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.
IMHO Theyâre of equal risk, and both subject to high failure rates However I believe the biggest difference is more âexternalâ 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
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.
I'm a trader, and as a few days ago, small business owner...pm me a year from now and I'll let you know.