More Risky: Small Business Owner or Trader

Discussion in 'Professional Trading' started by lpchad, Jan 4, 2009.

Which is more risky - small business owner or trader?

  1. Small Business Owner

    49 vote(s)
  2. Trader

    52 vote(s)
  1. 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.
  2. You don't equate trading to running a business?
  3. That's his FIRST problem right there.

  4. Trading is like a practice of the lowest sorts. It's a daily, solitary grind. If you die tomorrow, there are no residuals and no hard assets to monetize. It all goes with you in your grey matter.....
  5. As a small business owner I could buy an apple cart, go to the wholesaler, buy some apples and sell them.

    As a trader, all the apples I buy have worms in them and they are hard to sell.
  6. if you have the capital to do it - be a business owner by buying stock. no employees, administration, government pestering, market cycles, cocksucker banks, inventory or bullshit.

    Trading is a business like any other. It's hard to make $, requires loads of work and discipline and time. Very few are capitalized to do it and few succeed from what i have seen but very few succeed in business (outside of squeaking out a shitty living).

    Hire Bill Gates or Steve Jobs to work for you via stock ownership and if they don't perfom - dump their ass with your sell button.
  7. Being both, but not primarily a trader, I picked trader.
  8. Stosh


    I've done both. Made a living for over 30 years owning a small construction business.....did stock investing as hobby. Retired now.......started trading full time a year ago....great timing, but hanging in.
    Answering your question: In my business, I often did dumb things but was able to overcome them by working much harder. I think you probably have to be smarter to be a successful trader......but I love not having to deal directly with the human race all day long. Stosh
  9. lpchad


    Yes, I certainly do equate trading as running a business. I meant a traditional small business with employees, inventory, etc. vs trading where you don't have to deal with anyone
  10. lindq


    There is no easy answer, because it all depends on how the small business was started, and the capital obligations of the business owner.

    If it was bootstrapped and financed from growth, there is relatively low risk. But if one puts a substantial amount of cash into a startup or purchase, there is a lot of risk.

    But on the whole, having done both for a number of years, I'd say there is less risk in trading because I have more direct control over the variables that can impact risk, and I don't need to rely on others to get things done.
    #10     Jan 5, 2009