Wednesday, April 11, 2007

Why Trade?


It's a simple question really, but I think it bears some pontification. Why do we trade, what do we hope to accomplish and how do we hope to benefit? Many of you might be silently thinking (or even thinking out loud); we trade to make money (duh). This is certainly one answer, and a valid one at that. However, I think that there are plenty of other ways to make money as well. So why does a person choose this method of making money? Or is that the only reason we trade?

For my own personal journey into the world of trading, I started off wanting to find a business model that was successful and either start or purchase my own business. The primary motivation at the time was to pursue a career that couldn’t be taken away from me by downsizing, rightsizing or any other crazy corporate nonsense. Although I hadn’t personally been through this, I had watched several friends and family struggle to rebuild their career after the rug had been pulled out from under them. Additionally, I feel that the least intelligent people tend to rise to upper management and that I didn’t want to be ruled by idiots. Lastly, I wanted the personal freedom to set my own work hours and vacations. One of the most criminal things is seeing low-paid employees having to beg to get more than 3 days of vacation at a time.

The goal of finding a financially and emotionally rewarding business led me through a series of different interests until I finally discovered the Forex market through a friend of mine. The markets interested me with several key business benefits not found in most other businesses: 1) interesting work, 2) flexible hours, 3) work anywhere, 4) no employees (gotta love that), 5) no customers (even better), and 6) low initial capital investment. Although some of the other factors were important, for example flexible hours, the best and most compelling aspect was that I found this work to be interesting and not tedious. And if you think about it – that is the ideal business.

Two years later and many markets, timeframes, indicators and strategies later, I still feel the same way about #1. I haven't yet quit my day job - but I feel that day is coming soon. I enjoy getting up each morning and trading the markets – it’s the best thing I will do all day (whether I’m profitable or not that morning). As long as that remains true, I will continue to trade. How about you, what is your reason to trade?

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6 comments:

Gav said...

"the least intelligent people tend to rise to upper management"

You have just told the truth of corporate world.

Lord Tedders said...

Yeah, sometimes it's almost funny. But most of the time it's just sad. I'm surprised some social scientist hasn't done a study on it :)

LifePost said...

I started trading because I knew that I was smart enough to find an edge and that I could make money from the markets if I gave it my best shot, plus I really like spending my free time learning about the markets.

Lord Tedders said...

lifepost,

"i really like spending my free time learning about the markets" - this is definately a huge plus for any trader. If you don't love this business you can really end up hating it.

Tedders

Jules said...

Just read your post, LT, and would like to share my reasons for wanting to trade for a living, other than those that you've already mentioned:

1) I'm a control freak (I only like to control my own life, not others'), and I don't like to be controlled. Working for an organization and having to sit through meetings listening to BS pains me to the point I get a migraine every other day.

2)Sitting at my computer all day long analyzing charts and news is the most enjoyable thing I've ever done, next to punching the face of the boxing instructor 20 times a minute on Wii.

3) I like the adrenaline rush I get from winning (and the healthy perspiring and heart racing when losing). It's a much safer way of injecting some excitement in my life

4) Trading is something I can do for as long as my mind is sound. And the thinking that is required daily is a sure way of keeping Alzheimer's at bay

5) I don't actually have to see a doctor just to get a medical certificate when I get a cold or flu and just need to SLEEP to get well, and I don't have to inform anyone that I'm sick (if you run a business, you actually do have to tell everyone why you're not around to run the show)

6) Trading allows me to live a totally secluded life. These days, the only people I see (besides D) are the guys who deliver my lunch and dinner.

7) I like to earn my keeps. I like to be rewarded according to the amount of effort I've put in and the risk I've taken to get good results, not the number of hours I am seen hanging around in the office and the number of influential people I manage to please.

8) I like the temperature in my own home, but I can't run a home-based business coz I don't like selling anything or any service. Not even over the internet.

That's it for now :-)

Lord Tedders said...

Jules,

Those are great reasons and I agree with a lot of them. Number 7 is my total favorite. I agree 100%.

LT