Two Kinds of Knowledge

Very simple. There are two kinds of knowledge that can be acquired. One is General knowledge which is derived from schooling/college, etc. The other is Specialized knowledge that's acquired from learning a very specific skill.

 

General Knowledge, know matter how much of it you have or how much schooling you've been too really does very little for you in the long run as far as financial abundance. College Professors make very little money, yet they are considered very very educated human beings. They have learned a great deal of all around knowledge or know a lot about a particular subject.

 

Why is that?

They specialize in the teaching of knowledge, but they don't teach you how to use that knowledge. The idea is, "ok, here you go. I've taught you what I know, go make it happen" How do I make it happen? What do I do? All I know is what I've been told about what I need to know, I don't know how to use what I know.

Simply being educated will not produce financial results. You can be an Einstein but if you don't know how to organize your knowledge and direct it to a definite ultimate goal, you'll be floundering.

 

I'm sure back in elementary or even H.S. and College you'll see "Knowledge is Power" That's such bull crap I want to puke. Knowledge is not power.

 

• Knowledge = Potential Power
• Knowledge + Action = Power

 

Yet, no one will teach you anything about how to put things into Action. Institutions fail to teach students how to organize their knowledge and build a plan towards a definite goal. The missing link to creating Power and Financial freedom is putting your acquired knowledge into action and striving non stop towards a concrete end.

 

An educated man is not someone who has a huge amount of knowledge but one who has developed parts of his mind to the point where he may acquire anything he wants or it's equivalent without violating the rights of others.

Words of Wisdom

-Proper money management is essential at all times.

-Remember, tips are for suckers! Never take tips and never give tips.

-Use a system with rules and don’t break the rules.

-Never buy a stock because it looks cheap compared to its recent high.

-“Stocks are never too high to buy and never too low to sell.” – Jesse Livermore

-Don’t take losses personally and never blame the market for your mistakes.

-Never average down. Don’t put good money after bad.

-Sell stocks showing losses and keep stocks showing profits.

-The market has two sides; the right side and the wrong side.

-The right side will always show you a profit.

-Stick to your game and keep emotions at bay by believing in yourself and judgments.

-Cut all losses short and quick, don’t allow losses to grow.

-Check your pride at the door and admit when you are wrong, don’t argue with the market.

-Form a plan for each stock that you plan to purchase.

 
-Develop an exit strategy for each stock before your purchase.

-Perform post analysis on all of your trades.

 

-Study, Study, Study. Make a goal to look at a certain number of charts each day.

 

-It is wise to remember that you are not competing against other traders. You are competing against yourself. If you are not at the top of your game when you play, the probability that you will beat yourself increases.

 

- In almost any other profession there is a range of performance across all participants. Not everyone in a profession is a top performer, but in most professions you can earn a paycheck without being a top performer.

 

-The trader who tries to do it all, all the time, is the one who will make a mistake. Don’t be that trader. Know when to take a break.

 

-We hope for consistent positive results, but until we discover our personal winning trade method, we will have losses.