A trader explains why forex trading works as a business: low startup costs, complete control over your schedule, and unlimited income potential. The video covers ten qualities that make it viable, plus why most new traders fail.
Okay, let's look at some of these things that make trading unique and are your advantages. Well, first of all, you have very low barriers to entry. I mean, if you've got a couple thousand bucks and you want to start trading today, you can. It's not like you got to go get a four year or eight year degree, put up a building and all this kind of stuff. You got money, you can start trading like immediately and it doesn't take a ton of capital eating. It's not like you got to have several million dollars to get started in trading. You can get started trading with a couple hundred, couple thousand bucks.
That's cool.
There are proven models readily available. There are. Unlike other businesses, where the really successful companies closely guard their competitive advantage or business model. No, in trading, there are proven models all over the place. Well published too. In trading, unlike other businesses, you have 100% control over what goes on in your business. Other businesses, all other businesses involve other people. You have employees or vendors or customers. In trading. No, it's just you and the markets.
That's cool.
Trading is infinitely scalable. You can start off small, a few thousand bucks, ten thousand bucks, twenty thousand bucks, and you can scale it up to hundreds of millions of dollars without having to put up another building, move to another location, add staff or add capital. No, you, you can just scale it up as much as you want.
That's cool.
Wide range of involvement. It can be everything from completely passive, where you deposit your money into a managed account and have somebody else trade your money for you, and you just check in once in a while and see how the account is going. With forex trading, where you can trade around the clock and almost every day of the week, you can be absolutely insanely involved in it or hardly at all.
That's cool.
More reasons you're not geographically limited, you can trade traveling the world if you want to. That's really cool. You're not locked into a physical location, a certain locality to be successful. You can take breaks anytime you want and it doesn't hurt your business. With any other business, since it depends on other people and particularly customers. If you want to take three months or six months or a year off and just step away from your business, it'll kill your business or at least substantially hurt it. Not with this one, with trading, no. If you, you can take breaks anytime you want and the markets will welcome.
You as though you had never left.
Now this one here, as far as testing with zero risk, this is really cool. Trading is the only business I know of where you can test things in the real world and find out if they work. If you've got an idea, an indicator or strategy or a set of rules, whatever, you can test it in the real world to see if it works. Any other business, you can only theorize or get a little sampling. If you want to test it in the real world to see if it works, you've got to invest some time and money trading. Tremendous flexibility with any other business. If you want to change substantially how you're doing business, it's going to be some investment of time and resources to make that change. With trading, no. Say you're a long term, end of day position trader now and tomorrow you want to be a day trader. Hey, go for it and you can. There's nothing holding you back. That's cool. You're not locked in. Now this last advantage is really cool. But anyway, the more the merrier. Any other industry, more people come into that industry, that means more competition for you, means it's tougher to make a profit with trading. No more people that enter trading, that adds liquidity to the markets, means there's more people there available to take your trades when you want to put them out there.
That is cool.
So these are 10 huge advantages from a business perspective that make trading really just a great business. Now it is unique in many regards, but it still has similarities to other businesses. So what am I talking about? Well, all reliable businesses, keyword reliable, require the following planning. Good planning. I mean good business, a long term reliable income stream and source of wealth generation doesn't happen by accident. It requires some planning. Also requires organization. How can you expect consistent performance and profits out of anything that's not organized? Same thing with systemization. You want consistency, repeatability. That's where you get the reliability from. That's where your systemization comes into play. As well as adding to the profitability and efficiency of the operation. Good businesses also always have to have reasonable financial controls in place to make sure we're sticking to our plan and all that kind of stuff. And since it's an ongoing operation, ongoing activity, it does require management. Now this is fine. Don't be intimidated. These are common. Think about any good business that you know of. It has these qualities and that's what makes it a good business and very reliable. Now another similarity that trading has with other businesses, and this is really important here, if you look in any book just in general business, you'll see a statistic there and that's that 90% of all new businesses will fail within the first two to five years that's been around, it's true for a very long time. Oh well, that sounds a lot like the old statistic that's been around for a very long time. 90% of all new traders will fail in the first very short period, six months to a couple years. Why do you suppose that is?
What you've just seen is only one aspect of trading as a business. There is much more to successful trading, as you've discovered. There are several key puzzle pieces and unfortunately most traders only get a few. For the full story, where you can discover why trading is a real business, the 10 unique qualities that make it an ideal business the 7 common profit killers the 6 inherent obstacles to successful trading the 5 requirements for reliability A key attribute of successful trading is reliability, the distinguishing mindset between winners and losers, where most traders go wrong and what to do instead. Watch the full video Trading as yous Business this information really is critical for you to know because what you don't know can and will hurt you in trading. Give yourself the advantage. Go right now and watch the full video.
