Why are people trading instead of investing into their own, proper business?
It doesn't make sense to me, the return on creating your own business is much, much higher.
By investing you are essentially paying someone to work for you and taking a small cut of the profits (if there are any) at the end. The distinct advantage to this compared to building your own business from the ground up is that because someone else is doing all the work you can keep your regular job/income. This way if the investment goes bad you have had and still have a steady source of income.
For a few reasons
(Almost) everyone can invest, investing itself doesn't take any special resources, opportunities, lots of time, or proper / powerful work ethic.
Starting a business however, requires an entirely different view on money, the economy, working, risk-taking, and the list goes on.
It also takes a lot of time and an effective work ethic.
A lot of people don't have any of these things, so starting a business doesn't even seem like an option.
>the return on creating your own business is much, much higher
I am autistic, businesses mean social interaction and problem solving, the first time I'd come across any kind of impasse and I'd sperg out.
Trading means pouring over SEC filings, announcements, conference calls, searching for information, methodically keeping up with the news and checking prices. I can do all this on my computer and in my noggin, all I have to do is figure out the best call, all things considered.
>It doesn't make sense to me, the return on creating your own business is much, much higher.
Because 90% of startups fail within months whereas the stock market has made positive returns for decades.
The odds of your new biz doing well are much lower than the returns of buying and holding a stock index fund.
>Because 90% of startups fail within months whereas the stock market has made positive returns for decades.
Startups are different than small businesses. Small businesses have a much, much lower failure rate.
Not everyone has the capital to start their own company.
Not everyone can risk quitting their job to dedicate all their time into something that might fail.
Not everyone has an innovative idea that is worth doing any of the above for.
>Small businesses have a much, much lower failure rate.
So you're talking about about buying a business that's already established? Where do you get the money? Who's gonna run it? Do you know about the industry? What's your business plan? There's a million and one headaches with buying a small business.
My business is a proprietary trading firm. I've invested years and tens of thousands of dollars.
Now, I pull a comfortable living off the market even in really shitty conditions (like recently).
>consumer spending is going down like your mother every prom night
>thinking now is the time to build up a business
>getting insulted by a bald retard on 4chan
You disgust me.
Interest rates are only low for people who do not need the money. Try to get a loan for your business with no money and no assets, and you'll get a huge margin if they won't laugh you out the bank.
Most people are dumb and start really dumb businesses.
Just because a hipster barber that is charging way to much because he uses vintage blades fails doesn't mean that it'll lower my chances of creating a good business.
I think Andrew Carnegie put it best, "There ain't any money in prospecting."