Insights on Robert Kiyosaki’s Guide to Investing – Chapter 23

After learning the characteristics of being a qualified investor, we now go to the second category on Chapter 23 which discusses “The Accredited Investor”.

The accredited investor is someone who have excess cash as well as the education. They are those types of people who have learned everything there is in terms of investing in the stock market.

They are the ones who learned and apply either the fundamental investing, technical investing or a mix of both practices.

Most financial experts whenever they invest in the stock market use the concept of fundamental investing that looks on to the financial statements, ratios and even interest rates to decide whether to invest on a publicly traded stock. They use their knowledge on reading the financial statements for their advantage and to determine the growth of their prospective investments.

Technical investors on the other hand are those kinds of people who uses the market trends. They simply decide on buying or selling shares of stock depending on how the market behaves.

The failures from investing as an accredited investor is that most people are mostly fundamentalists or mostly technical. They don’t bother to study and apply both practices. Fundamental investing is favorable in a stable market because there is constant growth in the chosen investments but once the market’s direction started to go down, it goes down extremely fast that most investors lose.

Technical investors on the other hand invests on shares that are cheap once the market crashes, they take the opportunity to get hold of the effects of the crashes and once the market recovers, they have made a lot of money. Thanks to the crash that caused the fundamentalists to sell their shares that benefited the technical investors.

In order to become an outstanding accredited investor, one must make use of the opportunities that a stable market as well as a crash market has to offer. He can easily have millions if only the two concepts would be applied.

NOTE: IF YOU MISSED THE EARLIER CHAPTERS HERE ARE THE LINKS:

• Introduction
• Chapter 1
• Chapter 2
• Chapter 3
• Chapter 4
• Chapter 5
• Chapter 6
• Chapter 7
• Chapter 8
• Chapter 9
• Chapter 10
• Chapter 11
• Chapter 12
• Chapter 13
• Chapter 14
• Chapter 15
• Chapter 16
• Chapter 17
• Chapter 18
• Chapter 19
• Chapter 20
• Chapter 21
• Chapter 22