I know that there are a lot of difficulties in becoming a profitable trader, but there are a lot of difficulties in running any business profitably and in my other business ventures I am experiencing some of these difficulties at the moment. When these issues come up it hits me what great advantages there are in trading as a business compared to other businesses and in case anyone apart from myself needed reminding, I thought I’d just do a quick list here.
1. Easy to scale.. you can start with a tiny account and test out your system..if you lose money you have only lost a little but if you find a winning strategy you can scale more or less as big as you like. In other businesses this is much harder and if it is possible can require a large investment in marketing.
2. No customers,no employees,no employer,no office politics..in other words not having to deal with people who do your head in.
3. Time freedom, even if you dont make a huge living trading you can work hours that suit you, if you only want to work three days a week you can, if you only want to check charts at the end of the day you can, bringing your work time down to two hours or less per week!
4. Your risk is quantified, when you start up a business where you may have to invest in premises,stock,staff etc, you have no real idea what your risk is going to be, in trading you know.
5. No competition,in other types of business you always have the competition coming up behind you to try and grab your business, in trading you always have a market however many traders there are. It makes no difference how many traders flood the market as regards how profitable you can be.
6.No expenses except your trading account and maybe a trading platform, most businesses require outlay.
I know this is a very short list and there are probably a lot more advantages to trading but for me these are the main ones.
Bye for Now and Good Trading…