Rich Dad Wrong Dad

Recently I attended one of the Rich Dad Poor Dad seminars, specifically, how to make money in the stock market. I’ve been dabbling in the market for awhile, and I am now comfortable dealing in the Big, Blue Market. Can’t say I have been doing my due diligence every day, but I have put in some time.

Our speaker was well spoken and charismatic. He controlled the room and demanded attention. He did stress that education is key, which I agree with. However, I couldn’t help, but think he was getting ready to sell us swamp land in Florida. I was pleasantly surprised when he taught me a thing or two about different stock trading techniques. After digesting and feeling content. I saw three quarters of the room rushing to sign up for an intense three day training class. The package includes tons of books and software for a pretty reasonable price. I opted not to sign up as I feel pretty comfortable with where I am at, but I couldn’t help, but wonder about everyone else.

I anticipate there will be two outcomes. A bunch will just let the books collect dust. The second bunch will be lambs to a slaughterhouse. The speaker gave us examples using MACD and stochastics as indicators, but he chose very specific setups where everything lined up perfectly. Any fifth grader could buy or sell when they see three thumbs up, right? What most of these lambs don’t know is most of the time; the three indicators won’t line up perfectly. Then what?

I also think Kiyosaki needs to teach people about how to mentally and emotionally prepare for putting hard earned money at risk. It’s not for the faint of heart. It seems these days Kiyosaki is making money off of people’s hopes and dreams of getting out of the rat race. To his credit, he does give some tools to make this happen, but without proper coaching on the mental and emotional aspect it’s as dangerous as giving someone a gun without going over gun safety. The ones who are brave enough and not let their books collect dust could seriously hurt themselves financially.

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26 Responses

  1. Was it Koisaki that was speaking? I like parts of his book, but it seems like his franchise has gotten too big. So what did you learn from the seminar? Share? 🙂

    • Buck says:

      No the Big Kahuna wasn’t there, one of his lieutenants. He’s probably at home collecting and counting his money. 🙂 Like I said before, they stressed education. You want to succeed? Educate yourself. The rest of the night was buzzwords, hocus pocus and examples of their system making money hand over fist. They focused on three indicators and when the black line crosses the red line, buy, red line goes below black line, sell. And look, all three are intersecting at the same time! Magic… It wasn’t all bad. But objectively, it’s like one more level of detail than buy low and sell high! 🙂

  2. Aloysa says:

    We had this seminar here in Utah too. I was thinking to go but I am not big into financial seminars. After reading your post, I think I made the right decision.

    • Buck says:

      Yeah I think you did, too. 🙂 However, if you ever did want a free “get your feet wet” in the stock market talk, this wasn’t bad. Keep in mind, they give you a taste, and then reel you in! They also threw in a silver ingot as a souvenier. Silver is going up. 🙂

  3. I have been seeing his seminars either investing or real estate or some financial topic advertised frequently in Los Angeles area. I don’t like RDPD books, so I never really paid attention to it. Looks like I made a right decision. Did you learn anything new from the seminar?

    • Buck says:

      There’s a sucker born every minute? 🙂 I knew most of the basics, but it did make me look at those indicators he talked about. Very difficult to line it all up in a row though. I forgot, he did touch on options a little. Might look into that just to learn about it. Finally, human nature always looks for the shortcut and easy way out. Plus, there will be people out there who will prey on that, too. Dog eat dog world out there! 🙂

  4. I think I own 4 books from Robert Kiyosaki. I have always been interested in real estate and the stock market.

    I think I would enjoy attending one of his seminars, but I think I would find myself in a position much like yours. I would see the others rush in for all the training, but more than likely, they will not succeed. Stock trading is risky business and can’t be learned in one lesson.

    You sound pretty savvy. I hope everything works out for you.

    • Buck says:

      Wow, 4 books? Did they help you in the stock market and real estate? They pushed his new book Conspiracy. One of the topics is the Dow going back down to 5,000! Savvy? Thanks. I’m just one step ahead of the Rich Dad mob. 🙂 Looking forward to more of your posts. Good luck to you as well!

  5. Mark says:

    His seminars are advertised here as well. I have seen that thumbs up and down software. I would never buy a stock because a light flickered on and off. It’s simply not as easy as that even though I wish it was!

    • Buck says:

      I get his flyers and Donald Trump’s all the time. Yeah, easier said than done. “But they’ve done it and you can, too!” Funny, can you blame them? They have something people want and now they are just selling it and answering the demand. I’m thinking most people would do the same. What do you think?

  6. I’m like you when it comes to these seminars. They always point out how well the Big Kahuna is doing but don’t break down his income sources. I would guess that the seminars are probably his main source of money these days because it’s really just to push the books and other tools that these people will not use. It’s called upselling. I can’t knock him for it, but they won’t get me…Kind of like Trump University. Not happening.

    • Buck says:

      Hey Sandy,

      Yeah they won’t get me either. They do go over some concepts which could be useful. But I agree, main source of money these days could be these training packages. I went to Trump University seminars, too. Quite similar. The thing about Trump, he is more diversed as he has his tv gig, too. Thinking back to Kiyosaki, if you were successful in whatever you did, wouldn’t you consider upselling yourself, too? Supply and demand, it just goes round and round. 🙂

  7. Yeah, I could teach a stock trading seminar too if I chose stocks with setups like a blazing bright doji star or bollinger bands that look like they could strangle an ant.

    You are totally right – stock trading is not for the feint of heart. He needs to handle the emotional side of stock trading. Technicals can be great, but they can also be very, very wrong. It isn’t real often you come across a fantastic stock chart that shows every indicator in the right direction.

    I prefer index funds myself.

    • Buck says:

      Agreed. You sound like an old pro! You don’t work on Wall Street do you? I used index funds to build up my tolerance to volatility. I’m dabbling with stocks a bit. Nothing hard core. Just getting my feet wet. Hopefully the market continues to go up next year. 🙂

  8. Squirrelers says:

    I read two of the books in that series. They were interesting and thought provoking, which can be a really good thing. Frankly, I’m glad I read them, as they provide some perspectives that are worth at least considering and listenting to. Just not to the point of treating it as gospel.

    Having said that, that’s really all they are: different perspectives to consider. I didn’t read any other books in that series, because they seemed to be different spins of the same type of message, at least in the few that I scanned.

    I do agree that these teachings can be dangerous if misapplied and taken as gospel. I know better than that, and do disagree with quite a few things that are included in those books as well. I don’t see any reason for me to attend those seminars, unless they are free. Even then, time is valuable – and is probably more valuable doing other things in my view. They’ve gotten rich enough as it is, they don’t need my money:)

    • Buck says:

      I think I read one of his books, can’t remember which one, but yeah I think it’s the same message from different angles. Funny, as long as people are buying it, guess he should continue selling it. Wouldn’t you? 🙂 Like I said in the post, they did stress education which is a good thing. But you are absolutely right, if taken as the gospel, big trouble. If he wanted to be more PC, he should say educate yourself, but also take it with a grain of salt? Not as impressive of a sales pitch though. 🙂

  9. Jim Smith says:

    Rich dad is such a fraud. Like a lot of people who become ‘gurus’ the past history is massaged and changed to suit their circumstances. Check out my Guru post (why I like Gurus) for links to sites that show he isn’t all he’s cracked up to be. Too many gaps in the story for it to be real.

    • Buck says:

      I thought I heard somewhere that he embellished his stories to get his point across. There is a chance that the “Rich Dad” in the story may not even be real. Will stop by your site to read up on gurus. Thanks! 🙂

  10. I commend you on not volunteering to get slaughtered like the others. One has to be very careful when it comes to these seminars as they prey on people’s dreams of “getting rich quick”. If there ever was a holy grail in the stock market, no one in his right mind would sell it at any price.

    Remember, there’s more profits to be made selling gold prospectors tools than to go exploring for gold yourself.

    • Buck says:

      Thanks, I’m not looking forward to being slaughtered. 🙂 Selling tools for the gold rather than work in the mines is safer and more fruitful. Guess we all would do the same if we were in the same position.

  11. Jared Bolla says:

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  12. Kidgas says:

    I am sure that you are spot on when you suspect that the majority of money made by “gurus” is by selling stuff. If I had the magic answer to investing, I sure wouldn’t sell it to anybody but would use it to support my family.

    It is important to gather information and separate the wheat from the chaff. There is useful information to be had in most books. If you have any questions about the market and options, I will answer what I can. I have traded options in my retirement accounts for a decade now (since 1999).

    • Buck says:

      Funny I often ask myself, if I ever found a secret formula, would I try and sell my wares to other folks and profit off of them? I dunno, hard to say until you are really on the hot seat. My guess is many people actually would do the same. Thanks, I may have to take you up on your offer. Is that your preferred method of working the stock market?

      • kidgas says:

        Yes options are my preferred method. I purchase protective puts on stocks that I own and then sell calls against them creating a collar. I am very concerned about protecting capital and am finally getting to the point of being able to earn consistently. I am still fine tuning a few things but think I have a good understanding of what I am doing.

        There are many different ways to make money in stocks. It is just up to each one to figure out the method that works for you. Personality plays a big role, but there are ways of even making risky things (like air travel) as safe as possible.

        • Buck Inspire says:

          Sounds like you have a plan. Consistently earning is awesome. It’s been a slow process for me, stock wise. Needed years just to keep my emotions in check. I’m one step behind you. Trying to earn on a consistent basis. Sticking with stocks for now. Don’t want to bite off more than I can chew. You’re right about personality. Before, I actually shouldn’t have been playing stocks because I was just too emotional.

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