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from amateurs. An example is Mr. Average, an investor who gets up, reads
the newspaper over a cup of coffee, and notices a news release from his
favorite public company. He then calls his broker or goes online to make his
trade. Even though the information may only be a few hours old, Mr.
Average is already in a losing position. Mr. Average is late to the party
because he was never invited. He is not on the inside. He is an outsider.
One of the main reasons rich dad encouraged me to develop my financial
intelligence is so I could have access to inside information. The closer to
the inside your information, the richer you become.
4. Relative information. Watching battlefield information change day by
day, we as information officers were able to interpret past and present
information to forecast future information. For example, if we knew that
enemy troops were in one position on Tuesday, another position on
Wednesday, and another position on Thursday, we could begin to predict
where they were going and what their objectives might be. In other words,
we had to know how information related to other information.
In the world of business and investing, this past, present, and future
information gathering is known as watching the trends.
5. Deceptive information. In war, the enemy would often try to deceive us
by sending deceptive information. They occasionally did this by using
diversionary tactics. For example, they might move a large number of
troops and equipment, making a lot of noise and dust, just to distract us
from their real motives and objectives. Or they allowed us to capture one of
their troops who provided erroneous information. Or they used a spy,
someone we thought was on our side, to provide us with inaccurate
information.
The Pump and Dump
Business and investing are rampant with deceptive information. An
entrepreneur and investor must be constantly vigilant and on guard against
deceptive information. For example, many times a financial expert will tell
