You only get rich by having valuable assets.
These days, when financial markets are booming and the world economic situation is not going well, many people are trying to become financial market traders in order to achieve their desired income. However, Niklas Göke, a leading economics writer at the medium, argues in his new article that trading can not make people rich.
“Never sell”; This is the advice that Carter Thomas wishes he had followed 20 years earlier.
In 2003, Carter invested all the money he earned from his summer job as a lifeguard in Apple stock. His total capital at that time was $18,000; A smart decision.
It did not seem like a wise decision for Carter [like most traders] to spend all his money two months later on unnecessary expenses or the purchase of luxury goods.
After splitting the stock (splitting the stock into more shares) and raising prices, Carter’s stock is now worth more than $10 million.
Looking at this experience, Carter has learned a simple but profound lesson that most people like him who want to make a fortune ignore that.
If I have not amassed great wealth, the only reason is that I have sold my assets. The reason for this is never that I did not buy the right things. I always bought the right things at the right time, but I never kept them enough.
You do not get rich by trading. You get rich with valuable assets.
Here’s the simplest two-step wealth model I know of:
1. You need to buy assets that you think are of high value.
2. You should not sell them.
Everyone thinks that choosing the right assets is the hard part, but in reality it is the stress of constantly struggling with immediate satisfaction that limits our ability and financial potential.