Understanding trading as a business

Understanding trading as a business

If we operate regularly in the market certainly we do to win and the only way to profit long term’s to treat trading as it’s a serious and real business which we view as any other business.

Compared to other business types:
• Little initial investment capital
• Doesn’t require a building or special equipment
• Don’t try to employees, customers and competitors (the traditional way)

Immediate psychological benefit of seeing the trading as a business is that it provides a vision and distinct feeling. Many traders see it as their future and for some it becomes part of their identity. We view it as a separate activity in which we participate but doesn’t define us as people. It’s a business that we’ve and that doesn’t constitute part but our overall identity. The approach gives us as a business separation and detachment necessary.

Build a long term business means inherently organize and systematize all trading activity, having an eye on the future. This requires thinking about the inclusion of objectives and resources along with the activities through which these objectives will be met.

Thus, our operations will be limited to a very precise degree if we’ve the vision of it only as "a way to make money." A business that’s thoroughly planned and organized provides security and relieves pressure and stress also helps us stay realistic and maintain a healthy perspective.

Every month that passes in which the trader operates and gets little or no benefit represents an opportunity cost because you’ve spent time while their investment capital has been tied up when it could have been used to generate profits in other businesses. If a month no profits are made and generally any process isn’t performed to the profitability of our business in trading.