Sunday, July 25, 2010

Powerup Capital Review #36

Hi,

From my research I found that forex trading is a great tool to achieve capital gains in a  very short time. What do I mean by capital gains? Well simply put, capital gains is a matter of increasing the value of your money from a small starting capital into a bigger sum of money by buying or selling a currency. Forex trading is by far the faster way to achieve capital gains. Much much faster than stocks and options. Besides, forex trading is considered as a second income source on top of my working income.

Now capital gains may be good to multiply one's capital but forex trading alone is different compared to a cash flow  investment vehicle. An example of a cash flow investment vehicle is a rental property or a dividend yielding REIT (These are assets) . A rental property puts money into one's bank account  month after month but the value of the property does not gain much in value very rapidly.
 
So what I practice in my personal investment style is to place my capital gains from forex trading into rental properties which are my long term assets. By the end of the year when I have accumulated enough cash in hand from the cashflow from my rental properties, I would place the money back into my trading account to grow it at a much faster pace. So the cycle is to first invest in forex for capital gains and then back into rental properties that cash flow. Once you have enough assets that cashf low, you don't even have to trade forex anymore! Unless you choose to :)

For more information on the differences between capital gains and cashflow, I suggest you watch this video:


Live Below Your Means from Rich Dad on Vimeo.


God bless,
Ricky (Class of June 2010)
Bangkok, Thailand


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