As we enter the fourth quarter of the year, the markets continue to take a beating. While it’s obvious the average investor has lost a ton of money, I can’t help but think some traders may also find themselves in a worse position.
A bear market usually finds newer traders constantly trading into bull runs — runs that quickly fall apart. We know that the vast majority of traders consistently lose money. We also know that the top 20% of traders are taking in 80% of the profits, just like any other profession.
Even the best traders have off years. They know they are playing a probability game, and while they will win eventually, there is a possibility of some bumps along the way.
If you find yourself in the unenviable position of a yearly decline, it’s time to revisit the point of running your trading as a business. There are so many reasons to trade in business and very few reasons why you would not want to do just that.
Did you know you can only take a $3,000 loss in investments against any of your other annual income? In a trading business, if you have a loss you can reduce your gross income without limit! If you are still learning this great profession, it is absolutely critical to start trading within a business structure today.
The solution for traders perfecting their trading expertise is to do so within a business structure.
Stephen Herto
As you transition to a trading business, you will likely need a guide. That’s why I wrote the book on exactly how to do it. Save yourself the time and hassle of learning how to do it yourself, and discover the insider’s step-by-step plan to quickly start your own trading business from someone who has already paved the road to freedom.
Look, the IRS now has specific rules for those who can be considered traders. Most people that get into trouble with the tax folks do so by trying to recoup trading losses through misinformation on their tax returns. Simply forming a business will save you tremendously in the long run. The IRS is looking for certain red flags on tax returns, and there’s a reason for their own hiring spree over the past year.
The solution for traders perfecting their trading expertise is to do so within a business structure. The advantages far outweigh the possible downside of trading as a retail maximum cost trader, as 99% of traders do today.
Each day you continue to trade outside a business structure is costing you and your family money. Money that you could use to provide a wonderfully comfortable lifestyle. I’m certain that would be a good thing for you.
Enuf said.