their Capital and so they get richer. They then wait again for the next cycle to come to them. That’s Cool!
Very simple isn’t it? Indeed…. But!
It is the stage of having “Passive Income > Expenses” that is the most difficult part to achieve. A person wanting to be rich must first strive to get at that level and when he does, everything else will follow. Yes, easier said than done.
TIME, another important aspect. Experience and learning does not come overnight, it takes times to be learned and manifest as a character within.
“Some of the best lessons we ever learn are learned from past mistakes. The error of the past is the wisdom and success of the future.” Dale Turner
“Practical wisdom is only to be learned in the school of experience. Precepts and instruction are useful so far as they go, but, without the discipline of real life, they remain of the nature of theory only.” Samuel Smiles
“Wisdom and understanding can only become the possession of individual men by travelling the old road of observation, attention, perseverance, and industry.” S.S.
Being patient and persevering will work in favor of a person wanting to reach greater highs. Because as time passes by, plenty of learning experiences will be brought upon them. No one wanting to rise higher will be spared from trials and challenges, from temporary defeat and sufferings. Only those who persevere and kept on trying shall achieve WISDOM, to realize anything that they desired.
That is the formula to get RICH, the TRUE RICHES that will be retained for long term and not the RICHES that easily comes and easily goes.
Now, Do you still want to get RICH?