The first time I speak to a friend about stock trading being a business, they stares at me like I am a cultist...
I have been brainwashed by Wall street, and the next thing that come out of my mouth will be as insane as the flat-earther...
If you have read my articles before, you might have read about my position about stocks and why it is essentially a business.
When you think of a typical business, you automatically think about inventories, employees, leasing cost and advertisement to get your name out there...
As a 2 times, failed business owner, I know something about a business... and it is that, business sucks...
I would, never be a business owner again! simply because it is stupid.
Tried and failed 2 times as a business owner, I understand that the odds are against you.
9 in 10 business fails within 3 years after it opens.(according to statistics)
In another words, only 10% of the business owners can make money... and the problem is for how long?
Statistics say, small businesses in America have 8.5 years life span...
What all of these means is that... you can work your ass off and become the 10% successful business owner, but the odds say, your business is highly unlikely to last longer than 9-10 years.
So why would people still go into business?
Most of them go into business to chase after financial freedom, the freedom from idiotic bosses, the sick and tiring 9 to 5... and the imaginary success they might have.
In fact, opening a business is the fastest way to burn your hard earned savings, and go into a huge debt.
While business sucks so much, why would I say stock trading is a good business?
What if I tell you, that I have a business that does not require inventory, hiring and managing people, does not need to put in any effort in advertising or doing any work at all?
Most importantly, my business is a very famous brand, and I am making huge profits every year.
All you need to do is... to put some money into my business, and I'll pay you back any of the earnings and dividend in proportion to the amount you put in...
You would probably tell me to take my scam and go f*** myself...
Or you would say... what is the catch?
Simply, there is no catch... this is exactly what the stock market is...
In the stock market, businesses allow you to invest in their company at anytime you please.
Most of the businesses in the stock markets are fair, and are highly regulated by the government.
They treat their shareholders fairly, and make sure they earn their fair share of dividend and profit sharing.
Each shareholder is treated as the part owner of the company.
Sure, everyone knows that... but nobody! nobody makes money in the stock market except the brokers.
In a market that rises 10% or more on average each year, 90% of the people don't make a penny in the stock market.
I wonder why...?
The quick answer is... The wrong person bought the wrong stock at the wrong time and sell it at the wrong time as well...
Wrong person means the person who bought the stock is not equip with the right knowledge and mindset.
Wrong stock means the stock is not selected for the correct purpose
Wrong time means strictly price level.
What should I do to do "all" these things correctly?
Nothing difficult!
Just treat it like a business!
When you open a business, you looking to sell something cheap at a premium price... correct?
It is exactly the same in equity trading.
First you pick a company that is solid, and usually have solid profit every year. This is the same as picking an inventory that'll last a long time!
Secondly, buy that company at a discount!(when its price is low)... this is like buying inventories at wholesale price...
Lastly, sell that company when the price is high!... this is like selling the product to make a profit.
Is this difficult? not at all!
Why then? nobody succeeded?
Because people's mind is complicated... knowing and doing is two different thing...
Just like you know you're overweight, and you know thousands of ways to lose fat... you are still fat...
Until you know why you're fat, you'll remain poor as well...
I'm not saying this to insult you, but to inspire you to think and change!
Good luck!