Turn Your Trading into a Business

Listening to the financial news while driving one day, I heard the commentator say, “What about the Little Guy?” Hey, that’s me! My wife says, “That’s a great name for your new business.” Always the entrepreneur, Little Guy Trading, LLC (AKA Pajama Trades) was born. Carving my own profitable path in this shark tank has led to my website pajamatrades.com. 

One of the best advantages about trading in your own business and not personally as 99% of traders currently do (while paying the highest taxes possible), is tax loss insurance. Yes, insurance against major losses! In Chapter 3 of my book The Business of Trading, I detail the pathway to this low cost insurance that protects your downside. This advantage alone can be worth tens of thousands over the coming years. Sleeping well is one of my goals.

This downside protection is especially important for new traders coming into the profession. Many new traders take a beating right out of the gate as the pros eat their lunch, taking their money week after week. The major broker/dealers report millions of trader accounts have been opened again this year. Ben Carlson, CFA, recently posted a list of studies showing 70 – 97% of traders losing money within a year. It seems repeated beatings can be the norm. It’s time to stop the bleeding. Why anyone would trade without tax loss insurance is beyond me. Perhaps they are not aware of its existence. I’m attempting to change that!

One of the best benefits of trading is the ability to create a flexible lifestyle not seen in many professions. Are you tired of driving to work daily and feeling stuck, dealing with co-workers and staff, all the while fighting new COVID restrictions? Instead, how about trading when and where you want, more or less for whatever your individual goals require. I have a personal list of over 100 reasons why I trade for a living. I created the list while gradually transferring out of the daily grind of traditional work life. Maximizing your trading income by setting up a trading business and gaining trader status when filing your taxes can be the smartest financial move you make this year.