Is Trading Ethical?

toc,

A quick look on the web just now reveals that 70 to 80 percent of small business startups fail the first year. Does that mean there must be something inherently wrong (VIA INVISABLE SUPERNATURAL FORCE)with starting a business or does the failure rate have to be 90 percent to qualify ?
 
http://www.mynewcompany.com/blog/the-myth-of-business-failure-rates/

Visit this link Top Gun, small business venture still puts you ahead of trading. Failure rate is 50% and you disect it further, it might be even lower.

SBA says 50% fail during first year:
The U.S. Small Business Administration has seen lots of small businesses come and, unfortunately, go. According to the SBA, over 50% of small businesses fail in the first year and 95% fail within the first five years. Why? What goes wrong?
 
toc,

What goes wrong? Maybe because anyone who starts a business or starts trading might have one bad or several bad ideas. I remember in the 1970's the Pet Rock. Some sharp fella sold rocks as pets and became a millionaire. Why didn't someone think of that before? Such a simple idea.
http://en.wikipedia.org/wiki/Pet_rock

I have tried to read a couple trading books. Didn't like their ideas. Rather use my imagination.

If all of my previous coworkers started a business or started trading, I think 95+% would quickly fail. I can tell just by their work ethic,attitude.
 
My original point was to question the 'metaphysical' aspect of ethics because if we go by the old scriptures saying we find that 'wrong money' from drugs, stealing, frauds etc. does not stay with you. So looking at the fact that 90% of traders end up blowing up and quitting MUST BE HINTING IN A SUBTLE MANNER TO THE FACT THAT THERE MIGHT BE SOMETHING WRONG IN TRADING THAT LEADS TRADERS (VIA INSIVIBLE SUPERNATURAL FORCE) TO LOSE AND THAT TOO 90% OF THEM. "
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Since you cited the Bible, here is the part you had referenced:
Proverbs 13:11 says, “Dishonest money dwindles away, but he who gathers money little by little makes it grow.”

The Bible does not prohibit gambling (I'm thinking this is the basis of your metaphysical aspect) The Bible warns against the love of money (1 Timothy 6:10; Hebrews 13:5) and attempts to "get rich quick" (Proverbs 13:11; 23:5; Ecclesiastes 5:10).

I stumbled to this site because an infomercial made trading sound easy. I'm tired of my consulting practice (40-60hr/wk) and would love to be able to fund my activities in only 6-10hrs a week like the infomercial made it sound. From a few hours reading on this board, I can see that is not going to happen and the only way to 'make it' is to actually put in a lot of study and work.

I love horses and have bred a race horse (now 3mo old). Associates of mine had encouraged thoroughbreds as a 'get rich quick' type of thing. It most definitely is not, the stats are far worse than anything a trader could imagine. I have entered it because I love the pedigree analysis and am interested in preserving (hopefully reviving) a dying sire line that will be important to reversing the current in-breeding trends. For me it is a breeding challenge and the race proves out if my planning for matings has been correct. I litterally spend 20+ hours EVERY week in study/planning and only expect to produce 2 horses next year who won't even have potential to earn money for 3 more years. So definitely not 'get rich quick'.

I personally think only a few industries can be called fundamentally unethical. I think that some attrack more unethical people than others. Both trading and thoroughbred attact those who see it as a 'get rich quick' and those who will make money from the poor people desparate to get rich quick (like the informercial that caused me to come here).

So I would say the high failure rates are more likely due to
(a) unethical companies mis-representing what is involved (like the infomercial)
(b) unskilled people not willing to or able to learn the skills (like I would be right now if I started trading)
(c) people looking for a easy get rich quick that move on to the next disaster

Sorry for the long post. The question hit an area that I had to deal with a couple years ago in relation to the thoroughbreds and have discussed often with the members of my church. I do believe there is a metaphysical part to it, because God (as I believe) knows your heart and if you love the money or trading more than Him.

Anyway. Hello, I'm new here and still reading through all the threads that contain a lot of good advice.

Kami
 
Late night infomercials are nothing but a fraud. I also heard somewhere, that those successful in business reported that they were into passion i.e. they were having fun in their business/work etc. and before they knew it riches started to pour in. So if you like what you do and develop addiction for it, sooner or later riches will flow.

Jobs mostly make the employer rich not the employee unless it is a top management stock option deal. The most important thing is to start throwing extra efforts on the side into an activity that is in trend.........internet some times ago, real estate recently, oil and energy these days etc.
 
It's like farming. The upside is bigger and there is less environmental impact.

Without risk takers (traders, entrepreneurs, etc.) there would be no economy just subsistence hunter gathering and seasonal agriculture.
 
According to the SBA, over 50% of small businesses fail in the first year and 95% fail within the first five years. Why? What goes wrong?[\quote]

In the US, we are a culture educated and raised to be employees. I was an employee until a few years ago and am now in the early stages of developing a consulting practice. It is at least double the work to not be an employee (even in an accepted/established industry) and at least five times as scary. I do it because I have no employment option that will let me maintain the life I want, so giving up is not a choice. On a weekly basis I am lining up revenue streams, handling existing clients, budgeting survival basics and attempting to wisely fit in expansion that will have an ROI and not jeapordize my survival basics.

Our high schools definitely do not educated for ANY of this. I hold a Masters Degree in a business major and all that did was prepare me to work for someone else.

My education as a business owner is coming through the day-to-day management of clents/performance; season-to-season management of revenue streams/expenses; and year to year planning to hopefully increase my base.

As an employee, I could blow off days worth of time durring the week because I was on salary and my managers had no choice but to accept my 'excuses'. Now, I think long and hard before I allow myself to blow off big blocks of time. Someday, I might have a base built up that will allow for that, but right now I could just as easily blow it (through bad decisions) and be living in a cardboard box.

No school or employer taught me how to operated w/o a safety. I manage it because I have a strong faith and keep the big picture in mind. I'm just comming off of 8 months w/o ANY 'paycheck' and most people have told me to go get a job instead. They don't allow value for the quality of life that I would loose as highly as that safe feeling thinking that there will be a 'guaranteed paycheck' week after week.

This mentality is installed by our education system, because the fact is the US profits hugely from employees. I now equal my prior annual (employed) salary by billing less than 6 months of the year and I bill far less for my time than they did. So there was HUGE profits there for my prior employers and all they did was find the clients while I did ALL else.

The average person, when hit with the work and down sides of self-employement will have employement options. Eventually, many will cave and return to the employement fold, even if only for a break. I truely believe the vast majority that make it are those who (a) have never known employment life or (b) have no other option (either real, though passion or self-imposed).
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who deosn't want to be self employed? but you must always consider the downside and also the opportunity costs involved. i have a 2 friends right out of college went into business. 1 did well and now makes his own hours, lives a life of leisure and makes 6 figures. the other worked just as hard but luck wasn't on his side and his business failed. now he wasted 4 years, and felt its too late to apply to mba so now he just works some hourly job, tryin to pay off his debt etc... The saddest part for that friend was the time lost. everyone else in his class went the corporate route and after 4 years all been establishing themselves. just the risk associated with starting a business~
 
Quote from neutrosphere:

who deosn't want to be self employed? but you must always consider the downside and also the opportunity costs involved. i have a 2 friends right out of college went into business. 1 did well and now makes his own hours, lives a life of leisure and makes 6 figures. the other worked just as hard but luck wasn't on his side and his business failed. now he wasted 4 years, and felt its too late to apply to mba so now he just works some hourly job, tryin to pay off his debt etc... The saddest part for that friend was the time lost. everyone else in his class went the corporate route and after 4 years all been establishing themselves. just the risk associated with starting a business~
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What businesses were your friends involved in?
 
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