Question About Trading Vs. Traditional Entrepreneurship

[futurebondtrader 10]

Hello,

 

I am wondering the following:

 

1. What are the advantages and disadvantages of trading compared to traditional entrepreneurshop?

 

2. To your knowledge, how does the skillset of a traditional entrepreneur differ from the skillset of a successfull trader?

 

Thanks

[MightyMouse 12]

I think the greatest difference is the competition. Trading the market is as close to perfect competition as you can get. Other businesses can have quite a few barriers to entry which make it easier to maintain a niche or edge. Because of this, it is much easier to make more money elsewhere than it is in the markets.

[MadMarketScientist 11]

Interesting question! And as an owner of a trading site I'm actually doing both. Here is my take ...

 

1. What are the advantages and disadvantages of trading compared to traditional entrepreneurship?

 

Advantages to trading is that market, tools, education materials, are very well defined and readily available. You can start tomorrow with $5000. You just have to execute better than the next guy. But the simple fact that is easy to get started means it is very easy to rush in and trade without knowing what you are doing.

 

Now compare this with starting a company or trying to invent a product. If you build the best mousetrap is there even a market for it? Can you find investors to fund you? If you open a store you will need tons of startup capital before the first customer walks in. You are so dependent on other people to be successful; customers, suppliers, vendors, investors, etc. But if you are able to find a good network of people supporting\helping your business, things can really take off!

 

2. To your knowledge, how does the skillset of a traditional entrepreneur differ from the skillset of a successfull trader?

 

As an entrepreneur, your main job is to SELL. Sell to customers, suppliers, investors, employees, etc. You NEED them in order for you to be successful. A trader is a lone wolf.

 

MMS

[tradingmarket 10]

Business with a great idea can bring a very big amount of money in just a few years. In markets no matter how smart you are you won't become rich fast. I see trading like investing. Investing in a trading system. In a good year you can double or triple your deposit once in a year. In business you can make a lot more if you work hard. However, with trading you don't have to work hard.. you can fully automate the process by following your trading system. You can even put your trading on the automated robot and don't work at all. My bottom line is that if you have a good initial capital then stick with the markets but if you don't then better make some business and return to markets when you'll be ready. Trading/Investing requires a lot of money to make a living from it.