Looking at Trading Income from an Entrepreneur’s Point of View

By Lawrence

Mesh trash bin with hundred dollarsMost people who are not interested in trading (or day trading) think of it as some kind of gambling. Many who work in the financial industry worship traders as some of them legendarily making millions every year. Yet, some others who are more familiar with the trading world know that majority of traders, especially retail ones, are really making not enough money, at least not enough to compensate for the stress and struggles. The opinions about trading income are pretty much all over the place.

Maybe it is a good idea to look at trading income from a different angle – as an entrepreneur who is planning to start a new business with excellent growth potential.

Once a trader is operating consistently, the trading income is often comparable to a very profitable convenient store with all the profit and all the salary paid to all the workers combined, without the relatively high operating cost overhead.

A good trader’s income is comparable to a very profitable high end restaurant with all the profit and salary paid to the head chef combined, without the high operating cost.

A well established good trader’s income is comparable to a small restaurant chain with all the profit and salaries paid to the main chefs combined, without the very high operating cost.

An established great trader’s income is often comparable with an established medium size industrial company’s profit without the high operating cost and headache in running such a company.

I am not trying to say that everyone should be trading instead of running other businesses. The main point is that the time and effort invested in learning to trade is well justified because of the potential growth with trading income is much more attractive comparing to, say, operating a convenient store. The barrier to entrance is low as creating a medium size company can take a lot of capital with many years of hard work, yet the risk of failure is at least as high as trading.


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