Home Based Business | Work at Home Ideas | Small Business Advice
Page: Forex Trading as a Business - Part Two

Forex Trading as a Business in Any Economy
- part two

4 reasons why self-employment sometime fails
and how forex trading business could be your answer

...continued from part 1

Statistics suggest that 80% of tech businesses fail, 50% of all new start ups fail, and the average cost of a UK business failure is in the region of L40,000, therefore it's curious as to why anyone chooses self employment. Quite frankly the stats should put everyone off and there's also the hidden cost; the wasted time, derailment of potential careers and many of the self employed rack up debts to go it alone; risking their homes as security. They make disastrous financial decisions which they may never financially recover from. Yet despite these alarming stats, or perhaps because of them, trading forex makes a competitive choice than many and we'll briefly explain why.

Our goal is that the Coach’s Corner is the embracing community that provides a safe environment through which traders can develop their skills and view of the market as they transition from new and struggling traders to successfully consistent traders.

If you are considering forex trading as a business, it's important that you prepare yourself well
with the knowledge of the market and finances, and learn 'how the game is played'.

1. Overheads

When asked why their businesses fail the majority of small business owners cite their floating and fixed overhead charges as a key reason. Renting premises, staff, insurance, marketing, advertising, utilities costs, etc, it all mounts up and it's always more expensive than the original business plan forecast. Overheads in trading are negligible.

2. Unpredictability

There are recessions in most economies every ten years (minimum). So not only do you have to get your business profitable inside the first three - five years, you've also got to hit a sweet spot (by accident or design), to avoid a contraction or recession in your economy. Recessions do not effect our business in such a way, we can profit from falling and rising markets, recessions can in fact work in our favour as volatility increases. (A good market knowledge and financial discipline are essential in trading business, especially in volatile markets, as one wrong assumption or a mistake, can send you broke quickly.)

3. It was a mistake

"It was a mistake, I wish I'd never done it". Incredible as it may sound, many supposed entrepreneurs actually set up, or buy their business out of desperation not inspiration, it can often be a knee jerk response to their current situation. Indeed, in the UK the figures bear this out. Many folk have taken self employment as their only route, as quite simply the full time jobs just aren't there in an economy that's seen: part time, zero hours contracts and self employment grow by over 50% inside seven years.

Many of the self employed will confess that enthusiasm for their self employment faded very quickly, but they then felt trapped and had no option but to carry on. Statistics also suggest they then borrow more money, put in further savings, not because they feel they'll turn the corner into profitability, but because they become paralysed with doubt, fearing that they have no other options. This situation is particularly prevalent with older entrepreneurs, exposing themselves to more financial risks. This situation is the polar opposite to trading in which we'll discover our enjoyment escalates, as we become more experienced and successful.

Should we fail then we may be able to limit our losses to a bear minimum, we may also recede from full time trading to part time trading, if we can't derive the level of earnings we need. But we can take every precaution to ensure that trading remains enjoyable and harmless to our long term welfare. (Once again, as a caution, according to stats, the level of success in forex trading can be as low as 3%.)

4. Poor judgement

Lastly; there's nothing new. It really has all been done before. Sure, there's many of us who might find a niche, spot a huge gap in the market and through a combination of: luck, skill and perseverance, will plough through all the obstacles and make a huge success of our venture. But the sad reality is that to most spotting a gap involves there being no dog grooming parlour on their local high street, and their level of research amounts to; "because they like pets".

Or they'll buy a Subway franchise and put their life savings and personal overdraft into the sandwich making business. There's perhaps only one in ten thousand businesses created that will be truly ground breaking. Whereas with trading your stock is your capital, you're operating in an extremely young business (Internet trading is only circa 15-20 years old), with no direct competitors, the more who enter our retail trading business, the better the liquidity, the tighter the spreads.

Any new business venture should include a good amount of research and be combined with your own skills or genuine likeness in creating certain products or offering needed services. This will get you through tough times, which you will certainly experience in your new business.

Forex trading business advantages

I'm sure readers can already gauge how setting up your own forex trading small business makes business sense versus the examples we've already listed. You have very little in the way of overheads; an Internet connection, perhaps invest in an iMac 27" for €2,000 and your account capital lodged with a reputable STP/ECN broker and you're in business.

You could be in business and trading for less than €10,000. But that includes your working (initial) capital. That might be all you need to risk until you're profitable. The worst case scenario that might be your loss for a year, if you place disciplined limits on it, but in direct comparison to what other small business owners lose inside a year, it's a relative drop in the ocean.

Content ideas Source:
http://blog.fxcc.com/ and http://www.learntotradethemarket.com/forex-articles

   Forex Trading Tips and Advice
Affordable Trading Options
Beginner Forex Traders
Best Days for Forex Market
Binary Options Strategies
Donchian Channel Indicator
Forex Is Not Gambling
Forex Market Explained
Forex Tips for Newbies
Forex Trading as Business - Part 1
Forex Trading as Business - Part 2
Forex Trading Beginners
The Elliott Wave Principle
Fundamental Analysis
Head and Shoulders Pattern
India Based Trading
Main Approaches to Forex
Moving Averages Trading
Picking a Forex Robot
Safe Forex Trading
Scalping vs Position Trading
Trade GBP/USD Currency Pair
Trading Outside Your Comfort Zone
Understanding Correlations
Using Forex Calendar
Zero Bound Interest Rate

Home Business
   Automated Home Business
   Boost Your Startup Success
   Business Leader Traits
   Business Startup Launch Party
   Business Travel Expenses
   Buying Car Through Business
   Effective Business Communication
   From Startup to Scale up in Canada
   Home Based Business in California
   Home Based Business Tips
   Home Business Startup Plan
   How to Make Money Online
   Jobs for Stay at Home Moms
   Maintain Client Relationships
   Maximize Productivity at Home
   Prepare Business for Success
   Public Relations for Startups
   Self-Motivation is Key to Success
   Solid Home Business Pillars
   Starting a Home Business
   Starting Home Based Business
   Stay Active Working From Home
   Stay Organized and Productive
   Why Working From Home Is Bad
   Work From Home for Beginners
Small Business
   Best Canadian Cities for Startups
   Build Loyalty Through Customer Care
   Cities Cradles of Entrepreneurship
   Database Activity Monitoring
   The Game of Modern Business
   Help Your Business Evolve
   How to Impress Clients in Office
   How to Protect Your Money
   Life Sciences Business Reagents
   NY Best for Small to Midsize Business
   Opening a Business in Cincinnati
   Product Lifecycle Management
   Project Management Tools
   Project Plan Blunders To Avoid
   Raise Small Business Capital
   Ramp Up Your Business Model
   Reduce Business Travel Expenses
   Small Business Debt Collection
   Small Business Employment Law
   Small Business Human Resources
   Successful Project Management
   Time to Upsize Your Business
   Treat Employees Like Family
   West Coast Cities for Small Business
   Why You Should Invest in Website
Business Ideas
   Arts and Crafts Business
   Build and Sell Real Estate
   Home Based Plumbing Business
   Home Based Travel Agency
   Jewelry Home Business
   Mobile Car Wash Business
   Profitable Small Business in Texas
   Start Home Furnishing Business
   Start Profitable Side Business in NY
Freelancing Work
   Best Freelance Jobs in Las Vegas
   Freelance Trends in New York City
   Grow Your Freelance Business
   Home Office Can Make or Break Business
   Top Places for Freelancers in Florida
   Working from Lebanon Freelance
Art of Marketing
   Event Marketing Technology
   Free Internet Advertising
   Importance of Online Reviews
   Improve Your Business Online
   Marketing Trends to Watch Out For
   Online Marketing Growth
   Perfecting the Art of Imperfection
   Summer Business Promotional Items
   Tips to Help You Sell More Cars
   Using SEO to Make Money
   Whole Foods Pinterest Recognition
Negotiating Skills
   Avoid Missteps in Negotiating
   Better Negotiation Guidelines
   Dressing Tips for Negotiation
   Grinding on You in Negotiations
   Prepare for Important Meeting
   Using Humor in Negotiating
Selling Tips
   Craft an Effective Sale Pitch
   Stop Hard Selling and Listen
Office Furniture
   Office Furniture to Impress Your Clients
   Office Furniture for Starting Business
   Office Meeting Room Essentials
Office Space
   Create Feng Shui in Office Space
   How to Make Good Business Premises
   How to Redesign Your Home Office
   Keep Staff Motivated During Relocation
   Make Your Office More Productive
   Modernize Your Office on Budget
   Moving Business to a New Office
   Office Security Tips on a Budget
   Signs to Relocate Your Business
   Tips to Make Office Space Safe
   College Degree and Career
   How to Attain Bachelor Degree
   Job and Employment Search
   Places to Start Nursing Career
Credit Cards
   Avoiding Credit Card Debt
   Bankruptcy and Credit Cards
   Cash Back Credit Card
   Chase Bank Credit Card
   Credit Card Debt Relief
   Credit Cards and Travel
   Choosing UK Credit Cards
   Handling Credit Cards Tips
Personal Finances
   How to Create Financial Freedom
   Improving Your Career Options
   Money Tips for Travellers
   Outsmart Your Peers and Save
   Personal Budgeting Tips
   Personal Finance Insights
   Personal Success Tips
   Save for a House Deposit
   Save Money in the Shower
   Split Finances Living Together
   Stress-Free Budgeting Tips
   Student Loan Debt Tips
Forex Trading
   Affordable Trading Options
   Beginner Forex Traders
   Best Days for Forex Market
   Binary Options Strategies
   Donchian Channel Indicator
   Forex Trading Is Not Gambling
   Forex Market Explained
   Forex Tips for Newbies
   Forex Trading as Business 1
   Forex Trading as Business 2
   Forex Trading for Beginners
   The Elliott Wave Principle
   Fundamental Analysis Software
   Head and Shoulders Pattern
   How to Use Forex Calendar
   India Based Trading Benefits
   Main Approaches to Forex
   Moving Averages Trading
   Picking a Forex Robot Option
   Safe Forex Trading Strategy
   Scalping vs Position Trading
   Trade GBP USD Currency Pair
   Trading Outside Comfort Zone
   Understanding Correlations
   Zero Bound Interest Rate
   USD World Reserve Currency
   Banks Financial Trickery Debt Income
   Japan Lost Decade Replay in US
   Is Solar Energy on Its Way Back
   Alan Greenspan Role in Housing Bubble
   April Job Losses
   Bank of America
   Bank Stress Test
   Bank Stress Tests
   Bank Test Results
   Canada's Oil Sector
   China Lifeline
   Ciena Corp Stock
   Credit Card Issuers
   Credit Default Swaps
   Economic Recovery
   Elliott Wave Disciple
   Flawed Stress Tests
   India's Slow Growth
   Investing Strategies
   Investment Accords
   Oil Prices Jump
   Russia and China
   Small Cap Stocks
   Yuan Carry Trade
Business Seminars
   Antigua Conference
   Mime Workshop
   Panama Seminar
   How to Publish a Book
   Recommended Books
   Credit Repair Companies
   Disabled Entrepreneurs
   Traveling With Credit Cards
Guest Posts

Home Business
Small Business
Business Ideas
Freelancing Work
Art of Marketing
Negotiating Skills
Selling Tips
Office Furniture
Office Space
Credit Cards
Personal Finances
Forex Trading
Business Seminars
Guest Posts
Link to us
Privacy Policy