Why Wealthy People Make Good Traders – Has Nothing To Do With Money!

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You want to make money.

You want that security and lifestyle that comes stress free. So why does it seem such a slog to get there?

After all, thousands manage it each day. Many of which do it over and over again?! That alone means it can’t just be through sheer luck! So what’s so different for them?

I rarely watch TV at all these days, I generally just find it a waste of time. But this week, purely by chance I stumbled across a TV episode that well and truly caught my attention…

I would highly recommend it as one to watch. You may need to find a spot to watch it though at an hour-long!

If you’re outside the UK you probably wont be able to watch it via BBC IPlayer. It’s on YouTube here:

https://www.youtube.com/watch?v=ncOaG2QPyos

For those that don’t want to watch it (if you do maybe read the rest of this post after).

I couldn’t help but thinking about traders, in particular Warren Buffet.

The guy Alfie that features in the show’s attitude is remarkably different to those that are at the other end of the spectrum. This seems to be the case for many of the best traders and wealthy people I know.

For the self-made millionaires and extremely wealthy, not are they interested in making a lot of money. But they see how important it is to preserve what they have. Not over-spending in the process.

Don’t get me wrong they spend! But well within their means. Decisions also seem to be swayed towards value and ‘assets’ rather than depreciating items.

Obviously this isn’t the most appealing thing to someone who wants a better lifestyle initially. Although it certainly seems to pay off sooner or later!

This quote by Mr Buffet was one that sprung to my mind more or less straight away;

“Wether we’re talking about socks or stocks, I like buying quality merchandise when it’s marked down” – Warren Buffet

Having this kind of ‘wealthy attitude’ seems to be an asset in all walks of life, but most of all in the markets! It’s not about just winning….. 50% of the game is not losing.

6 thoughts on “Why Wealthy People Make Good Traders – Has Nothing To Do With Money!

  1. I was told a long time ago rich people buy assets whereas poor people will always buy liabilities, always try and instil that mentality into my kids as it’s served me well. Doesn’t mean you have to scrimp on the finer things in life but just don’t caught up in the pointless ‘keeping up with the Jones’s’ mentality so many people feel the need to.

    1. Couldn’t possibly agree more mate… Something I’ve started to drop in quite early with my own children. I cringe when people drum those horrid saying’s into their kids like ‘money is the route of all evil’…it’s almost like anti-programming for them!

      1. It’s the LOVE of money that is the root of all evil, not money itself. This LOVE gives rise to fear and greed in the markets. Definitely something to be overcome in oneself.

  2. A fantastic book to read is secrets of a millionaire mind by T harv Eker. This book which i have read numerous times goes into the psychology of why some people can make money and keep it whilst others make money and lose it faster. It is all to do with our programming negative sayings like ” money is the root of all evil etc…” are stored in the sub conscious mind which will make it hard for that individual to keep hold of money as he thinks it is evil to have lots of money. I have read quite a few self help books but this by far is my fav, has anybody else read this and if so what did you think?

    ian

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