An interesting point of comparison that has popped up in one of the threads here, is: trading business vs hot dog vendor. Of course, "hot dog vendor" is just a metaphor for a simple, small business operation. It could be a small store or restaurant. 1) Cash flow patterns Hot dog: There must be seasonal fluctuations in demand, I guess, depending upon the climate conditions in your location. So you may do well in the summer, not so well in winter. More predictable patters in demand fluctuations, and thus, cash flow. Trader: Not affected by seasonality, probably. Unstable patters, often erratic equity curve. 2) Risks Hot dog: a) competition from other hot dog vendors; b) storage, managing supplies properly. Trader: "substantial risk of loss", as they say. 3) Logistics Hot dog: A hassle, a lot of running around. Buying sausages etc Trader: Almost hassle-free. 4) Operations, units of measurement Hot dogs: 1 hot dog sold. If sold, always a profit (say, 99% probability of profit). I mean gross profit. Trader: 1 trade. If initiated, could result in either a loss or profit (say, 60% chance of profit, 40% chance of loss) 5) Costs Hot dog: equipment, sausages, bread. Trader: PC, software, communications. At the end of the day, unless you're trading for financial entertainment only, the specific area of application of your capital is not so important. Thus, if the hot dog business is a better deal, so be it.