The book begins by addressing many of the challenges stock market investors face today and the various ways many investors use the stock market to achieve their goals.A valuable discussion of where paper assets fit (and do not fit) in the context of Rich Dad principles and its place among the other assets classes such as real estate business and commodities.The bulk of the book educates investors on "Andy's 4 pillars of stock market income" and effectively simplifies the four concepts to help investors begin to harness their power.The book concludes with ideas for an individual action plan suited to the goals of the reader
When I first picked this book, I was a little worried about the content? If you read any Rich Dad Poor Dad book series (or any other Rich Dad advisers' books), you will soon realised that sometimes their information is too generalized, making it lacking in terms of studying the subject of the book.
However I was pleasantly surprised when I finished reading the book; in fact I think in my opinion this is one of the greatest book on investing in the stock market!
Very clear, very idiot proof, very informative. A good read!
Even having read a number of books in the Rich Dad Adviser series I was pleasantly surprised by how much I got out of this book. Not only did it give me a great intro to fundamental and technical analysis but it had a lot of phenomenal perspective on finance, investing and education. This definitely changed the way I look at the stock market and increased my understanding of how paper assets can fit into my portfolio and how I can use them to greater advantage.
Like most Rich Dad books you won't be an expert investor in paper assets after reading this book but it provides a wealth of info that can help investors determine where they want to seek additional education.
What I loved most about Andy’s book is that he does not clutter our minds with unnecessary financial jargon. For the first time in my investing journey I feel like someone is holding my hand and makes it a lot simpler than others. Stock Market Cashflow opened my eyes to new ways to achieve my financial freedom, and Andy transferred his passion for investing to me. Thank you so much Andy for having our financial education at heart and writing this book!
Liked the laymen explanations. Really liked the strategy of using options (covered by your own shares) to hedge long-term bets and generate cash flow. Also liked the ticker graph patterns and explanation of what moves the stock price.
Took a while for me to be fully invested (haha) in this book, but by the end I was nearly unable to put it down. It has definitely opened my eyes to different ways to approach investing and life.
TL;DR; - This was a lot better book than I expected. It lays out some important basics for beginners. A lot of the book is the 10,000 feet view of stock market investing, but he also spends time showing practical, applicable examples of how to implement many of the things he talks about.
Long Version...
The first three chapters were actually quite boring for me, but this was because it recapped things I had already learned in other books. Also, maybe because I was a bit impatient. :-D Overall tho he held true to the teacher image he tried to project. He told you what he was going to teach you, he taught you, and then he recapped to help solidify it.
The fourth chapter was on fundamental analysis. I was interested to see what he would say because fundamental analysis was what I had read a lot about last year. I was happy he still was able to teach me some different ways of looking at things.
In the fifth chapter he talked about technical analysis. This was the chapter I bought the book for. There was a lot of new information for me. While it did give me some practical examples and information, it also left me with more questions about how to get more in depth in regard to this topic.
I honestly didn't expect much from the rest of the book, but it ended up being more valuable than the first half. In the last half he explained clearly with examples... - how to use leverage ( options) - how to minimize risk - how to put those two togother to buy/sell - how to insure against both non-systemic and systemic risk - etc
So overall I loved this book. I will be spending the next few months practicing what he showed. I just have a few small criticisms. First this book is a bit thin. It would be nice in each chapter if he went a bit more in depth, and added references to where we could learn more. Second a lot of his parallels where using real estate, and it would've been nice to so more variety.
In order to be really successful, you have to have a 2nd gear-that reserve energy you can go to when things get tough. When your passive income surpasses your expenses, you're out of the Rat Race. What a place to be!
If someone places an order incorrectly or makes a mistake on the order form, that type of mistake in the invest world is known as pilot error. Paper trading helps you cut down on your pilot errors as you become more familiar with the brokerage website or software.
The principles taught here can be applied to any asset class. What a fantastic job by the author of breaking down the complexity of the stock market with analogies! As a real estate investor I've always been intimidated by the stock market. Now I realize it's no more risky. The only thing risky is investing without educating. A big thanks to the author!
Definitely a reread. A great basic informative book to start learning about option trading. Looking forward to continuing my financial education. Easy to follow, lots of content with easy to follow comparisons.
Andy has an amazing talent for easing you into complex financial concepts. This book serves as great foundation for anyone intimidated by perspective of generating cash income from the stock market.
A great introduction to investing, generating cash flow, and managing risks in the stock market. It tied together the 4 pillars in investing: Fundamental, Technical, Cash Flow, and Risk Management.
There are endless possibilities to make money in the market no matter which direction it goes. It is all about how you position yourself. No one can predict and control the market. To protect yourself, you must educate and understand how to manage and control risks. The other 3 pillars are just as important too.
It is very important to have an exit strategy before investing. You must also determine your trade size based on how much percent of your account you are willing to lose. Stick to your strategies and plans, and your psychology will not be affected.
Create the life you want by writing your lifestyle goals first, then your money goals, and then your education goals. To get the life that you want to live, you must have the money to support it. To get the money you need, you must get the education and develop the skills that will help you find opportunities to buy assets that produces cash flow.
I have been a listener to Cashflow academy podcast for a while and have really enjoyed listening to his insights.
This book beautifully covers the 4 pillars of investing. While I have learnt about fundamental and technical analysis through other books as well, Andy also covers a great deal about sovereign debt issues of a country and how it impacts country's economy. Chapters on Cash flow and Risk management are gem and he explains these aspects in a way that is very easy to understand and with lots of examples and pictures. This is intro level book and one needs to study these subjects much deeply yo start using products like Options.
Andy explains the nuanced way of investing in stocks and options quite well. It’s a great introduction to what’s possible with paper assets and that it’s much more than just “invest and hope it goes up”. The book doesn’t go into the finer details of options investing and it obviously serves as an introduction to more expensive investing courses by Andy/Rich Dad but it’s a great introduction nonetheless to how to invest in paper assets for more gain and less risk.
This book is perfect for someone who is interested in investing in stock market. Give a general plan for what to do. More details needed to do research on but this is not the goal of this book anyway. It’s like Rich Dad and Poor Dad, focuses more on concepts than detailed guild book. Recommended.
This book explains the hard concepts in a very easily understandable way. Very inspiring and very helpful for beginners who want to learn to invest in stock markets. However, the context of the book is particular to the US stock market. It is not quite easily applicable in my country's stock market.
First 20 procent is warming you up that you need to educate yourself.. Then he explains some general things and in the end.. Well you need to educate yourself advice again.. And guess where offcourse where we can educate ourselves?
Atleast I finally understand put and call options! Andy explains these in an easy way to understand. Great book on the basics of investment and really enjoyable to read.
This book is a must read if you are just starting to invest in the stock market. I recommend that you have the app that you use to research companies by your side so you can try out the techniques as you read. I use Yahoo Finance.
This is one of the easiest books I have read. Andy has a way of making things simple. This book is all about creating consistent cash flow from the stock market.
This is a great resource for any investors looking to broaden their knowledge on how to hedge and invest in all market conditions.
It surrounds the 4 Pillars of Investing: Fundamental Analysis, Technical Analysis, Cash Flow (my favorite type of investing), and Risk Management.
The book starts pretty simplistic in the first two pillars but the section on cash flow served as great knowledge for me. The section focused a lot on options and how to use them in various market climates. I even put a few of these strategies in play right after completing this book!
Generally, Rich Dad Poor Dad series books are a high level gloss of personal finance but this book actually went into specific details and strategies of investing and the wording was simple and can be comprehended by new-ish investors as well.
This is a great book that I’ll reference back down the line to refresh my knowledge.