Wednesday, June 17, 2009

Money as Tools

The subject about money will be always in big THREE priority in human's life.
When I saw my environment how to treat money, I concluded most of the time human used money as tools for survival and enjoyment aka consumption.

Here's some insight how you used money corelated with your prosperity:
1. Most people treat money like a rare resources. They focus on making money but neglected the value inside it. Money is simply an asset, like gold, stocks, painting, bonds, etc. The difference is money is the most liquid asset but also the most 'inflation victim' asset. So if you keep the liquid asset but didn't used it (saved it on CD, later you lose the value little by little).
2. Most people trade their time,power,emotion,knowledge for money. Very little trade their money for money. It's a little bit confusing. But how about this? You made some money and you made your money made money for you. Pretty logical huh?
3. Most people afraid to lose money. This is the biggest mistake we ever had. I mean It's okay to lose money. Money's just merely a tools. Money is an energy. They just switched hands. And if you lose money, you must get something in return, even it's just experience, knowledge, relationship and so on. If you've ever got robbed than you got something in return. Experience and knowledge.
So, if you lose money, don't forget to take lesson from the experience. And the price is never wrong.

How is the corelation between money and trading?
Trading = lose money
Trading = make money
Most people start trading with low capital and high leverage.
Most people don't want to lose money when trading.
Almost all elite trader today experienced loss money they can't afford that day.

It's okay losing money. Just keep it small so you had more classes to attend before you mastered it.

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