Chapter Four With paper assets, we can do this without using any debt at all. That’s right: zero debt. And because one of the things that paper assets brings to the table is the ability to scale, this type of investing is available to almost anyone who is willing to obtain the necessary financial education. Again, I want to emphasize that a person does not need to be a multimillionaire to learn about these types of investments. When Robert asked me to show how to “print money,” I thought the easiest way to do it might be to make a very small trade (1,000 shares) and use it as an example that earns between $500 and $600 or so in cash flow. Even though this is the same process my hedge-fund friends apply to millions, we can actually scale it down to someone who just wants to generate their first few hundred dollars from somewhere other than a job. I will use some pictures to illustrate and also use the simple concept of hedging we discussed earlier in the chapter. In the world of paper assets, an investor can choose to be a buyer of a contract and spend money, or be the seller of a contract and receive money. It’s actually a very straightforward concept. Buyers spend money. Sellers receive money. Robert often mentions the importance of taking a class to learn basic technical analysis. It’s the term we use to look at the ups and downs of markets. It’s one of the things we can get somewhat familiar with by playing the CASHFLOW 202 game.
by Rich Dad, Robert Kiyosaki