Difference between trading and traditional business
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    Difference between trading and traditional business

    Hi there!

    How do you think, what is the difference between trading and traditional business, say, entrepreneurship?
    Some people claim that there are no differencies between these two things and say – «you should create a business plan» e t.c. While every commercial venture should be previously planned, I would also claim that trading itself differs significantly from other entrepreneurial spheres.

    First, and foremost, trading also requires startup capital like any other venture. And yes, this capital can be lost. There is a famous joke, that says: «No, your capital is not lost, it just moved to another pocket» 

    But let’s think of a trading as a venture. I think that probably the difference that is not so easy to spot is that traditional business pushes entrepreneur for more activity, and trading would require less activity from a trader. It’s ok to move toward some goal for traditional entrepreneur, to be pulled by this goal and generate more activity. But when it comes to trading, we find that trader should not be pulled to profits but rather he/she should be pushed away from losses.

    It’s not a secret that average results of traders are frustrating. Achieving «normal» results in trading means that you will suffer financially. Below I provide you a statistical distribution according to official NFA information:

    distrib.jpg

    This picture shows that successful traders belong to pretty small universe. In doesn’t mean that 99.99% lose money in the market, but we are talking about steady results.

    So, to succeed in this business, trader should do the opposite relative to traditional entrepreneur – he should generate less activity and chances are greater that in this case trader will have chances to survive.

    Here comes expression – «Trade less to make more».

    Good luck!

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    Last edited by Value trader; 01-29-2014 at 06:20 PM.

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    Quote Originally Posted by Value trader View Post
    There is a famous joke, that says: «No, your capital is not lost, it just moved to another pocket» Here comes expression – «Trade less to make more».
    I just knew that joke So, the conclusion from what I read is we must trade less but accurately so we can make big profits without spend more time in front of our pc, unlike entrepreneur did. There is also a good questions about this "Why we spend 24 hours daily to trade and make money while we can make a lot in couple hours, maybe less? Trade less, spend less time, make good prorits and use valuable time with family.

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    forex trading is an icon of modern business, the market is opened 24 x 5 hours per week, and we get the largest chances to maximize our earning, but it does not mean, we have to stand by all days for it, and even it makes us easy to do business, because we only need to spend less of time for it and make double income,and even more than it,

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    There are a lot of differences between tradition businesses and trading business as traditional business require a good capital 24 hours involvement place to keep stocks and a lot of competitions where as trading business is home based do not require a huge capital to start and moreover there is a lot of flexibility for time.

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    Every trader has a chance to survive, I like this sentence very much :) , every trader wanna make some money, get profit from trading and buying some good when make some withdraw, but hard work and patience are the keys. We have to learning every day and we can work 24 hours a day

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    I learnt a lot reading your post its very insightful.there's defiantly difference between the traditional form of entrepreneurship and trading in forex, mainly in the aspect of psychology, or should I say in the mindset of a trader, an entrepreneur would need more of his or her physical ability to push his or her dreams forward in making it a reality, while a forex trader would need more of his mental ability to stay calm and disciplined to make the right trading orders and entries.

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    The difference is too big between a traditional business and the trading. In trading what all we need to take is take effective decisions whereas in traditional business one has to manage the employee, stock, clients, products or services . There are both pros and cos to both of these types of business. In trading, since there is no supervision one may get lazy or careless and this also may lead to lot of bad habits in the end. However trading also has the potential to reward a trader unlimited. Hence I would say trading is more of a psychology game.

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    Trading of forex is an online trading, it is sensitive and its is riskier. One huge difference between forex and traditional business is the guaranty that you will get your money or retain your product, which means that you have little or nothing to lose, but in forex trading, it is either win or lose, which seems to be too harsh to me.

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    Quote Originally Posted by cozard007 View Post
    Trading of forex is an online trading, it is sensitive and its is riskier. One huge difference between forex and traditional business is the guaranty that you will get your money or retain your product, which means that you have little or nothing to lose, but in forex trading, it is either win or lose, which seems to be too harsh to me.
    true what you say that forex trading is not going to be easy and full of risk and so soon we will find the loses in this trade and not like a traditional business trading long we felt that the traditional business allows traders to experience the loss is not too fast in trade so with so we have much to learn in forex trading to manage risk as well as possible in order to be more secure

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    This forex business is open for 24 hours a day and 5 day per weeks, we trade whenever we want, we can be the boss for ourselves, nobody will fire you out from your job, there many different from traditional business on earth, even somebody who don't have university education still can work on forex trading.

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