I have been trading for a while with a highly volatile and erratic equity curve and am nearly at the point of throwing in the towel. Before I pull the plug, however, I though I ask the more experienced traders in this forum whether trading can be treated as a job (earning a salary equivalent) of a business (staring small and expanding) Here I am differentiating trading from investment. Because, for example, if you start with £20,000 and make 15% a year, it is good investment return but not money you can live on.
Many businesses have started with a relatively small capital and have grown to be quite large and successful corporations. We all have heard the rags to riches stories of the past, but that, necessarily, is not what I am talking about. I have a good friend (who has, needless to say, always condemned the idea of trading for a living) who opened a coffee shop/snack bar with around £20,000 four years ago. He works in it every day and so far earns around £2000.00 per month out of it. Now as a percentage return this is much more than a 100% return because he earns this after expenses. Now he is looking at the possibility of expanding, and if successful, in a few years his initial £20,000 will grow much much more.
Although I have good and bad trading days my equity curve keeps meandering around the zero line and, to be hones, is slowly diminishing. If this was a business I have not been able to draw any profit/salary or what ever you want to call it, out of it.
MY question is this, and I know I might be prying here and apologize in advance for doing so, but an honest reply to guide me would be most appreciated. Is there anyone out there (except big banks etc) who is, has or knows anyone who has started with a small amount and either is earning a living out of trading or built up a healthy equity whilst living off their trading profit. Should I throw in the towel or should I persevere becuase thery might be light at the end of this very dark tunnel at present..
Many businesses have started with a relatively small capital and have grown to be quite large and successful corporations. We all have heard the rags to riches stories of the past, but that, necessarily, is not what I am talking about. I have a good friend (who has, needless to say, always condemned the idea of trading for a living) who opened a coffee shop/snack bar with around £20,000 four years ago. He works in it every day and so far earns around £2000.00 per month out of it. Now as a percentage return this is much more than a 100% return because he earns this after expenses. Now he is looking at the possibility of expanding, and if successful, in a few years his initial £20,000 will grow much much more.
Although I have good and bad trading days my equity curve keeps meandering around the zero line and, to be hones, is slowly diminishing. If this was a business I have not been able to draw any profit/salary or what ever you want to call it, out of it.
MY question is this, and I know I might be prying here and apologize in advance for doing so, but an honest reply to guide me would be most appreciated. Is there anyone out there (except big banks etc) who is, has or knows anyone who has started with a small amount and either is earning a living out of trading or built up a healthy equity whilst living off their trading profit. Should I throw in the towel or should I persevere becuase thery might be light at the end of this very dark tunnel at present..
