Robert Kiyosaki Applies the Cash Flow Quadrant to Currency Trading

Those of you who are familiar with Robert Kiyosaki’s teachings will know about his book “Cash Flow Quadrant” and how he goes into extensive detail regarding 4 very specific groups that we all fall into.

The 4 groups are called the cash flow quadrant and are as follows:

Tea Employee, the Free-lancers, the Company owner and the Investor.

The ideal quadrant for anyone wanting to get rich is to be in the Business or Investors quadrant.

Why?

Because it allows you to exploit leverage to its full potential, which means that you can keep increasing your income if you work the same amount of time (if not less) than an employee or a freelancer who can only earn “x money per hour” worked.

Now, Robert Kiyosaki continually emphasizes becoming an Investor because this is the quadrant that allows you to generate passive income. This is the ultimate goal, to become an investor who can generate passive income regardless of whether you get up to work or not (and this is my personal goal).

So in order for this to be accomplished as quickly as possible, Mr. Kiyosaki suggests that you create and grow businesses to create a cash flow that then allows you to “invest” and eventually become a wealthy “full-time” investor. .

So what the heck does all this have to do with Forex trading?

You see, there is a false belief traveling the Internet that people tend to believe that trading is nothing more than mere work, when in reality they have no idea how powerful this “so-called work” really has in impacting their lives. .

First of all, let’s clarify something. Currency trading can be anything you want me to be:

• It can be a hobby (a very unprofitable hobby, I may add).
• It may be “just another job” (as many call it online).
• It can be a business.
• It can be a vehicle for investment and wealth creation.

Understanding HOW to properly structure your forex trading will give you the best ride of your life. Guaranteed!

So bear with me, as I first explain what exactly happens and what differs between the business quadrant and the investor quadrant:

# 1 Business owners develop “systems” that contain employees for them.

These “business systems” are nothing more than step-by-step rules and parameters that the employee must consistently adhere to on a daily basis, also known as “jobs.” Some of these rules could be:

• The days the employee works.
• The time the employee works per day.
• All responsibilities for the work performed, whatever the business.

In exchange for this, the business owner will pay the employee a salary, while the business owner creates a cash flow that then allows them to “invest”, with the ultimate goal of generating residual income.

# 2 Investors create and own monetary systems that make them more money.

These “investment systems” are nothing more than entry, risk management and exit rules that the investor must adhere to in order to grow their portfolio over time in a systematic and professional manner.

Are you already starting to get a general idea !?

Currency trading, or any other type of trading, contains an amazing composition that many other types of businesses do not offer.

You see, in a home based Forex business, you automatically take advantage of 3 of the best quadrants, even if you haven’t realized it yet!

Now let me share with you how exactly this applies to your career in the Forex market:

The business quadrant:

The “owner” of the currency trading business develops a system so that his “employee” can do his “job.”

This system contains the hours worked per day, the days worked per week and the responsibilities of the position, that is, control and manage the risk accordingly.

The Investor Quadrant:

This allows the person to develop a money generation system that allows them to earn money with money.

He is also the owner of Forex Trading Business. This business is your INVESTMENT.

The Employee Quadrant:

This is the person who has the “risk management” job for the Forex Trading company.

You are paid a monthly salary for doing your job correctly.

But the good thing here is that YOU are the three quadrants, integrated into one.

You are the business owner that creates a cash flow that allows you to invest and earn more money.

You are the investor who invests money and makes even more money.

You are the employee who negotiates for the company and receives a salary.

The good news is that because you are the business owner, investor, and employee all rolled into one, you take full advantage of the leverage.

what does this mean to you?

1. You work a set number of hours a day, just like an employee does, with the difference that your income increases exponentially over time with no additional work involved.
2. You are the owner of a business that grows constantly and generates a cash flow that in turn allows you to invest.
3. You are an investor, with a business that generates constant cash flow, that you can now reinvest and earn even more money with your money.

Eventually, one of your goals should be to set yourself up as a correct business entity not only to protect yourself but also to take advantage of the huge tax cuts that the government grants.

So get to work! And remember, you are an investor with a positive cash flow business and a hard-working, performance-driven employee.