One of the fundamental questions: Should I Open a Trading Office or Become an Independent Trader?
As professional traders, We often receive tens of questions from people interested in the business. One of the questions We receive often is on whether one should opt to become an independent trader or just open a trading floor. While there are merits and demerits of the two approaches, We believe that opening a trading floor has its advantage compared to trading independently.
Let's have a look toghether.
You Become a Manager
As a trading floor owner, you become a manager. A manager with responsibilities and a team of people working below you. As you grow professionally, the benefits you derive from the management skills you learn will be very valuable.
For example, you will learn how to solve conflicts, how to socialize with people, and how to run a company. It is difficult to learn these skills when you are an independent trader in your home office.
Trade as a Team
When you are running a trading floor, you and your teammates will open their own trades. This means that the entire floor will be relatively diversified. This diversification is important in limiting the amount of losses that you can make.
This is unlike what happens when you are an independent trader. If you're on your own and you're doing it wrong, no one can give you advice. And you can't mitigate losses in any way.
We all have different opinions about financial assets. In a given day, you might believe that the price of crude oil will rise. You will use different data and reasons to justify it. However, when you are a team, your members can have different opinions.
They might say that the price of crude will decline and back it up with their own reasons. As you deliberate about this, you could reach a consensus on where you expect the price of oil to go. Therefore, having a team will help improve your thought process about the different assets.
When you are running a trading floor with Day Trade The World (DTTW™), you have higher chances of making more money than when you are doing it independently.
This is because the company provides you with the liquidity and the proprietary tools you need to trade. In addition, you don’t need to risk your original funds when opening a DTTW trading floor. Your profits will be shared with the company.
Therefore, you will make more money when running a trading floor than when you are an independent trader.
As you recruit your team members, you can recruit people with experiences in various assets. For example, some of the members can be pros in equities while others can be good at stocks.
Other team members can be professionals in currencies, while other traders can be specialists in the specific assets. By having this specialization, your team members will become experts in their respective fields. This will help your team in the decision making.
» Related: The Perfect Hire For Your Trading Team
As an independent trader, you can only trade when you are awake. This means that you will lose opportunities that occur at night or when you are asleep. By having a trading floor, you can have the team trade in shifts.
Some of the members will trade during the day and others will trade during the night because markets are usually open 24 hours a day, five days a week.
You can find usefull our Strategies to Save Costs When Starting a Trading Floor.
Summary: Why a trading office is better
It's true, we are a bit biased in this choice, and it's undeniable that someone trading alone gets extraordinary results. But, often, these are exceptions, and as such hardly within everyone's reach.
While being able to count on a team, besides helping you in the actual trading activity, also helps you to grow as a person and as a trader. Not to mention the countless benefits that sharing information can have on your overall performance.
» Related: Team Trading vs Solo Trading