Does one need a Businessplan (and a Tradingplan) and what would that Businessplan look like ? (V Tharp makes this distinction) Paulus
I would say you need both imo. You need the business plan to have a plan to build your overall business and career, and you need a trading plan that specifies your EXACT trading rules on a per system basis. It will be a single or combination of trading methods (and written plans) that will be the core of your business plan objectives.
Comprehensive business plans have about 10 to 12 sections. See the standard texts on the matter. Convention rules for business plans. Usually two of the sections relate to "trading plans". The past plan, then the contemporary and future trading plan are broken out separately to demonstrate how the breakpoints of the business are justified or realized. You have past breakpoints and planned breakpoints than depend upon performance and measuring and meeting those objectives. Thus, trading plan information has a lot to do with performance and how performance increases in effectiveness and efficiency over time. Performance improves in many ways. By having these each detailed out, you also define how you measure their advent and the tangible nature of improvements. I handle about 8 facets in this area. It is best to allow for many rows of coefficients, etc., above the main body of the spread sheet part. Here you can quantify how each aspect (how and when) the measurables are planned and then actualized. A lot of footnoting to do here regarding connecting the trading plan to the business aspects.
thanks Jack, for a somwhat complicated answer ... has anyone got an example (wesite, personal, ..) of a businessplan to get a more concrete idea of what it is or is supposed to be ? regs, paulus
One of Van Tharp's books (as coauthor) has what you seek. http://www.elitetrader.com/vb/showthread.php?s=&postid=1257634#post1257634 There are other helpful ideas and links in that thread.
FYI... Basic Starter kit/outline. www.stocktrading.com/TradingPlan2005.htm After this is completed the "harder" work of products and methods and goal setting takes place. Don
thanks late appex, I only have Tharp's trade your way to financial freedom and Safe strategies for Financial Freedom (Tharp's 1 and 3 book) I'll try to find a copy of his second book, the one you mentioned. thnx again, Paulus
very valuable information ! thank you very much haven't been here for a while .. nice to see YOU are still there. regs, paulus
can you elaborate on that statement ? i am afraid it is not a language problem, that i do not understand