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How does being an individual trader, working with your own money, fit into the fastlane framework? I'll take a stab at it and would like to see what yall think.
Control:
If it's just you, making the decisions on tactics and strategy, and executing the trades you have control.
Entry:
It's VERY easy to start trading. Anyone with a few bucks to spare can do it. From this standpoint it's a poor choice for a business.
BUT, that's assuming you're starting with just a few bucks. At the other end of the spectrum, let's say you're starting with $10 million. In that case it would be very easy to earn a living off the proceeds, as you would only need a very conservative return on your investment. Getting that $10 million to start with is a large barrier to entry, so it meets the commandment in this scenario.
Need:
It's somewhat difficult to understand the Need that trading fills, and it's hotly debated if it fulfills a real need of society at all. I'm going to sidestep this debate for now and go with the premise that if people are willing to pay for it then it must be meeting some Need. Successful traders are definitely rewarded for what they do, so there is evidence of Need.
Where does the value skew come from? 2 places: the capital put in, and the specific trade. As a trader you're betting against all the other traders who are taking the opposite side of the trade. Are you better at trading than the average trader/investor?
This is an argument for retail investors to not get into trading: they're betting against professionals who have made it their career to make good trades. The stats are pretty bleak: most traders don't make it. Many fail spectacularly and ruin their lives in the process, even to the point of committing suicide.
Time:
This one is much like Entry, where the business occupies the full range.
Day trading is incredibly time-demanding. You'd better be ready to click that button at the right time or you'll lose big!
Long-term trading, aka "investing," requires very little time to manage.
You get some choice in your Time commitment.
Scale:
Trading hits a home run here for sure. It naturally Scales with your earning, providing exponential growth.
It does top out once you become extremely successful. It gets harder and harder to beat the market once you get so big that you are much of the market. The scaling gets harder, but by the time someone gets to that point they've already "made it."
Conclusion:
In my view, yes, trading meets the requirements of a fastlane business.
Control:
If it's just you, making the decisions on tactics and strategy, and executing the trades you have control.
Entry:
It's VERY easy to start trading. Anyone with a few bucks to spare can do it. From this standpoint it's a poor choice for a business.
BUT, that's assuming you're starting with just a few bucks. At the other end of the spectrum, let's say you're starting with $10 million. In that case it would be very easy to earn a living off the proceeds, as you would only need a very conservative return on your investment. Getting that $10 million to start with is a large barrier to entry, so it meets the commandment in this scenario.
Need:
It's somewhat difficult to understand the Need that trading fills, and it's hotly debated if it fulfills a real need of society at all. I'm going to sidestep this debate for now and go with the premise that if people are willing to pay for it then it must be meeting some Need. Successful traders are definitely rewarded for what they do, so there is evidence of Need.
Where does the value skew come from? 2 places: the capital put in, and the specific trade. As a trader you're betting against all the other traders who are taking the opposite side of the trade. Are you better at trading than the average trader/investor?
This is an argument for retail investors to not get into trading: they're betting against professionals who have made it their career to make good trades. The stats are pretty bleak: most traders don't make it. Many fail spectacularly and ruin their lives in the process, even to the point of committing suicide.
Time:
This one is much like Entry, where the business occupies the full range.
Day trading is incredibly time-demanding. You'd better be ready to click that button at the right time or you'll lose big!
Long-term trading, aka "investing," requires very little time to manage.
You get some choice in your Time commitment.
Scale:
Trading hits a home run here for sure. It naturally Scales with your earning, providing exponential growth.
It does top out once you become extremely successful. It gets harder and harder to beat the market once you get so big that you are much of the market. The scaling gets harder, but by the time someone gets to that point they've already "made it."
Conclusion:
In my view, yes, trading meets the requirements of a fastlane business.
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