Comments on: Working Out Your Money Muscles http://www.dragosroua.com/working-out-your-money-muscles/ The Personal Development Blog Thu, 09 Feb 2012 13:42:35 +0000 hourly 1 http://wordpress.org/?v=235 By: dragos http://www.dragosroua.com/working-out-your-money-muscles/#comment-32402 dragos Sun, 08 Feb 2009 06:48:01 +0000 http://www.dragosroua.com/?p=1525#comment-32402 @BunnygotBlog having a "side business" it's a great way to diversify your investment portfolio with minimum risk. Thanks for commenting here. Again :-) @BunnygotBlog having a “side business” it’s a great way to diversify your investment portfolio with minimum risk. Thanks for commenting here. Again :-)

]]> By: dragos http://www.dragosroua.com/working-out-your-money-muscles/#comment-32400 dragos Sun, 08 Feb 2009 06:43:07 +0000 http://www.dragosroua.com/?p=1525#comment-32400 @Jonathan: thank you for commenting here, I appreciate it. And yes, the gap between your creation and your reward can be long sometimes. But the reward always come. That I know for sure. @Jonathan: thank you for commenting here, I appreciate it. And yes, the gap between your creation and your reward can be long sometimes. But the reward always come. That I know for sure.

]]> By: BunnygotBlog http://www.dragosroua.com/working-out-your-money-muscles/#comment-32399 BunnygotBlog Sun, 08 Feb 2009 06:42:48 +0000 http://www.dragosroua.com/?p=1525#comment-32399 Like I said before I rather put it back in to the business then spend it on extravagant material things. At least not everyday, any ways. I like buying property, personally. Some may say that it is a safe investment but I also have my little side businesses that are still being nurtured. I love the what you say about money muscles. It is very true. Cheers Like I said before I rather put it back in to the business then spend it on extravagant material things. At least not everyday, any ways. I like buying property, personally.
Some may say that it is a safe investment but I also have my little side businesses that are still being nurtured.
I love the what you say about money muscles. It is very true.
Cheers

]]> By: Jonathan - Advanced Life Skills http://www.dragosroua.com/working-out-your-money-muscles/#comment-32353 Jonathan - Advanced Life Skills Sat, 07 Feb 2009 23:29:01 +0000 http://www.dragosroua.com/?p=1525#comment-32353 Some years ago I learned that (for me at least) focusing on creating value opened the money flow, whereas focusing on money prevented the flow. These days, I put my time and effort into creating value and let the money thing take care of itself. This approach can be scary at times because there is often a lag between creating value and being rewarded for it. But experience has proven that it all works out in the long run. This is a great post and your gym analogy is a good one. Some years ago I learned that (for me at least) focusing on creating value opened the money flow, whereas focusing on money prevented the flow. These days, I put my time and effort into creating value and let the money thing take care of itself. This approach can be scary at times because there is often a lag between creating value and being rewarded for it. But experience has proven that it all works out in the long run. This is a great post and your gym analogy is a good one.

]]> By: dragos http://www.dragosroua.com/working-out-your-money-muscles/#comment-32215 dragos Fri, 06 Feb 2009 18:07:41 +0000 http://www.dragosroua.com/?p=1525#comment-32215 @io_da wow, a lot of insight from somebody who clearly has played this game a lot. I really dig your "historically proven" sentence about 10 years for a million and another 10 for 10 millions. I really dig it :-) @io_da wow, a lot of insight from somebody who clearly has played this game a lot. I really dig your “historically proven” sentence about 10 years for a million and another 10 for 10 millions. I really dig it :-)

]]> By: io_da http://www.dragosroua.com/working-out-your-money-muscles/#comment-32212 io_da Fri, 06 Feb 2009 17:48:04 +0000 http://www.dragosroua.com/?p=1525#comment-32212 Playing the “money game” in the stock market for more than 10 years, the lesson for me was that, there are always two types of “money plays” that have to be distinguished: A short play: is when the short term outcome is more visible. Is like investing in Romanian real estate in the early 2000’s. The trend was so clear, it was almost impossible not to make money in the short term. The key here is “short”. Even though the temptation is to increase your gains for longer terms, you have to let go of them. Just take a smaller profit for 1-2 years at the most and run! A long play: is when you can see the creation of the value after a longer period of time. Is like your paper magazine investment. In short term is very likely you will take a dip from the short players. Maybe is a business partner that is playing short and he wants his money back so he can invest in short term investments. In stock markets, you can short the longs by borrowing their shares and selling them back at a lower price and you keep the difference (called "short selling", and it allows you to make money if your bet that the price is going down is correct). Going long term takes a lot of faith and discipline, but is also more rewarding. It is about winning your own battle with these two powerfull emotions: greed for more and fear of loosing. 10 years, is by definition a “long” play and historically has been proven that is the time frame when wealth starts compounding and leveraging itself. If you hit the 1 million mark in 10 years, almost automatically you will be embarking for the 10 million journey in the next 10 years. Unless the greed and fear takes over and you will not resist the temptation to switch to a short play. Playing the “money game” in the stock market for more than 10 years, the lesson for me was that, there are always two types of “money plays” that have to be distinguished:

A short play: is when the short term outcome is more visible. Is like investing in Romanian real estate in the early 2000’s. The trend was so clear, it was almost impossible not to make money in the short term. The key here is “short”. Even though the temptation is to increase your gains for longer terms, you have to let go of them. Just take a smaller profit for 1-2 years at the most and run!

A long play: is when you can see the creation of the value after a longer period of time. Is like your paper magazine investment. In short term is very likely you will take a dip from the short players. Maybe is a business partner that is playing short and he wants his money back so he can invest in short term investments. In stock markets, you can short the longs by borrowing their shares and selling them back at a lower price and you keep the difference (called “short selling”, and it allows you to make money if your bet that the price is going down is correct). Going long term takes a lot of faith and discipline, but is also more rewarding. It is about winning your own battle with these two powerfull emotions: greed for more and fear of loosing. 10 years, is by definition a “long” play and historically has been proven that is the time frame when wealth starts compounding and leveraging itself. If you hit the 1 million mark in 10 years, almost automatically you will be embarking for the 10 million journey in the next 10 years. Unless the greed and fear takes over and you will not resist the temptation to switch to a short play.

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