Posts

Showing posts with the label day- trading-business-structure

TRADING IS A BUSINESS

Image
TRADING IS A BUSINESS   What do you see trading as? Do you see it as: * An exchange, involving the buying or selling of goods or services? * A game that can be exciting for speculators? * A tool, for example, one that enables traders to hedge the market? * A war, albeit one without bloodshed? * A business that happens to be the most difficult thing in the world? Depending on the person giving the answer, there are elements of all of these in trading. However, our answer is that we choose to see trading as a business. There are two basic types of participants in the futures and commodity markets: hedgers and speculators. The hedgers are those seeking to minimize and manage price risk. Speculators are those willing to take on risk in the hope of making a profit. It doesn’t matter whether you are either a speculator or a hedger. We all need to treat trading as a business. Why Do You Need a Business Plan for Trading?   In the following, we wi