- Preparation: If you put yourself in the best possible position and you lose money at least you spent that money wisely. Good things happen to those that are prepared because 90% of people do not know how to do it or are unwilling.
- Purpose: Acting with purpose. You prepared, you knew the risks, you executed the way you wanted to execute. In cold blooded evaluation you would do it the same with the information you had at the time.
- Protection: Losing the invisible money is how I have seen many people blow up. Invisible money is not locking in profits or losing more than your plan allowed. If you lose what you intended to risk you own the trade, if you lose more the trade owns you.
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rssThe Flow Of Money Explained
Money and investment capital are very picky things. They are constantly flowing from those who know how to manage it, to those who do not. Money is not static, it is in constant flux. This is why a person that starts out poor in America can end up wealthy, and also why generational wealth can dissolve in one generation due to bad management. The flow of money is why a lottery winner that wins a jackpot and does not know how to manage it can quickly find themselves in bankruptcy. No amount of money will overcome consistently bad decisions. In a free market, capitalistic system, money flows continually to those that create value and away from those who do not.
- Money leaves those who risk it’s loss too many times, and ends up with those that protect it and make it grow.
- Money flows from consumers of goods and services to the owners of the businesses that provide the right products.
- Money flows to entrepreneurs when they create desirable goods and services. Money flows away from consumers that do not have self control.
- Money flows to employees that develop skills that employers will pay a premium for. Little money flows to employees that lack skills, or the work ethic to attain them.
- Money flows from customers to businesses.
- Money flows to innovators and away from outdated, stagnant businesses.
- Money flows to well managed businesses and away from mismanaged ones.
- Money flows from bad traders to good traders.