Is learning the trading business like learning any other business. The simple answer is yes it is! Regards Johno
it is somewhat. Being well-capitalized, well-managed, and skilled. But even with all these, most traders still lose their wad. You either have an outperformance and good money management or you don't
I agree that the similarities outnumber the differences. Both endeavors require the same persistence and ability to find, face, and correct one's errors without giving up too easily. In fact, I would argue that trading is easier. In trading, yes, you are dealing with the unknown, but the same is true in a business. Some of the problems that come up in running a business are things you did not anticipate, and inevitably a few are things that you could not possibly have anticipated. Only one real problem can occur with trading: you can lose money. So there are really no surprises. Perhaps there are more subtle or different skills to learn with trading than with running many businesses, but there are no unanticipated problems. I suppose the way this comparison looks to you hinges on whether you relish or dislike surprises. Some people enjoy the challenge of successfully solving an unanticipated problem. I hate surprises, but that's just me. As someone who started in the markets just prior to 1987, to me there some unpleasant events associated with trading, but there are no real surprises.
Trading is more similar to gambling than running a business. With a business, if you can offer a better product, service, or price, you will be successful. If you buy inventory, it's unlikely the value of the inventory will drop 10% the next day. Like gambling, you can get an edge in certain games like poker or blackjack, which may sustain you. But like gambling, you have to fight human urge to double down, want to break even, etc. But the biggest difference is that it is easier for a trader to be a successful businessman than the other way around.
Disagree completely. Running a hardware store is a bit different then running a software company. Sure, the rules of the bottom line remain the same, but little else. Trading has few similarities to running a hardware store, other then bringing in more then you spend being the goal,and of course it must be learned.
Many businesses fail often spectacularly within the first few years, does being in business automatically make these people " good businessmen" I suggest not. Any missteps I've made in business or trading, upon reflection, have always been a result of not adhereing to sound business principles and practices. A greengrocer who fails to buy his stock from the markets at a lower price than he can sell his goods will fail. A fisherman who needs more bait than the fish he can catch , his business will fail. An Options/futures/share/whatever instrument trader (I use the term trader loosely) who fails to enter at a level that allowes him to turn a profit will fail. Every business has it's own set of challenges that need to be overcome and this always requires dedication, discipline and hard work. There is far more required to success in business than merely the mechanics, as also in trading! If you remove the religion, bullshit, misinformation/lies and carpetbaggers from the trading equation you are basically left with business principles! Regards Johno p.s. I just read the previous posts and am left with the thought that neither posters have ever been successful businessman or successful traders, not that there is anything wrong with that!
Ah, but don't you realize that everyone here is a champion trader! Also, I would describe myself as a speculator not a trader! Regards Johno