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Learning to Trade vs Starting a Small Business

THINKING OF STARTINGA BUSINESS? TRADING VS SMALL BUSINESS WHY SO MANY PEOPLE ARE TAKING UP TRADING FULLY ONLINE There are SOME business that can be run completely online, or mostly online. Day Trading is 100% online and can be done absolutely anywhere with just a computer/laptop, internet connection, and a trading platform. LESS ADMINISTRATION, LESS PAPERWORK BUSINESS ADMIN AND PAPERWORK Trading as a business Running a traditional business involves takes almost no paperwork or admin other than opening a trading account and tracking progress in a journal. LOADS of paperwork and administration, from accounting to employee files, inventory, insurance... The list goes on and on and on. COMPARING STARTUP COSTS The startup costs for Day Trading Futures is considerably lower than the startup capital needed to open a small business STARTUP COSTS FOR DAY TRADING 24 Education costs $ Trading platform costs 2$ Laptop or computer S Internet setup costs if applicable STARTUP COSTS FOR A SMALL BUSINESS OFFICE SPACE While some small businesses can be run from home, most small businesses require a brick and mortar location or office. You will need upfront bond if you are intending on renting a storefront. ACQUIRING EMPLOYEES Not only do you require money set aside to pay your employees as your revenue is building, but you need to cover the costs of acquiring employees through advertisments for positions available. EQUIPMENT Most small businesses will require equipment in order to provide a good or service. Tradies need tools, restaurants need food prep equipment, cafe's need coffee machines. Computers and software may also be required. INVENTORY / MATERIALS If your small business builds something and sells the end product, you will need to have the upfront costs of materials. This could range from making household items, to building houses, to making food, or just selling an inventory of items. COMPARING RUNNING COSTS TRADING AS A BUSINESS - RUNNING COSTS FUNDS TO TRADE A Day Trader will need to have funds in a trading account that can be used to place trades in order to seek a profit. TRANSACTION FEES Each trade that is placed has transaction fees involved, while small these are still a running cost involved in Day Trading as a business. ELECTRICITY AND INTERNET A Day Trader will need to have electricity to run their trading computer as well as a reliable internet connection in order to access the markets. TRADING INDICATORS /TRADING ROOMS Indicators and Live Trading Rooms are useful tools that a trader may choose to use, however they are optional additional costs. TRADITIONAL BUSINESS - RUNNING COSTS ŚMALL BUSINESS RENTAL COSTS Small businesses need a store front, while some businesses can be run from home, most require an office or shop which need to be rented out. UTILITIES Running a business out of a designated location will bering costs such as electrical, water, council rates, business-grade internet. STAFF WAGES AND SUPER For most businesses the biggest expense is staff. Staff need to be paid a living wage as well as superannuation. Even a small number of employees is a large expense. EQUIPMENT MAINTANENCE Equipment breaks, sometimes at the most innoportune times. Repairing or even replacing equipment is a normal part of business. NVOICE SOFTWARE Most businesses run on at least SOME software. Software could include operating systems, office suites (word outlook, etc), accounting software, CRM, sales software, marketing software etc. INVENTORY Any business that has some form of stock/inventory will have a 'carrying cost'. This is the cost of buying materials that need to be kept in stock at all times, meaning this is a consistant expense. MARKETING AND SEO Marketing and Search Engine Optimisation (SEO) are often needed in order to drum up new business and stay ahead of your competitors. These are 2 very expensive services to undergo. COMPARING RISK RISKS OF TRADING AS A BUSINESS LOSS OF TRADING FUNDS When Trading you run the risk of losing some or all of your inversted funds. Risk management is an important part of trading to reduce these losses and seek to make a profit. RISKS OF STARTING A BUSINESS LOW DEMAND FOR PRODUCT RECESSIONS PANDEMICS DAMAGE TO STORE/LOCATION LOSS OR DAMAGE TO INVENTORY HEALTH WEATHER (OUTDOOR BUSINESSES) STOCK SHORT STAFFING ISSUES BUSINESS LIABILITIES COMPARING BENEFITS VS DAY TRADING SMALL BUSINESS VERY FLEXIBLE PARTLY FLEXIBLE V Be your own boss Be your own boss v Flexible hours Control how your business is run v Fewer hours Set your own hours (to a degree) V No staff v Recession proof v Pandemic proof HOW DO YOU THINK v No customers THE TWO COMPARE? V No complaints v No sales or marketing V No set location V No commute time v No meetings INTERNATIONAL DAY TRADING ACADEMY Image resources via: © Copyright 2021 | International Day Trading Academy | All Rights Reserved This information is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly, you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice. Past performance is not a reliable indicator of future performance. The International Day Trading Academy (ACN 165 005 550) is a Corporate Authorized Representative (CAR Number 001250922) of FUTURES tadive Trading Education. For further information Beyond Capital Asset for the our FSG. General Advice: Any advice, opinion or n or trading view provided by in nature and does not take into account any of your objectives, financial situation &/or needs unless specifically agreed to by a completed statement of advice (SOA). Should you act on this information you should consider the consider the may his informa the associate products such as derivatives appropriateness of the information relation to your personal Warning: Trading in leveraged or Seek I and a carries high level of risk to your capital and you should only trade with money you can afford to lose. You should consider your investment objectives, risk tolerance & trading experience when deciding to invest with The International Day Trading Academy Pty Ltd. Prior to International Day Trading Academy Pty Ltd. recommends you seek independent advice. It is possible to lose more than your initial investment capital when dealing in markets that offer clients the ability to utilize leverage or gearing. Trading derivatives may not be suitable for all investors. Clients must ensure, prior to investing, they fully understand the risks involved and sought independent advice in relation to these risks if they do not fully understand them. There are risks involved with trading equities, derivatives and options. For further information, please refer to our FSG. slder investing, The LEGO %24 (5

Learning to Trade vs Starting a Small Business

shared by IDTATrading on Jul 28
There are SOME business that can be run completely online, or mostly online. Day Trading is 100% online and can be done absolutely anywhere with just a computer/laptop, internet connection, and a trad...


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