Why Trading Is The Best Business


In my experience, there are only three ways to become a multimillionaire. Number one, trading stocks and options. Number two, investing in real estate. Number three, running a successful business. Personally, I am doing all three and trading stocks and options is my personal favorite. Now, in this video, I will reveal why trading is the best business in the world. So let’s get started. Before I explain why trading is the best business let’s talk about the difference between trading and investing. So trading versus investing. You see, when I ask people if they have been trading before, they often say, “Yes, I bought Apple two years ago and it’s doing well now.” That is not trading. That is investing. So here are the main differences between trading and investing. You see, investing is a long term approach. You’re often holding a stock for years. Trading is a short term approach. You only hold a position usually 5 to 20 days. When investing you’re buying a stock based on a “hot tip” or a “gut feeling.” When trading, you’re buying a stock based on indicators. That is a scientific approach. Now, when investing, you make decisions based on emotions, often “hope.” When trading, you make decisions based on probabilities. When investing usually people don’t have an exit strategy, they’re often exiting when it “feels right” and it never does, right? When trading, you know your exit before you even enter a trade. Now when investing, typically you only make money when the market goes up. When trading you make money when the market goes up or down. When investing you’re concerned with the overall economy. And when you’re trading, you don’t care about the overall economy, you don’t care about who is president, you don’t care about what’s happening in China or Europe because you trade what you see, not what you think. So, the question is, is trading better than investing? Heck yeah! And here is why. When investing and you have a long term approach, you have to be concerned about what’s happening in the world. Who is the president? What’s going on with China? What’s going on in Europe? What about the overall economy? And so on. You see, when trading short term positions, all these things don’t matter. When investing, you’re typically buying and holding, and you hope that the market is going up. Now, if the market is crashing, your positions will suffer. See, when trading, you can benefit from a rising and a falling market. In fact, often you will make more money in a falling market because a market falls twice as fast as it goes up. When investing you have very little control. You’re in it for the long run and you shouldn’t make any adjustments to your positions. Now, when trading, you’re actively managing your positions, and you can adjust them daily if needed. Therefore, trading gives you more control. Now, these are only a few reasons why trading is better than investing. Learn how to trade and you will run circles around long term investors. Next, we will talk about trading versus investing in real estate. But do me a quick favor, if this is making sense thus far and you’re enjoying this video, click on “Like” and leave a comment that says, “Yes, this is making sense.” Okay, so let’s talk about trading versus real estate. No doubt investing in real estate can be very lucrative, and it can help you to become a multi-millionaire. I personally own 10 million dollars in real estate, yet I prefer trading over real estate and here’s why. When investing in real estate, you have to find the right property. You have to negotiate the best deal. You do need to do all your due diligence. Deal with inspections, take care of financing, prepare contracts. You see when buying a single-family home, this can take weeks. And when buying apartment complexes, this can take months. And when you’re selling your property, it can take weeks and months too. See when trading you push a button to buy and you push a button to sell. And the transaction is completed in a matter of seconds. Also when investing in real estate, it can take months and sometimes even years before you make a profit. And while you’re invested in real estate, you’re at the mercy of the markets. If there is an economic downturn, you might not be able to find renters. And if the real estate market crashes, you might not be able to sell your property with a profit. When trading, you only hold a position for 5 to 20 days. And therefore, you’re not subject to recessions or economic downturns. You have much more control. And when investing in real estate you need to bring at least 20% of downpayment to the table. So when you try to buy a $200,000 home, you need to have at least $40,000. And when you try to buy an apartment complex for $4 million, you need at least $800,000. See, on the other hand, when trading you can get started with as little as $5,000. I personally started with trading first and then I started investing in real estate. And also when investing in real estate, you have to deal with tenants, with code enforcement, unfair tax appraisals, fair housing laws and so on. You have to find tenants, you need to make sure that they are paying rent and not trashing your property. And you have to make sure that the AC and water heater is working, that the toilet is not clogged. You need to evict the tenants when they don’t pay the rent. You have to renovate the house after they move out… Geez! Sounds exhausting, isn’t it? Now, when trading it’s just you and your computer. When you feel like buying, you press a button. You never have to talk to anybody, nobody is calling you in the middle of the night informing you that a drunk tenant drove through the fence, true story, but that’s a story for another day. Anyhow, trust me, trading is much less stressful. Long story short, if you don’t have millions of dollars yet and a team that can take care of your properties, then start with trading to build enough capital before you invest in real estate. Is this making sense? If it does, click on “Like.” Do it right now so that I know that you are here. Next, let’s talk about trading versus business. Running a business is difficult. After all, you have to deal with employees, vendors, accounts receivables, marketing, sales. What else is there? Bookkeeping, tax laws and the IRS. You have to deal with social media, customer reviews and the list goes on. On the other hand, when trading you need to master only three things. Number one, find the right stock to trade. Number two, knowing when to enter. And number three, knowing when to exit, either with a profit or a loss. That’s it. Master these three things and you will succeed as a trader. By the way, if you would like to know how exactly I do these three things, then hop over to a website that’s set up for you. It’s called MyTradingRoutine.com. And on this website, there’s a video in which I show you exactly how to find the right stocks, when to enter and when to exit. I’ll link to it in the description. Go there right after you finish the video it’ll definitely help you in your trading. But back to trading versus business. You see, when you start a business you need to have at least $50,000 or $100,000 in startup costs. And we’ve already talked about it when trading you can start with as little as $5,000, and that’s only a fraction of the money you need for starting a business. Now, finally, when trading, you will know whether you’re right or wrong in a matter of days. When running a business it usually takes years before you’re making a profit. As you can see, here’s why trading is the best business. First of all, it’s simple. All you need is to master three things and you can succeed. Investing in real estate or running a business is much more complex. Second reason you can get started with as little as $5,000. And investing in real estate or starting a business, you need $50,000 or $100,000, maybe even more. When trading you can get started with as little as $5,000. Reason number three, you are in control. When running a business you need to rely on your employees, the economy, your vendors and many other factors. And when investing in real estate, you need to rely on your property management company, your contractors, your tenants, your lawyer. You get the idea. When trading it’s just you and your computer. You are in control. Only you are responsible for your own success. Does this help? if it does, make sure that you like this video and subscribe to my channel. And oh, go to mytradingroutine.com right now to see exactly how to find the right stocks, when to enter and when to exit. Go there right now! It’ll definitely help you in your trading. Talk soon.

24 Replies to “Why Trading Is The Best Business”

  1. Trading takes more time than investing but the payoff is amplified. Plus you have more control as you say. A 10 year old can be trained to be a trader. It teaches anyone to be completely involved in what your doing.

  2. Nice video Markus! Of course trading entails a bit more than what you tell in this video… But in general I think you are right and of course I wonder if you should run your own business and if you should manage your real estate yourself. In general you should look at systematizing, automating, outsourcing and scaling in all of them. Of course my opinion weighs a lot less than yours as you are doing all three of them way more successful than I am doing at the moment.

  3. Excellent Points He's making… I (2007&8) Owned 3.4 Million dollars in Real Estate… lost it all by 2009 Evictions and Declining Value from Recession.. .. and Lost all my Money and Hard Hundreds of Hours Working.. All Gone.. in a matter of months… .. also, Have Owned My Own Business for Over 50+ Years… and My Employees are Killing Me.. because they Don't Listen or Follow Directions… Trading is the ONLY WAY TO LIVE LONGER AND HAVE LESS STRESS… ( Only after You have a Mastered System, and Control of Your Own Emotions)… so Yes.. i 110% Agree with Markus… he's right on.. with this Video…

  4. I have invested in Real Estate a lot over the years. The ROI is not as high as most would think. Expences always hit you from behind. Even though I have always set a set 10% of the gross as a flush fund for the unexpected. That 10% gets eaten up every year and more. Trading for me has little to no overhead cost and what little cost may be incurred, can be very easily managed. I see the profits in Trading to be 50 times more than what I see in my Real Estate investments. Real Estate is a buy and hold, for the long term and even then. You need to look into the capital gains and whatnot that will need to be paid. You will need a really good tax CAP or Attorney without question.

  5. as always very enlightening video sad part is i found you late well as old saying in my country planting a tree were good were 20 years ago next be right now it means if you didnt previously its your chance right now

    just one question how you manage to all these 3! each are time consuming!
    wondering how you do them all!

  6. Hello Markus!
    I enjoy watching your videos but I have a question.
    Don’t you think that telling a successful trading strategy publicly will make it worse? Because we cannot all trade the same strategy and all make profits. I myself once had made a fantastic strategy (day trading), it worked for a few months and then it suddenly stopped working. I thought it must have been because more and more people also discovered a similar strategy, the more people the worse the strategy. It just seemed weird and I’m still not sure if that was the real cause. Do you maybe have an idea for the reason or did you experience something similar?
    Anyway have a nice day!

  7. Gteat vid again Markus, but besides trading, I would go for REITs instead of real estate, much more liquid, get the yield and get rid of the hassle.
    Merry xmas

  8. im a student from India …im doing paper trading from some days and i found your videos very useful markus there are other channels too but they confused me rather than boosting my knowledge but your simple explanation helped me a lot especially with trailing stop loss ….thanks buddy u r my new Trading Guru ❤️

  9. @Markus Heitkoetter Tremendous material! Greetings from an ex-IBMer (22 yrs). I have much to review this month with your videos as a new subscriber. I do have a question or two as it relates to this video (@ 2:00) where you state "Know your exit before you enter". I have also watched your Trading Routine and Stop Loss & Profit Target videos. In the Stop Loss & Profit Target video (@ 4:00), you share a 1(Risk):2(Profit) as the Golden Rule. In the Trading Routine video (@ 34:34), CROX showed a Risk/Reward of 1:10 rather than the 1:2. It was not clear to me on how the Profit Target was established for 10 reward, and why it deviated from 2 reward. Was there a different criteria (exception) being used on CROX? Did the system set a Profit Target based on ADR/ATR with a multiple? Is this something you could provide further insight into? Thank you Sir!

  10. Markus , Can you trade without any money ? So many options you got here to trade, but if you have a lots of money what you do ? That is my pick today .

  11. Markus , do you have strategy in your indicators to identify large trades vs small ? And how to take profits from this trade ?

  12. Hi Markus, wanted to get your opinion on something. I have roughly 150k to invest. Is it better to invest in maybe 3 or 4 stocks for 37,000 per trade vs. buying 30 stocks at 5,000 per pop? Thanks!

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