Trading needs to be treated like a business 🧑💼This is spoken about a lot but what does it mean?
In starting a business you would need funding and a business plan, right?
You would have realistic goals mapped out and be focused on your cashflow.
You wouldn't blow your 'cash' in recruiting too fast, or buying too much stock or spending too much on marketing.
Yet, in trading most don't have a plan. Or focus on protecting their cash.
They also don't think long term in line with their plan.
They over estimate their expectations short term and in doing so mess up what they could achieve long term.
You just wouldn't do this in business right?
No one would open or run a business you knew nothing about.
Most come in to trading thinking this will be easy! It's not and we all come in knowing nothing.
So again would you start any other business with no training or idea?
Most can keep the trading cash flow topped up as we all start out on this journey having another job to fund trading.
There is no such thing as a sure-fire way to make money online. However, if you seriously want to make money out of forex trading it needs treating like a business.
In a lot of ways, being a trader is like being an entrepreneur. It takes more than just knowledge and a killer idea.
It also takes hard work, discipline and mental preparation.
The reason it’s a good idea to treat forex trading like a business is because as a trader, your account is your own business.
Trading isn't about the quick money it's about being consistent.
That consistency comes from having a plan and sticking to it much like you would a business plan.
Treat losses as a cost of business and factor them into the plan.
The business plan for you the trader will be the strategy and risk management you opt to run.
Set realistic targets and goals this will ensure suitability, Much how good businesses set up there own goals and aims for coming year with out being to risky.
If you lack on the knowledge front in certain areas invest in education and training, No successful business neglects training and learning.
Invest in resources that will help your business grow. Yes TradingView is free but having a higher package and more data help me just as an example.
There is no other business in the world like trading where the over heads and start up cost are low, So if paid resources can kick you on to next level factor them in as a cost of business.
Keep treating trading as a hobby and it becomes an expensive one.
Start treating trading as a business with the ethos and cultures applied the same as those of successful businesses and that profit starts to come naturally.
Thanks for taking the time to read my idea.
Hope you all have a good weekend
Darren 👍
