A Portfolio for All Markets: 12 Options Trading Principles to Profit in All Market Environments by Karl Domm

A Portfolio for All Markets: 12 Options Trading Principles to Profit in All Market Environments by Karl Domm

CHAPTER 1
THE HOW OF INCOME

«Rich Dad Poor Dad» author Robert Kiyosaki has broken income
producing options into four categories:
1. Employed
Working as an Employee. This is your worst choice unless it’s very
temporary. You don’t want to trade your time for money.
2. Self Employed
You work for yourself, but you must do the work. It cannot run without
your contribution. If you don’t show up, you don’t get paid! Some examples
are lawyers, doctors, and consultants.
3. Business Owner
It’s better to own a business than to be an employee or someone self-

employed, but you still must supervise employees, problem-solve, and
guide the business in the right direction.
I include «multi-level marketing» in this category. I have been involved in a
few multi-level marketing businesses. I spent most of my time holding
meetings, making phone calls , and actively meeting new prospects. I was
never able to reach a high-status level, but the people that do have to
supervise others and continually look for new recruits. To be at the top of a
multi-level marketing business means you’re working all the time. It’s not a
venture that will provide you passive income.
If your goal is passive income, DON’T become an employee, self employed
or a business owner.
4. The Investor
To me, an investor is anyone who uses a strategy to produce passive
income. Some common investment vehicles include the stock market, real
estate, royalty income (paid to an owner for the ongoing use of their asset)
or a silent partnership.

A Portfolio for All Markets: 12 Options Trading Principles to Profit in All Market Environments by Karl Domm