Trading and entrepreneurship share more similarities than many might think. In fact, if you only look at personality traits, people who succeed in business and as traders are usually very alike. But there is more to it than just that, and by understanding the similarities, you can improve your own success rate.
We asked the expert traders at BullMarketz.com if they could give us a closer look at why traders should think of themselves as entrepreneurs.
Similarities that Traders and Entrepreneurs Share.
To become a professional day trader that manages to live off the profits, one needs to look at trading as seriously as a business owner looks at their business. You will have to accept that trading will be your new job and that it will become a major part of your life.
In order to do so, every trader should adapt to the mindset of a business owner, and in my opinion, the following three aspects are the most important to implement.
Similar to a business owner, you need to set clear goals of what it is you want to achieve with your trading and when. For example, when do you want to become profitable? How much are you going to make? How much are you going to work? etc.
It’s important that you set up short-term and long-term goals and that you stick with them. Execution is key and without goals, it’s hard to create a plan which is essential to succeed as a trader and an entrepreneur.
Risk is a natural part of both trading and running a business. In fact, risk is something you will have to accept and embrace. However, as a trader, risk will be even more prominent than when running a business. You see, as a business owner you will risk failing and maybe having to start over again or changing your focus at some point, which can be daunting although not devastating. As a trader, on the other hand, you will put yourself and your funds at risk several times a day, and if you can’t handle the pressure of risk, you won’t make it far.
Let’s be honest, running a business and being a professional trader is nothing like working a regular job. In order to succeed, you will have to spend long hours, days, and months, fully dedicated to the cause. You will have to learn new skills on a daily basis, you will have to be willing to put aside your social life and hobbies, and you will be required to dedicate all of the time and effort needed to make it.
For those who are willing to do that, the sky will be the limit and you will be able to reap the benefits of making money on your own. For those that lack dedication, a regular job is likely more fitting.
Years of experience from the trading industry coupled by being surrounded by startups has taught me that traders and entrepreneurs tend to be driven by the same ambition and goals. Naturally, this has also resulted in the most successful traders sharing a similar mindset and personality traits with successful entrepreneurs.
Because of this, I think it’s important that traders, regardless of experience and knowledge, try to find inspiration in the way entrepreneurs run their businesses and execute goals. At the same time, I think it’s important that entrepreneurs look at traders for inspiration, especially when it comes handling risk on a regular basis.