More Risky: Small Business Owner or Trader

Which is more risky - small business owner or trader?

  • Small Business Owner

    Votes: 49 48.5%
  • Trader

    Votes: 52 51.5%

  • Total voters
    101
Quote from lpchad:

On the heels of my last thread, it was suggested that being a small business owner is more risky than trading.

Let's have some discussion on this.
Small Business owners and Traders are both businesses and require good business management skills. I have done both.

Small businesses by themselves do not expand well with out adding other people. This is wher trading has a small business beat. It can, if managed right, produce high returns with minimal overhead.
 
Quote from lpchad:

On the heels of my last thread, it was suggested that being a small business owner is more risky than trading.

Let's have some discussion on this.


IMHO

They’re of equal risk, and both subject to high failure rates

However

I believe the biggest difference is more “external” rules / guidelines exist to structure a business with..., whereas the majority of the rules / guidelines to structure trading come from within the trader.

Take Care
 
Quote from lpchad:

On the heels of my last thread, it was suggested that being a small business owner is more risky than trading.

Let's have some discussion on this.

Trading is less risky because you can manage your risk much better.

However trading is harder to make a profit at. Its like running a business and paying retail prices for all your inventory.
 
Trading cannot be compared to running a small business at all. Running a business would be so much easier than becoming a successful trader would be. The might seem comparable and the failure rates may be similar, but the type of person that can trade and make a living is rare. Trading is a discipline, a lifestyle. Someone who trades has chosen a life that most people could not imagine dealing with on a day to day basis.

A business has too many factors that determine success or failure. If one type of business fails, another business can be started. A trader has only one factor of success, themselves. If someone cant handle the discipline, and work that must go into trading, thats it, they werent meant to trade.

I believe trading is one of the hardest things to do as a profession.
 
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