Wealth Creation: The Psychological Truth

The human mind is fascinating; the fact is, programmed properly we can unlock the belief of what is possible. The first part to understand is wealth creation has nothing to do with background or academia, there are countless thousands of people who are probably not as smart as you but are substantially wealthier. In our mind the language we use to describe ourselves, subconsciously, defines what we believe about ourselves & ultimately structures our wealth building decisions & financial identity.

Consider lottery winners, they suddenly fall upon a huge amount of money they have neither earnt nor grown through smart investment.  According to Fortune Magazine “the Certified Financial Planner Board of Standards says nearly a third of lottery winners declare bankruptcy, meaning they are worse off than before they became wealthy”, they simply don’t believe being wealthy is consistent with their perception of who they are.

To become wealthy, it has nothing to do with what you think about money but everything to do with what you feel about money. If I asked you what it would be like to have a lot of money I’m sure your response would be overwhelmingly positive, financial freedom, early retirement, the list goes on. If I asked you what you remember hearing as a child about money I would place a hefty bet that it would not be so positive, money doesn’t grow on trees or rich people are mean are the usual responses. Now this is not our fault, but the fact is we have all grown up with these negative seeds planted deep in our psyche.

The fact that 90% of retail traders consistently lose money simply adds to this perception that consistent returns in the currency markets are a myth. The reality is most don’t align themselves with the top end of town, they punt away on a few hours learning from online educators who have huge conflicts of interest. Professional traders require a huge amount of discipline to manage positions properly & it takes many years to nurture. As humans, our instinct makes us cut & take minor profits whilst we hold our losing positions hoping for a rebound, we’ve all been there, good traders just learn to cut out the emotion.

Once we’ve opened our beliefs to the financial possibilities available we must learn not to confuse being a strategic risk taker with being reckless. Anyone can buy a lottery ticket or aimlessly punt the FX markets but to strategically manage & direct an investment portfolio down the river of wealth creation, now that is strategic risk management & it’s the reason good traders make such consistent returns. Finding yourself a competent professional with a proven track record is the next step.

Quality investment portfolios, like a ship will require directional goals & experienced management. So, align yourself with the top end of town. Don’t just go on face value, good traders & investment firms will all be happy to give you their results, they’re proud of them, even better ask for audited results! Look for firms with consistent track records, using small amounts of leverage & ask them about their risk management. With a little research & due diligence you too can find a quality firm, producing consistently high returns & grow your capital alongside the professionals.