Trading is a business. It seems a bit like a cliche. The problem is that many traders, especially small or part-time traders, don’t treat it as such. Maybe because it seems so simple. Trade whatever it is you trade. At the end of the month if you have more in your account. However it is more complicated than that.
There explicit costs, including commissions, data, news, computing power, etc. There are also implicit costs like the value of your time. The fact of the matter is that most traders do not succeed, in part because they did treat their trading with the seriousness of a business. In today’s screencast we highlight a couple of posts that reminded us on the importance of treating trading in a business-like fashion.
Posts mentioned in the above screencast:
Burton Pugh, “Trading is simple another form of business. Treat it as such.” (Crosshairs Trader)
“We can’t control the markets, but we can control our overhead. ” (Chicago Sean)