An article posted this morning on Forbes.com talks about mistakes made by entrepreneurs, while reading the article I couldn’t help but notice the similarity between traders and entrepreneurs. There is a direct link between entrepreneurship and trading. In my opinion most traders have an entrepreneurial flair in them, really trading is a business and it takes lots of commitment to become any good at.
In a video I watched with Jack Schwager the author of several trading books including the New Market Wizards. He commented saying that trading could be compared to brain surgery in terms of how difficult it can be to become good at it. He went on to say that most people will read one book on trading and then start risking their money in the live market. They then wonder why they get burned early on, often they give up at the very start of the career.
Getting burnt is something would-be entrepreneurs also have to deal with, they jump in head first and try to make a go of an idea. It’s really just about becoming a success in life, doing what you want and making good money while doing it. That is why people trade and that is why people start up companies. We learn and we grow and if we are capable we use that information to better our situation. We do this again and again and hopefully in the end everything works out they way we imagined it.
Here are some of my favorite quotes, if you would like to read the full article it can be found here: 8 Major Mistakes Entrepreneurs Will Make In 2013.
Thinking You’re Good Enough As Is
If you’re not meaningfully improving your entrepreneurial skills, you’re going backwards. Great entrepreneurs thrive in down markets, and the next few years will challenge the best of us. This is where the herd is thinned, and better stronger business are built to last. You may not currently be among the best, but you can get there with some self-awareness and dedication.
This directly relates to trading, I have been heavily involved in the trading arena for nearly 5 years on a daily basis and I am still learning buckets of new information every day. One of the things that draws me to this industry is the amount of intelligent people that are part of it and the insane amount of information you have to decipher to make any sense of it. It took me several years to get to a stage where I could hold a decent conversation about the markets. Even now I am learning and growing every single day.
Being a Technology Ostrich
There are so many incredible products available to entrepreneurs online, you can’t afford to keep your head in the sand. From accounting software, to recruiting tools, and CRM, invoicing, website creators, physical credit card processors, online surveys, project management, product sourcing, product feedback, easy made design, ready-made workforces, even business documents and courses.
Things are changing every day in our industry, platforms that offer tighter spreads and faster execution, mobile apps, social online charting such as Trading View are game changers for our industry. Being able to trade via your mobile and laptop has allowed traders to trade from the most remote locations in the world. The backbone for all of these changes are technology, you have to be up to date with the changes that are happening, sign up to our RSS or newsletter to keep up to date with the things we discover.
Making Excuses Based on the Fiscal Cliff, Debt Ceiling, Tax Policy, Obamacare, or Anything Else from the Government
You don’t like the policy coming out of the government, get over it. Nobody does. Stop complaining that the rules are changing. The reason so many of us became entrepreneurs is because we have disdain for other peoples’ rules. If you’re caught up in complaining about obstacles put in your way, you’ll always miss the opportunities you can create.
We all self-sabotage, it is part of the human condition. I feel very lucky that I am involved in this industry at quite a young age but 99% of the people I talk to will throw excuses at me in some form of defence as to why their situation is not as they want it to be. We all have to take control of our financial situation and that means learning, growing and taking responsibility for our actions. That way we no longer look to blame things that are happening outside of ourselves. Traders make money because of the things that are occurring while others use it as an excuse. Do not use the news as an excuse to avoid the markets use the news as an excuse to become actively engaged with the market.
Believing Your Idea is Any Good at All
There are no good business ideas, just good execution. No idea builds a business, people do, through a lot of trial and error, blood sweat and tears, and a healthy dose of integrity, smarts, and luck.
Self confidence in your trading ideas is the only thing that will allow you to continue forward. Sometimes you will find yourself in a situation where all the odds are stacked against you, often if you keep your bottle and hold your original idea you will come out on top. Letting yourself be swayed by other traders opinions and letting doubt into your mind will often sabotage your trading. Having the confidence to say I have a trading idea which I see as an opportunity and I am going to stick to it.
Wrapping it up
I really believe it is possible to change your financial situation, or any situation in your life, you just have to dedicate the time to it. Firstly you need to decide on a goal, then you plan and eventually you conquer. That’s what we have been doing for millions of years and that is what traders and entrepreneurs do in life. If your not happy with you are current financial situation then you need to take control of it. Thank you for reading and feel free to comment below.