While derivatives may have caused the recent financial mess, it can still bring you great wealth when used correctly. This article will explore how you can get richer by creating derivatives.
In financial terms, a derivative mean having value from an underlying variable asset. For example, a mortgage is derived from a house while stocks are derived from a company. In the recent crisis, derivatives made people poorer because they allowed greater leverage which also made investments volatile.
For example, collateralized debt obligations were derived from mortgages which in turn were derived from houses. By increasing the power of derivatives to power 2 here, investors invested in the derivatives of derivatives. Here, they might get more leverage but also, they undertake significantly more risk.
However, despite all these, to become rich, the most important thing you must know is how to create your own derivatives (for e.g. creating your own seminars or products, etc).
Today, we can create money by deriving things from our thoughts. Money is derived from financial knowledge and experience. Thus, to earn more money, you must know money well and be very experienced in handling money.
Whenever derivatives are created, there must be cash flow from the paying side to the receiving side. For example, a book is derived from an author which in turn allows licenses to be derived from it. From licenses, publishers get the right to print and ship the book by paying a royalty to the author. Here, the derivative is up to power 4, flowing from author to book to license to published book to royalty.
Here, the way to get rich is clearly illustrated here where authors simply receive passive income in royalties from books which are derived from their thoughts. This can be also seen as a form of cash flow investments which are hard to find but guarantee consistent payments to you.
Hence, to conclude, you must create your own derivatives to get a confirmed ticket to wealth. For budding entrepreneurs, you can start by creating new products like newsletters which are derivatives of your thoughts. These newsletters can then be protected with the use of copyrights. Subsequently, you can license them and sell these licenses to interested publishers. People who buy your licenses will have to pay you a royalty for using your intellectual property and this would bring you passive income every month.
Other ideas are available and the ways to getting rich are definitely not confined only to this. Think out of the box and pursue your wealth now!
In financial terms, a derivative mean having value from an underlying variable asset. For example, a mortgage is derived from a house while stocks are derived from a company. In the recent crisis, derivatives made people poorer because they allowed greater leverage which also made investments volatile.
For example, collateralized debt obligations were derived from mortgages which in turn were derived from houses. By increasing the power of derivatives to power 2 here, investors invested in the derivatives of derivatives. Here, they might get more leverage but also, they undertake significantly more risk.
However, despite all these, to become rich, the most important thing you must know is how to create your own derivatives (for e.g. creating your own seminars or products, etc).
Today, we can create money by deriving things from our thoughts. Money is derived from financial knowledge and experience. Thus, to earn more money, you must know money well and be very experienced in handling money.
Whenever derivatives are created, there must be cash flow from the paying side to the receiving side. For example, a book is derived from an author which in turn allows licenses to be derived from it. From licenses, publishers get the right to print and ship the book by paying a royalty to the author. Here, the derivative is up to power 4, flowing from author to book to license to published book to royalty.
Here, the way to get rich is clearly illustrated here where authors simply receive passive income in royalties from books which are derived from their thoughts. This can be also seen as a form of cash flow investments which are hard to find but guarantee consistent payments to you.
Hence, to conclude, you must create your own derivatives to get a confirmed ticket to wealth. For budding entrepreneurs, you can start by creating new products like newsletters which are derivatives of your thoughts. These newsletters can then be protected with the use of copyrights. Subsequently, you can license them and sell these licenses to interested publishers. People who buy your licenses will have to pay you a royalty for using your intellectual property and this would bring you passive income every month.
Other ideas are available and the ways to getting rich are definitely not confined only to this. Think out of the box and pursue your wealth now!
