Daytrading to earn a living: Doing the right thing at the right time.

WHEN you have two bestselling authors on how to be rich - Donald Trump and Robert Kiyosaki joining forces to write one book - you can’t help but want to find out what are their common views on how to be rich.

And it is very uncommon to have two bestselling authors coming together to write a book, which makes this book unique.
This book definitely lives up to the word “WE” as in the book title because you have Donald and Robert’s views on all the chapters. Robert first gives his view and then Donald.

There are five chapters in Part 1 to explain how and why the two come together to write the book. Also it is in Part 1 that the authors' explain that they are not writing because they need more money.

They are writing because they are concerned about you and your family, the country and even the world. Instead of giving money to the causes they believe in (as in giving you fish to eat for a day), they teach people how to fish.

As such it is in Part 1 where both authors emphasise on the need to raise one’s financial IQ. They also highlight the price of having a low financial IQ.

This is probably some of the points that I totally agree with. In many of my books, I have always been advocating that every one of us need to treat and manage our personal wealth like a business. Only then, can we increase our financial IQ and management competency.

In Part 2 of the book, the two authors write on their views on how to be rich. It covers topics from a winning attitude to thinking big. Essentially this part focuses more on the attitude than actual skills to be rich. In addition to their views, both authors also share their personal experiences to illustrate their points.

That makes the reading not so dry and perhaps it may keep you interested.
One new idea Robert shares here is the 90/10 rule, different from the well-known and researched 80/20 rule. According to him 90/10 rule applies more specifically to money.
In short, in the game of money, 10% of the players win 90% of the money. However, he doesn’t provide much explanation on how he manages to arrive at this 90/10 rule. But Donald testifies that he’s known the 90/10 for a long time. According to him, it could reach 95/05 or even 99/01.

In Chapter 8, Robert once again challenges the advice given by most financial planners. According to him, most financial planners will advise you to work hard, save money, get out of debt, invest for the long term (primarily in mutual funds) and diversify,
I feel that Robert is not aware that there are two parts to financial management. One part is wealth creation where you create wealth from almost nothing.

Another part is wealth maximisation where you maximise your created wealth. In order to be rich, you focus on wealth creation. This is where, like Robert and Donald advocates, you need to take a lot of risks and you don’t diversify.

However, to conserve and maximise the wealth you have created, you need to minimise the risks and diversify. Both authors’ views and experiences are useful for those who are working on wealth creation.

However, I would be most cautious in following their advice if you want to conserve and maximise your created wealth.

You may end up losing everything that you’ve created. Therefore, it is not a matter of who’s right and who’s wrong. It’s a matter of doing the right things at the right time.
In Part 3 of this book, both authors share even more on their personal philosophy and histories. Fans of Donald and Robert will be excited to find out more about their lessons learnt from their father, mothers, school, military school, sports and business. Believe it or not, they also share their views concerning God, religion and money.

Part 4 of the book is written more like a counselling clinic part of the book. Both authors share on what you can do to be rich in different scenarios, whether you are too young or too old, too poor or too rich. Readers in every stage of their financial well-being will find some interesting answers from the two gurus.
In Part 5 of the book, they share their views on their three favourite ways to be rich, namely real estate investing, network marketing and starting their own businesses. In this part, Robert shares again why he thinks that mutual funds are not a good investment.

He believes that 80% of the returns from mutual fund investment go to the mutual fund company and only 20% of the returns go to the investors. Again, he does not explain in more details on how he arrives at the percentage. I am afraid this is not going to make unit trust agents love him very much.

For those who have been followers of Donald and Robert’s books, you may not find many new ideas in this book. However, if you haven’t read any books by them, this is definitely an interesting and comprehensive book for you to begin with.
Remember, what they are sharing are the success principles for wealth creation (which means to be rich). If you intend to conserve and maximise what you have created, you need to be mindful and selective in picking up such advice.

Below candlestick formation of Asian Stocks today versus Friday candle.