is trading less riskier then starting a business?

is trading less riskier then starting a business?

  • Yes

    Votes: 18 39.1%

  • No

    Votes: 21 45.7%

  • Not sure

    Votes: 3 6.5%

  • Others

    Votes: 4 8.7%
  • Total voters
    46
Quote from ronblack:

Swan Noir raised some excellent points here. Let us try to put this in a different way:

99% of all professional traders either fail or underperform their benchmark.

I think the numbers may be worse, like 99.9%. But that does not mean you should not try to become a professional trader. Even while underperforming you can make a lot of money.
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wow.... at one time I thought of pursuing this path call active trading another time I stop and tell myself why waste my time,effort & money since professional traders with lotsaf resources do not make money in the long run...

I'm confused :confused:

I've just watched the movie Rogue Trader - Nick Larsson of england

:confused: :confused: :confused:
 
If I had wanted to say there was no chance I would not have said this:

3) Why would I count most guys who work full time and think they can do this from their job and even their cell phone? Maybe 3% of them can actually pull it off.

Quote from hanzahar:

are you saying there is no chance for part-time traders?
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Swan Noir really raises a point.

To consider loosing moeny in a trading business a failure, one also must be able to trade in the first place.

If I decide today - as a dude who loves cooking for himself a little - to open a start rated resturand and fuck up because my cooking is not good enough that is not a business failure for the restaurant, it is a moron thinking he can cook ;)

So, to start trading as a business, one first has to be a trader or have a successfull trader. Learning a complex job while running a business doing this does not work in pretty much every area.

Want another one? I LVOE CARS. I love little sports cars.

Me opening a garage or tuning shop - and failing - would not be a failing business, it is a dude that is not a mechanic trying to make a mechanics job. Failure.

So, to be taken serious - trading as a business - start being a trader first place (sim and own personal side account successfull enough to be considered stable), then we can talk of the business side failing.

I consider trading as a business less risky than most other activieis, business wise. Assuming you have or are a good / decent trader... you dont have to deal with a lot of shit real businesses have, mostly this particular idiots called "customers" who demand to haggle about prices, delviery and contract details left and right. Your costs are pretty irrelevant - yes, it makes a difference whether you pay 100 or 200 USD per month for data, but it would be nearly as bad on your bottom line than the part time people demanding 50 cents more per hour because your margings are a LOT higher. Many businesses struggle to be net positive because they are in razor thin cost industries. You are mobile... you can trade worldwide, without in large scale regards to even language. You dont need expensive shop space (look at the rents in prime locations - and running a shop or restaurant location makes a difference). Trading is very simple as a business and a lof of unknown factors are just not there.

Heck, I have an on and off IT consulting business the last 20 years (there have been phases i just was not active) and man, the office politics and idiocy and price idiocy of larger projects is more than I can safely handle. A trading floor is a sane and calm environment compared to the combines moronity of some middle management in larger companies that you have to deal with because those morons ruin your project budget.

But still, for the question to make sense you msut remove all the wannabe idiots from it first. Trading as a business means you have to have a profitable trader in the first place. Otherwise it is not a business. Same way you dont open a resturant without a cook.
 
So you belive it is more like one in a thousand that succeed? I'd hate to see the intellectual capicity and work ethic in the bottom 900.


Quote from ronblack:

Swan Noir raised some excellent points here. Let us try to put this in a different way:

99% of all professional traders either fail or underperform their benchmark.

I think the numbers may be worse, like 99.9%. But that does not mean you should not try to become a professional trader. Even while underperforming you can make a lot of money.
More...
 
ok peoples have different opinions.

the fact that you've replied my posts (thank you) tells me you are one way or another an active trader.

i am not sure what successful trader means as with small business the goal is probably to sell the business.

ok I have to be a trader frst on sim if profitable and passionate then have a trading business...
 
"Simulations of a random system since SPY inception show that nearly 35% of random traders, human or automated, have made some profit. However, only 1% of random traders were lucky enough to exceed the buy and hold return with dividend reinvestment, estimated at 8.60%. "

According to this then the 90% failure rate is an exaggeration but beating the market is still too hard.
 
Quote from hanzahar:

makes sense...

thanks
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Thats the problem with short-term or intraday trading today (or more explicitly so than ever before), what makes sense usually doesn't make you money.

The programs have skewed the risk/reward profile in this time frame to heavily handicap the independent risk-averse trader. If you are a sensible man with a family to feed, who prudently cuts losers short and waits for the "sure" things to expose your capital, you will most likely fail.

I've been trading equities intraday since '98, and the market holds the highest risk AND reward I've ever seen since for the independent trader. In other words, it's THIN out there, and actually well suited for individual traders looking for movement. BUT at any time you think you are right about a trade - rest assured the market will TEST your RESOLVE, and you will likely only pass this test by throwing all your discipline and safety measures out the window. The market will teach you that the way to succeed is to do the wrong things - that is what you are up against right now. If one ran a business the same way one traded successfully, you'd run that business right into the ground, the origin and paths to success are just too disparate. And no, it's nothing to do with RANDOMNESS at all.

Just my .02, I'll go back to lurking now :)
 
hi guys I am a beginner & just read out the trading book. Then I realized that there are 3 things that u should keep on mind, 1- time frame use 2-money management 3- conformation of trend indicator. If u follows these three things then defiantly u will make a good money.
:)
 
Quote from hanzahar:



i am not sure what successful trader means as with small business the goal is probably to sell the business.
More...

If you can cover your necessities AND earn a few bucks in the process by pressing a few buttons then you are a successful trader. It sounds simple, but incredibly hard psychologically to accomplish.

The goal of a small business -> medium sized business -> large business -> get your shares listed on the exchanges. It sounds complicated, but simple to implement if the factors are in your favor.
 
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