Trading Futures/Forex Is Just Like Owning A Restaurant
Trading Futures/Forex is just like owning a restaurant? Sounds strange right? How can that be? What is the similarity? Trading Futures/Forex is just like owning a restaurant because for both of them, it is just running a business.
Ever open a restaurant? When you first open the restaurant, everything seems so confusing. You have to get the decor done, tables and chairs bought, menu figured out, employees hired and trained, etc. For the next few months, the confusion continues. The number of customers coming in every day changes, what they want to eat is not figured out so the menu is constantly in a state of flux. There is a lot of food waste because of this.
After a few months, the restaurant begins to take shape. The menu stabilizes, the customer count becomes regular, and the food waste become manageable. The restaurant initially breaks even and then suddenly turns a profit. At that point, it is just running a business. You make the same food every day, you keep the same hours, you have pretty much the same customers, the prices are set. The amount of money you can expect to make every day is determined.
Trading futures is the same. When you first start to trade, things are very confusing. How do you execute trades, how do you look at a technical analysis chart? Why are so many trades unsuccessful? When will the losses stop? Can I really become a full time trader? Can I give up my day job?
After the steep learning curve, things start to settle out. Your ability to understand the technical charts improves. The mistakes you were making when you first began to trade no longer seem to be there. You figure out the trading platform and how to send your trades to the brokerage. You determine the strategies that work best with your simulator.
At first your winnings a minimal. But in time, as your confidence with trading grows, your profits rise. Suddenly, you have your own business. You trade at the same time every day. You use the same number of contracts. You use the same strategies. You go for the same profit. Once you make the profit, you close the trading platform. Your winnings are set. Your trading restaurant is running.
Running a trading restaurant as a business means that your daily activities are uneventful. It's like taking a plane ride. You get off the airplane and your friends or family greet you. They ask you...how was your flight. The best thing you can say is "it was uneventful." Your trading business should be the same. Every day should be bread and butter days, completely uneventful. The more uneventful the trading day, the happier you'll be, the more consistency you'll have, and the more profit you'll realize at year-end.
Here's the best part about establishing your trading restaurant...you get to establish your business on the simulator without costing you even 1 penny. With a true restuarant, the start up costs are enormous, what with decor, menu changes, wasted food, labor, advertising, etc. With trading, the start up costs are minimal...open an account for $500 and get a simulator and start learning to trade. Stay on the simulator until you have your restaurant running. The true restaurant may cost you tens of thousands of dollars. The trading restaurant, a few hundred.
Learning to trade futures is not cost prohibitive as so many other business ventures are. It doesn't require a special college education and it doesn't require huge investments. Most importantly, it doesn't even take that long. While a true restaurant may take months to get running, a trading restaurant takes 4-6 weeks.
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