Thursday

Robert Kiyosaki Applying The Cash Flow Quadrant To Forex Trading


   Those of you familiar with Robert Kiyosaki's teachings will know about his "Cash flow Quadrant" book and how it goes into extensive detail with regards to 4 very specific groups that we people all fall under.
The 4 groups are called the cash flow quadrant and goes as follows:
   The Employee, the Self-employed, the Business owner and the Investor.
   The ideal quadrant for anyone wanting to get wealthy is to be under the Business or Investor quadrant.
Why?
Because it allows you to exploit leverage to its fullest potential, which means that you   can continue to increase your income by working the same amount of time (if not less) as opposed to an employee or self-employed person who can only make "x money per hour" worked.
Now, Robert Kiyosaki emphasizes continually on becoming an Investor because this is the quadrant that allows passive income to be generated. This is the end goal, to become an investor who can generate passive income no matter if he/she gets up for work or not (and This is my personal goal).
So in order for this to be achieved in the fastest possible way, Mr. Kiyosaki suggests you build and grow businesses to create cash flow which then allows you to "invest" and eventually become a wealthy "full-time" investor.
   You see, there is a false belief traveling the Internet whereby people tend to believe that trading is nothing more than a mere job, when in reality they don't have a clue how powerful this "alleged job" truly has on impacting their life's!
First of all, let's get something straight. Trading Forex can be anything you want it to be:
  • It can be a hobby (a very unprofitable hobby I may add).
  • It can be "just another job" (like many call it online).
  • It can be a business.
  • It can be an investment and wealth creation vehicle.
   If you understand HOW to structure your Forex trading correctly, you will be in for the biggest ride of your life Guaranteed!
   So bear with me as I first explain what exactly occurs and differs between the Business quadrant and the Investor quadrant:
   These "business systems" are nothing more than step by step rules and parameters that the employee must adhere to on a consistent daily basis, also known as "jobs". Some of these rules could be:
  • The days the employee works.
  • The time the employee works per day.
  • The full responsibilities of the job held, whatever the business may be.
   In exchange for this, the business owner will pay the employee a salary, meanwhile the business owner creates cash flow that then allows him to "invest", with the ultimate goal of creating residual income.
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