Read time: 3 minutes
Wealth & Status?
A gold Lambogini?
All legitimate reasons we get into forex trading.
But I want to take a step back and get you thinking about how to make that happen.
Real wealth isn’t made by discovering the worlds best trading strategy or inventing the next Candy Crush Saga vs Angry Birds Rio.
Understanding and harnessing leverage is the key to creating real wealth. Do more, and make more, with the same resources (time or money).
“Financial leverage is the biggest advantage the rich have over the poor and middle class.”
Robert Kiyosaki – Author of Rich Dad, Poor Dad and all around fat cat.
100:1 leverage on your forex account allows you to earn/lose 100x using the same account balance, but that’s not the point of this article. I want to open your eyes to how you can use this simple principle to change your life.
Let’s look at an example of leveraging time.
As an employee, you’re selling your time to your boss.
Don’t kid yourself here… You trade your time for money, all the fancy dental plans and paid holidays do is mask the fact that your time is a commodity that the business uses to generate a profit.
If you went to your boss and said “Forget the dental plan and paid sick leave, just pay me more per hour” Do you think he or she would say yes? Of course. Because you’re sacrificing your entitlements, which are a cost to the business in return for additional pay.
Now, if you’re a regular Joe, working for the man, how much money can you make?
Let me ask the same question differently.
What is the most you think your time is worth on an hourly basis? $20/hr, $200/hr, maybe $2,000/hr?
Whatever the number, that’s your ceiling. The only way for you to make more money is to work longer hours. Sell more of your time in return for a larger paycheque.
But life doesn’t need to be this way…
Imagine if your income wasn’t dictated by the number of hours you work.
That’s what leverage can do – work less, do more. They don’t teach you this in school (but they should).
“It’s far more lucrative and fun to leverage your strengths, instead of attempting to fix all the chinks in your armour.
The choice is between multiplication of results using strengths, or incremental improvement fixing weaknesses that will, at best, become mediocre. Focus on better use of your best weapons instead of constant repair.”
Tim Ferriss – Author of The 4 Hour Work Week and mega smart dude
Harnessing the power of leverage is the only way to make a real difference. Presidents, CEO’s and Billionaires all use this simple principle to effect massive change in their status, within their companies and sometimes across the world.
How could you use the power of leverage right now?
- Start a business and employ people. Buy their time and leverage it for profit.
- Develop a profitable trading strategy, invite investors to allocate capital and leverage their money for your mutual gain. Is there that much difference between trading a $100k account or $1mil?
If you want to get rich, you need to start thinking differently to 99% of the population who dedicate their lives to selling their time.
Forget climbing the corporate ladder. Build your own ladder.
Successful forex traders leverage their skill and expertise through increased investment. When coupled with compounded gains, it makes for a life of freedom and abundance.
How can you use the principle of leverage to your advantage right now?
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