No matter what your business does, it can always benefit from a different perspective gleaned from another industry – as the truth of the matter is that companies of all kinds have plenty to learn from one another.
So, in today’s post, the foreign exchange training experts over at Learn To Trade are offering up some valuable lessons straight from the organised chaos of the trading room floor – exploring how new startups can learn a thing or two from the crazy day-to-day adventures of the trading industry.
Risk awareness is key
A fundamental skill of any successful trader is an innate risk awareness that allows them to calculate decisions in a logistical and pragmatic way. The ability to do this is a transferable skill that will aid the success of any business venture.
On the trading room floor, risk awareness comes in two separate forms – internal and external risk awareness. The latter requires an informed understanding of the context of a decision, whether it’s industry-specific or, where appropriate, part of a wider influence.
For example, a trader looking to invest in pound sterling would be aware of the risks associated with a likely drop in value due to geopolitical tensions over Brexit. In much the same way, a startup business simply must be aware of any wider contextual factors that can directly influence their industry.
An innate risk awareness involves being aware of your strengths and weaknesses, recognising when you’re operating outside of your comfort zone or area of expertise and acting accordingly. On the other side of the coin, you can exploit and leverage your strengths in business. The key is to be cautious of diving head-first into situations where you feel out of your depth, as this can have a significant knock-on effect on your overall profits and subsequent success.
Value your employees
We’ve all seen The Wolf of Wall Street, and in spite of the obvious lessons to be learned from the indulgent lifestyle contained therein, the film and its real-life subject nonetheless provide a glimpse into a culture of celebration that’s heavily encouraged within the trading industry – and for good reason.
Celebrating the successes of employees is a productivity-boosting team building activity that will help to motivate every member of your team to achieve success for the company as a whole. Highlight achievements and performance, no matter how big or small your team is, to ensure your employees feel valued and motivated – encouraging a celebratory culture as a non-financial incentive for success.
A large part of what makes a successful trader is the ability to be reactive. Traders must make snap decisions based on projections and events that can occur and alter in an instant, making the ability to react in a logical and calculated way under pressure an imperative.
Mastering this difficult skill separates the wheat from the chaff in the world of business, and should be an ultimate goal for any small business startup. No matter what industry you’re in, the harsh reality is that, for small businesses especially, there are going to be good days and bad days. Knowing how to deal with those bad days by remaining cool, calm and collected in difficult, high-pressure situations will help to grow your confidence as a business owner and, in turn, the long-term success of your enterprise.
Small businesses can learn a lot from the trading floor. Transferring these versatile skills to your day-to-day business practices will help you to grow as a business owner and ensure your business continues to grow positively year after year.
This post was submitted by John James. John is a content writer for Learn To Trade, the foreign exchange education and learning specialists – offering a range of training courses to help people understand the currency trading market, as well as its opportunities and risks.