From Anton Kreil, a retired professional stock trader. He’s the star of the Youtube channel, Institute of Trading, which has long videos of him sharing wisdom and wealth mentality tips. Here are some lessons he has shared.
1. Respect money.
In order to be successful, you have to understand the purpose of money. Money exists solely to eliminate the double coincidence of wants, i.e. two people agree to exchange goods or services. If you agree to do the dishes in exchange for a massage later, you’ve created a double coincidence of wants.
Money makes society work, and all the things we have in this world today exist because of money. The double coincidence of wants is incredibly rare in this age.
2. Money is not the root of all evil.
There are two types of greed: one that pushes you to strive for a better life for yourself and your family, and one that pushes you to exploit others for a few extra pennies. The line between the two is thin, yet distinct.
It’s this second type of greed that is the root of evil.
Kreil defines these as “positive” and “negative” greed, respectively, but I’m not sure if I agree with those terms.
3. Be indifferent towards money.
It’s important not to get emotionally attached to it, and to make sure you manage it well. More money does not equal more problems. More money plus a shift in mentality plus mismanagement equals more problems.
Tear down your emotional barriers to money. Be indifferent towards it, for money does not care about you.
How can you both respect money and be indifferent towards it?
Being aware of the function of money is the place to start.
4. Money is a commodity with a cost.
Its cost is time.
Learn to value your time properly and you will be able to make money.
Only going to work and saving money is just trading your time for money. It’s linear growth.
If you want to become wealthy, you should aim for exponential growth.
Here’s the source for these lessons. They’re not easy to think hear, and certainly not easy to implement.
Check out the Youtube channel for more money lessons and for specific trading tips.