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After reading the book “Rich Dad Poor Dad” by Robert Kiyosaki, I came to realize that not only is there a rich and poor path in life but also a rich and poor path in options trading as well. Many options traders experience defeat in their options trading career, especially during the first few months, because they are unknowingly walking down the poor path in options trading. There are many differences in the approach winners take in options trading versus the losers and we shall outline and explore some of these in this article.

Rich Options Trading :

1. Speculative directional options trading using direct call or put options buying only with a small percentage of their fund and only on the stocks with the best chances.

2. Extensive use of Option Greeks in order to dynamically hedge a position when conditions change.

3. Always doubt one’s own conclusions and make provisions for losses.

4. Always have a stop loss policy already in place or in mind. Stop loss points can be in the form of contingent orders or trailing stop orders.

5. Understands the exact options trading style that suits them. Emotional options traders should stay out of day trading.


6. Know that there is no one best way to trade every single situation.

7. Do not chase after profitable trades that have been missed earlier on.

8. Satisfied with a steady, consistent gain.

9. Into options trading for the long run.

10. Think options trading education for a start.

11. “Trades” the market.

12. Keeps a trading log.

13. Learn from mistakes.

14. Understands technical and fundamental analysis.

Poor Options Trading :

1. Speculative directional options trading using direct call or put options buying with all their money hoping to hit a “big one” on stock picks taken from the TV or non-professional friends.

2. Has no idea what option greeks are at all.

3. 100% confidence! Full steam ahead!

4. Realize it’s too late only when it’s too late.

5. Follow whatever options trading style that is supposed to produce extra-ordinary gains only to completely break the rules and your pocket.

6. Stick to only one way of options trading for all market conditions and situations.

7. Missed a trade, watched the price go up and then enters it at that new high price only to see prices tumbling like a rock thereafter.

8. Always looking for ways to make more explosive gains from stock options only to have the dynamite eventually exploding in their face.

9. Start options trading with the purpose of quitting after hitting a big profit.

10. Think money making for a start.

11. “Plays” the market.

12. Forgets the last trade made.

13. Hates mistakes and tries to forget mistakes.

14. Mystifies and follows technical analysis superstitiously.

Well, as you can see from the list of differences above, the difference between rich options trading and poor options trading is not only a matter of technique or method but also a matter of attitude and mental approach. Only when the right mind meets the right technique does rich options trading happen. Are you making any of the mistakes that poor options trading makes?

Jason Ng is the Founder and Chief Option Strategist of Masters ‘O’ Equity Asset Management ( ) and author of Options Trading education site, He is a fund manager specializing in options trading and his revolutionary Star Trading System has helped thousands.

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Although Forex Trading can be an ideal business and an amazing way for some people to build capital quickly it is not exactly a passive income investment. We do still have to work a little studying charts and occasionally clicking a mouse to enter or exit a trade. Yeah, that’s pretty grueling work but someone has to do it. While you are enjoying the freedom of lifestyle and the enormous excess fund from trading (if you ever figure out how to get consistent profit) you may want to also be planning to use part of that capital for other investments. Robert Kiyosaki, author or Rich Dad, Poor Dad is one of the guys who first got me interested in the concept of having a path in life that leads to passive income. I have seen people create passive income at least temporarily from things like owning a dozen latte stands that they don’t work in. But believe me there is no way to do that without still constantly working to manage them. I’ve seen people create big passive income checks from Network Marketing. But again they still work their butts off to replace the turnover and keep recruiting new people and train them. One guy told me about buying RV storage facilities. It’s basically a vacant lot with a fence around it that you use to let people rent out space to park their giant RV’s which they never use. Hmmm. Interesting. Well if you currently have a business in Forex trading or in trading stocks, commodities, futures, etc, you might be thinking about how you can use part of the
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Those of you familiar with Robert Kiyosaki’s teachings will know about his “Cash flow Quadrant” book and how it goes into extensive detail with regards to 4 very specific groups that we people all fall under.

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

The Employee, the Self-employed, the Business owner and the Investor.

The ideal quadrant for anyone wanting to get wealthy is to be under the Business or Investor quadrant.


Because it allows you to exploit leverage to its fullest potential, which means that you can continue to increase your income by working the same amount of time (if not less) as opposed to an employee or self-employed person who can only make “x money per hour” worked.

Now, Robert Kiyosaki emphasizes continually on becoming an Investor because this is the quadrant that allows passive income to be generated. This is the end goal, to become an investor who can generate passive income no matter if he/she gets up for work or not (and This is my personal goal).

So in order for this to be achieved in the fastest possible way, Mr. Kiyosaki suggests you build and grow businesses to create cash flow which then allows you to “invest” and eventually become a wealthy “full-time” investor.

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

You see, there is a false belief traveling the Internet whereby people tend to believe that trading is nothing more than a mere job, when in reality they don’t have a clue how powerful this “alleged job” truly has on impacting their life’s!

First of all, let’s get something straight. Trading Forex can be anything you want it to be:

–       It can be a hobby (a very unprofitable hobby I may add).

–       It can be “just another job” (like many call it online).

–       It can be a business.

–       It can be an investment and wealth creation vehicle.

If you understand HOW to structure your Forex trading correctly, you will be in for the biggest ride of your life Guaranteed!

So bear with me as I first explain what exactly occurs and 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 adhere to on a consistent daily basis, also known as “jobs”. Some of these rules could be:

–       The days the employee works.

–       The time the employee works per day.

–       The full responsibilities of the job held, whatever the business may be.

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

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

These “investment systems” are nothing more than entry, risk management and exit rules for the investor to abide by to grow his portfolio over time in a systematic and professional manner.

Are you starting to get the big picture yet!?

Forex trading, or any other type of trading, contains an amazing composition not many other types of businesses provide.

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

Now let me share with you how exactly this applies to your Forex trading career:

The Business Quadrant:

The “owner” of the Forex Trading Business develops a system so that his “employee” can do his “job”.

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

The Investor Quadrant:

This person develops a money making system that allows him to make money FROM money.

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

The Employee Quadrant:

This is the person that holds the “risk management” job for the Forex Trading firm.

He gets paid a monthly salary for doing his job correctly.

But the cool thing here, is that YOU are all three quadrants, built into one.

You are the business owner who creates cash flow which allows you to invest and make more money.

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

You are the employee who trades for the company and gets paid a salary.

The cool part is that because you are the business owner, the investor and the employee all in one, you take full advantage of leverage.

What does this mean to you?

1)    You work a set amount of hours per day, just like an employee does, with the difference that your income grows exponentially over time with no additional work involved.

2)    You own a business which grows consistently and generates cash flow which in turn allows you to invest.

3)    You are an investor, with a business that generates consistent cash flow, which can now re-invest and make even more money from 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 reductions in taxes that the government gives.

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


“Pro Retail Trading is a group of professional full time traders committed to educate and empower traders from all walks of life, no matter their experience level.”


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