Most successful retail traders would tell you that you should treat trading as a business if you want to trade full time, I agree in principle, but having no experience of running a business, I don't know how to actually do this. Are there any books or online resources that teach you how to manage trading as a business, like forecasting and managing a cash reserve? Thanks!
Business rules 1. trade only what works - let the winners run. 2. DO not trade what is not working - Cut your losers. 3. Return on capital should make sense - If you make less than what you did from a regular job, do not do it. 4. Re-Invest and keep increasing your capital, while maintaining same risk ratios per trade. may be others can add...
Josh Lukeman's opening chapters on position size and money management in his book "The Market Maker's Edge" provide excellent guidelines for preparing to trade for a living. I highly recommend this book. I posted on another thread important things to incorporate into your business plan: http://www.elitetrader.com/vb/showthread.php?s=&threadid=214286&perpage=10&pagenumber=1
some traders working from home will go so far as dressing in a suit and wearing a tie 'to work', while also maintaining a strict code of business behaviour; in front of the computer by ? - 8am, 30 min lunch at noon, stop trading at 4:30pm; review trades update accounts, analysis for tomorrow's trading, switch the computer off you could start with completing a Business Plan - google to find one, there's loads likewise there's lot of 'starting a business' info via the net as well as your local gov Small Business office and the library this one is more about the trading side but may serve as an introduction: http://www.elitetrader.com/tr/index.cfm?s=17