Why Trading Is The Best Business In The World!
In my experience, there are only 3 ways to become a multi-millionaire:
- Trading Stocks and Options
- Investing in Real Estate and
- Running a Successful Business
Personally, I am doing all three, and trading stocks and options is my personal favorite.
In this article, I will reveal why trading is the best business in the world!
Before I explain why trading is the best business, let’s talk about the difference between “trading” and “investing.”
Trading Vs. Investing
When I ask people if they have been trading before, they often say:
“Yes, I bought Apple 2 years ago, and it’s doing well right now.”
THAT is not trading.
THAT is investing.
Here are the main differences between trading vs investing:
|Long-term approach, often holding a stock for years||Short term approach, usually 5-20 days|
|Entry based on “hot tips” or “gut feeling”||Entry based on indicators (scientific approach!)|
|Decisions based on emotions, often “hope”||Decisions based on probabilities|
|No exit strategy, often exiting when it “feels right”||Know your exit BEFORE you enter a trade|
|Make money when the market goes up||Make money when the market goes up or down|
|Concerned with the overall economy||Don’t care about economy, presidents, China, Europe Trade what you SEE, not what you THINK|
Is Trading Better Than Investing?
And here’s why:
❌ When investing and you have a long-term approach, you have to be concerned about what’s happening in the world: Who’s the President? What’s going on with China and Europe? What about the overall economy, etc.
✅ When trading short term positions, these things don’t matter.
❌ When investing, you’re typically BUYING and holding. And you hope that the market is going up. If the market is crashing, your positions will suffer.
✅ When trading, you can benefit from a rising AND a falling market. In fact, often you will make more money in a falling market because a market falls twice as fast as it goes up.
❌ When investing, you have very little control. You are in it for the long run, and you shouldn’t make any adjustments to your positions.
✅ When trading, you are actively managing your positions. And you can adjust them daily. Therefore trading gives you more control.
And these are only a few reasons why trading is better than investing.
Learn how to trade, and you will run circles around long-term investors!
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Trading vs. Real Estate
No doubt: Investing in real estate can be very lucrative, and it can help you to become a multi-millionaire.
I personally own $10 Million in real estate.
Yet, I prefer trading over real estate, and here’s why:
❌ When investing in real estate, you have to find the right property, negotiate the best deal, do all your due diligence, deal with inspections, take care of financing, prepare contracts, …. When buying a single-family home, this can take weeks. When buying apartment complexes, this can take months! And when you are selling your property, it can take weeks and months, too.
✅ When trading, you push a button to BUY, and you push a button to SELL. And the transaction is completed in a matter of seconds.
❌ When investing in real estate, it can take months and sometimes even years before you make a profit. And while you’re invested in real estate, you’re at the mercy of the markets: If there’s an economic downturn, you might not be able to find renters. And if the real estate market crashes, you might not be able to sell your property with a profit.
✅ When trading, you only hold a position for 5-20 days, and therefore you’re not subject to recessions of economic downturns. You have much more control.
❌ When investing in real estate, you need to bring at least 20% of downpayment to the table. So when you try to buy a $200,000 home, you have to have at least $40,000. And if you try to buy an apartment complex for $4 Million, you need at least $800,000.
✅When trading, you can get started with as little as $5,000. I personally started with trading FIRST, and then I started investing in real estate.
❌ When investing in real estate, you have to deal with tenants, code enforcement, unfair tax appraisals, fair housing laws, etc. You have to find tenants, make sure that they are paying rent and NOT trashing your property, you have to make sure that the AC and water heater is working and the toilet is not clogged, you need to evict them when they don’t pay the rent, you have to renovate the house after they move out, … sounds exhausting, isn’t it?
✅ When trading, it’s just you and your computer. When you feel like buying, you press a button. You never have to talk to anybody. Nobody is calling you in the middle of the night informing you that a drunk tenant drove through the fence (TRUE STORY).
Trust me, trading is MUCH less stressful.
Long story short:
If you don’t have millions of dollars yet and a team that can take care of your properties, then start with trading to build enough capital before you invest in real estate.
Trading vs. Business
Running a business is difficult!
After all, you have to deal with….
- Accounts Receivables
- Tax Laws and the IRS
- Social Media
- Customer Reviews
… and the list goes on.
When trading, you need to master only 3 things:
- Finding the right stock to trade
- Knowing when to enter
- Knowing when to exit, either with a profit or a loss
Master these 3 things, and you will succeed as a trader.
Also, when you start a business, you need at least $50,000 – $100,000 in start-up costs.
When trading, you can start with as little as $5,000! That’s only a fraction of the money you need for starting a business.
Finally, when trading, you will know whether you are right or wrong in a matter of days.
When running a business, it usually takes YEARS before you’re making a profit.
Why Trading Is The Best Business
As you can see, here’s why trading is the best business:
- It’s simple:
All you need is to master 3 things, and you can succeed. Investing in real estate or running a business is MUCH more complex.
- You can get started with as little as $5,000.
When investing in real estate or starting a business, you need $50,000 – $100,000… maybe more. When trading, you can get started with as little as $5,000.
- YOU are in control
When running a business, you need to rely on your employees, the economy, your vendors, and many other factors. And when investing in real estate, you need to rely on your property management company, your contractors, your tenants, your lawyer, … you get the idea. When trading, it’s just YOU and your computer. YOU are in control. Only YOU are responsible for your own success.
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