Entrepreneurship has really flourished over the last couple of years. We see more and more businesses being started every day, both online and off, as the vision of being your own boss and the one calling all the shots ends up being too good to pass up in this digital age we found ourselves in. With so many different niche markets and dedicated audiences, finding a way into the chain of supply and demand and beating the competition is the epitome of the entrepreneurial dream of becoming a successful owner of a lucrative business.
But why invest everything you have in a single company when you can easily own stock of multiple companies and trade them from the comfort of your own living room? This is the train of thought followed by many, who consider online trading a viable alternative to running your own business or relying on the more traditional, brick and mortar firms to facilitate buying and selling. One thing that both entrepreneurship and online trading offer is the fact that you are the one making all the decisions whether creative, financial or legal. Both options have their strengths and their weaknesses, some of which we will be discussing below.
One of the unique benefits online trading offers real-time insight into the state of your stocks, as the majority of trades can be performed almost immediately. Business transactions and traditional brokers often require setting up appointments in person, over the phone or online just to kick off a single trade. Other advantages to online trading are the low transaction fees that are normally much higher when dealing with traditional brokerage firms and the lack of brokerage bias which often benefit brokers more than they do actual traders.
Fortunately, investors are met with a high range of options when it comes to trading. While some try to generate a quick profit by trading short-term, others prefer the long run and rely on complex trading strategies in order to generate larger profits down the line. One of the easiest ways to start trading online is to get yourself involved in forex trading. Instead of buying and selling traditional stocks, you’re merely trading pairs of currencies in order to profit from the differences in the exchange rate. Forex market is by far the largest liquid market in the world, followed only by the credit market, making it an ideal place for those looking for new ways to increase their revenue.
Starting your own business
The only thing business owner have against stock trading is the lack of control. Granted, you can research the companies you’re investing in, go through cash flows and balance sheets and your performance will still be dictated by factors that are, ultimately, not in your control. Instead of dealing with volatility and randomness, entrepreneurs prefer being the ones in charge and, as far as they are concerned, work with more leverage and less risk involved. Even the best can be affected by changes in the market conditions, but there are always pivoting options that are specifically made to deal with those types of situations.
Furthermore, traders often have to start with large amounts of money to make large amounts of money. A business, on the other hand, can easily be started as a website worth couple of hundreds of dollars and gradually be scaled up to account for an increase in demand. The potential for return is far greater while the risk of losing a lot of money upfront is very low and getting this type of leverage in trading without investing on the margin or having different options for trading is next to impossible.
Entrepreneurship and online trading both have their benefits and downfalls and which one you choose mostly depends on the type of work-related freedom you want to have. If you prefer calling all the shots and accounting for every little detail in order to grow your own brand, then being a business owner is your best option. If you wish to sit back, relax and work from the comfort of your own home, happily clicking through the majority of your business and financial decisions, then online trading may be your cup of tea.