Question by William M: What’s a better idea: start an online business or trade stocks & shares for a living?
Was just wondering what the best option for me is out of these two – I have been trading stocks and shares for 2 years, it’s been getting dull to me recently – I think I’m more interested in online business models than short term trading for a living – it gets me more excited. Which would you recommend, and which in your opinion would have a higher success rate? Thanks for all advice!
Answer by Ryan Ong
70 % of start-ups fail within the first year. This is mostly due to under-capitalization.
Likewise, investing in stocks when you have under $ 5000 to begin with usually results in a loss.
That said, make sure you have enough capital to cover you for a year. Then start your business, and then use some of your profits to invest in stocks. Do both.
Stock investments often result in a very volatile cash flow, whereas businesses are more stable. Oh, and there’s the niggling little detail that pure stock investors invent nothing and are a total waste of space.
Know better? Leave your own answer in the comments!