Treat Your Trading Like a Business w/ John471
Something that bothers me when I hear someone newer talk about their trading is when they describe it as “just messing around” or something to that effect. I think this often comes from insecurity, trading is confusing and difficult, and when someone admits they’re new and tries to learn, they’re often met with half-truths and marketing fluff.
They’re led to believe there’s some secret out there. That once uncovered, all the difficulty melts away. The ES ticker turns into an ATM.
No.
In my 20s, I traded fixed income in a prop office. In my late 30s, I transitioned to trading index futures from home. In between those
periods, I owned a few restaurants and got to know a lot of others who did too, some seasoned, some green.
What strikes me about this comparison is how differently people approach these two business endeavors. People who open restaurants are far more likely to write business plans, curate menus, source ingredients, and spend hours interviewing for key positions. I’ve never once heard someone call it “messing around.”
That’s not to say they’re more successful, but it seems the potential for public failure in something like a restaurant pushes people to cover more bases upfront.
So let’s consider this: what if you approached your trading business the way someone might plan a restaurant? What would matter?
You’d think about your location—where foot traffic is, where the opportunity lies. In trading, that’s the market you choose: ES, NQ, CL, ZB, etc.
You’d need a menu—a selection of what’s being served. That’s your market’s behavior, trading hours, and tradable conditions.
You’d probably develop some signature dishes—setups you know well, the ones that bring people back. In trading, these are your best entries and structured playbook trades.
You’d need management—someone who sets rules, monitors the kitchen, and pulls the plug when needed. That’s your risk framework, your planning, your rules.
You’d keep records—inventory, cost, sales. That’s your journal.
And the staff? You’d need a Chef (your analyst), a General Manager (your risk manager), and someone working the front lines (The Trader). In trading, all three of those jobs are held by the same person: you.
“If you want your trading to produce income, it’s no different than any other small business. It should be treated with the same respect and structure. “
– John471
Maybe your trading business doesn’t line up exactly with this analogy. Maybe there’s another business model you know better that fits you more naturally. That’s fine. The point remains:
If you want your trading to produce income, it’s no different than any other small business. It should be treated with the same respect and structure.
If you consider yourself to be “messing around,” then your results will be random. And random success is a dangerous teacher; it can temporarily reinforce the illusion that something good is happening while your account slowly, then rapidly, vanishes.
Success isn’t guaranteed even on a well-organized path. But if you’re diligent, progress is. And it’s only in committing to that progress, in walking the walk as the owner of a real trading business, that you’ll ever find out if this can become a sustainable career.
John471
CT Head Trader