The Huge Advantages of Treating Your Trading As The Business That It Is
Filed under: Day Trading Forex Currency, trading as a business
When it comes to business & investment pursuits, trading truly is a great business – but only if you treat it as the business that it really is. Most traders get around to this after taking several financial and mental beatings, but it when you finally do, the rewards are great.
Where most traders go wrong with it starts at the very beginning of their trading careers. They see trading more as a simple way to make some money, rather than a real business – and they pay a steep price in both financial and personal terms for this error.
Remember when you first heard about trading? It sounded relatively straightforward and potentially very lucrative while offering many great benefits: no employees, low barriers to entry, relatively low startup capital, just to name a few.
It didn’t take long though to discover that it isn’t quite as easy as it seemed at first, did it? There are hundreds of choices to make and the possibilities seem almost endless.
Now because trading is often presented as ‘easy money’ and not a real business, it is quite common for new traders to just jump in with live trading thinking that if they can just start making some money with it, everything else will fall into place. Either that or they just aren’t considering the challenges of making that money consistently over time.
When you approach trading as the business that it is, you realize several truths that make life easier in making a success of the endeavor. You also realize several significant benefits and advantages that otherwise would elude you.
First of all when you mentally approach your trading as a business, it has an entirely different look and feel. Many traders view trading as their future and for some it even becomes their identity. When it is your business though, you remain detached to a degree because it stays separated from you, an activity in which you participate, a business that you own – while you keep your identity whole. The feelings will still be strong, but at least some separation and needed detachment are there/
Secondly, without an entrepreneur’s mindset, the whole activity of trading gets organized only to a limited degree. For those with the ‘easy money’ view of trading, it will only become organized and structured to the extent that you can get started. When approached from the view that it is a business to be built, much more detail and forward thinking is brought to the matter, giving realism and proper perspective that otherwise is absent.
Third advantage is that of structure and patience. You know that businesses are not built overnight, so the expectations from the onset become more realistic and thus more manageable. If you are looking to ‘make lots of money fast’ instead of building a business, you will have disappointments and frustrations due to the unrealistic expectations not being met.
You avoid tremendous opportunity cost. Every month that goes by that a trader continues to trade for little or no profit represents an opportunity cost because their time has been spent and investment capital tied up when it could have been generating a return elsewhere.
Probably the greatest advantage to treating your trading as a business is that of compressing the time to profitability. When approached realistically from the proper viewpoint that trading is a real business, this causes you to properly plan your business, thinking through most matters that otherwise only get addressed as errors are made. The most common denominator among failed traders and failed businesses in general is the lack of a business plan.
Go to any bank, angel investor or venture capitalist, and tell them that you have a great idea to make money. Then tell them that you have no business plan. They will tell you to go away, without giving you any money or even the time of day – because they’ve learned over decades that without a business plan, your odds of success become about 10%. They also know that even if you do eventually succeed, your time to profitability will probably be unacceptably long for them to get their money back.
Another way, and probably the one with the greatest impact, in which the business approach gets you to profitability faster is that with a working plan in place, you will avoid the many detours and wastes of time and resources that can too easily occur without it. How many traders do you know that have tried several different markets or at least different systems, yet still are not making the money they want? This is but a small illustration of the savings of time and capital.
If you’ve enjoyed this article, feel free to watch the video presentation “Trading As Your Business” which expands on the matter by going to this link,
Forex Trading Strategies - Consistency Is Key Component
While making money as a trader is always nice, to do it consistently and reliably is really the main objective.
I mean, even a blind squirrel finds an acorn from time to time.
But if you want to thrive as a trader, you simply must focus on your consistency.
Not the profit or loss on each trade.
Not the headlines or the charts.
Focus on your consistency - an an input rather than an output.
Since you are already trading, the first step to improve your consistency is to simply focus on the process of trading itself.
Trading IS a process so the concepts of process control and process improvement definitely apply here - and can make your trading more productive.
The second step (usually the first for those that haven’t already begun live trading) is to focus on your operation as a whole.
This means taking a serious look at your trading business, stepping back far enough from the tree in your face to see the whole forest.
If you do, you will find that you have a better bottom line at the end of the month and the year.
“Focus on the process” is what has transformed many companies in many industries into market leaders and highly admired organizations. Best of all it really does make matters much simpler and much more enjoyable.
Not sure how to make it happen in your trading business?
Have a great end of the week!
Cheers
Brian
“The Trading Turnaround Coach”
P.S. When you broaden your focus you see more clearly and with less stress because things fall into a more proper perspective - and you’ll find that addressing issues and making real progress becomes easier.
Click here to make your trading more consistent
Forex Currency Pair Round-up and Coaching Review Video With Bill Poulos
Since alerting you to the opening of Bill Poulos’s Forex Profit Accelerator Group Coaching Program on Monday, I’ve received numerous emails requesting more info on it.
Well, I just got something BETTER.
It’s a 8 minute, 55 second video preview of an actual live group coaching session held just last week for one of Bill’s other coaching classes so you can see what his actual students see.
(please allow the page a few seconds to load & then press the play button)
You’ll get a taste of what’s in store for you when you join Bill as a student of his new program before the doors close next Tuesday, March 16th, at 11:59pm Eastern (New York time).
Have a great weekend!
Cheers
Brian
“The Trading Turnaround Coach”
P.S. It looks like Bill’s member’s website preview is still open, too, where you can pick up some extra complimentary bonus video training, and also get access to his “Pip Feeder” service.
I anticipate he’ll pull this offlint to coincide with the closing of his program next Tuesday, so make sure you click on the link below:
Your username is: readyto
Your password is: enroll
Forex Trading Tactics Free Live Q&A Webinar
Did you miss Tuesday’s live coaching sessions? If so, all’s not lost…
…Mac X himself is going to hold a live Q&A tomorrow night at 8:00 PM EST.
This is important, because every trader gets started with the dream of becoming financially independent.
Well, Mac started at ground zero… with nothing but his guts and determination…
…and quickly built a trading empire, which now boasts of over 20,000 students! (You know he’s got a killer method with that kind of a following.)
Here’s your link to get on the call:
=> Click here to register for the complimentary call
His private consults, which he almost never does anymore, go for $1000/hour. But you can ask your questions for free.
A few minutes with Mac could change your trading life forever.
What’s that worth?
Don’t miss this opportunity to get on the line with a legend:
=> Click here to register for the complimentary call
Cheers
Brian
“The Trading Turnaround Coach”
P.S. - I hope you didn’t miss the live trading webcasts on Tuesday… but you can still download his software free. Plus, there’s the Q&A with Mac tomorrow night - something that no one should miss!
=> Click here to register for the complimentary call
Free Live Forex Coaching Session Tomorrow
My friend Mac has a special treat in store for you tomorrow. He’s going to show you how automatic trading software can be used even during economic announcements.
So he’s going to have his top trader, James Carter, trade the Non-Farm Payroll announcement this Friday.
Don’t miss it!
=> Register now for this live coaching session!
James Carter is going all out for this session.
In fact, he’s prepared to:
* Answer any question you may have about trading
* Demonstrate Mac’s new automated trading software
under an unusual condition…
* Trading the non-farm payroll! It will be the
ultimate test of the software - can it adapt?
Make sure you’re there for the online event of the year!
=> Register now for this live coaching session!
Cheers
Brian
“The Trading Turnaround Coach”
P.S. - We’re going to see what Mac’s automated software is capable of when James Carter demos it live trading the Non-Farm Payroll announcement this Friday. Plus, he’ll answer all questions in this free coaching session. Sign up now, while there are still spaces available:
=> Register now for this live coaching session!
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Disclaimer - You should use your own attorney approved disclaimer. Here is a sample:
Government Required Disclaimer: This commentary is for informational and educational purposes only. The information contained in this document is not a solicitation to buy or sell any security by New Ireland Ventures, LLC and/or its affiliates, and is not to be used, read, or otherwise available to anyone in a jurisdiction where said availability would be against local regulation or law. Any and all opinions, data about the market, recommendations, etc. are subject to change at any time, and without prior notice. Forex trading involves substantial risk, you can lose a lot of money, and is not suitable for all investors.
Any earnings mentioned are not typical. Your results may vary. Nothing in this publication or any other by New Ireland Ventures, LLC should be considered financial advice, legal advice, or any other advice. Seek out the advice of a qualified professional before any trading, investment, or business activity.
CFTC RULE 4.41: HYPOTHETICAL OR SIMULATED PERFORMANCE
RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL
PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT
ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN
EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED
FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH
AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN
GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE
DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION
IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO
ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.