How to treat trading as a business

Discussion in 'Educational Resources' started by elitetradesman, Apr 16, 2011.

  1. 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?

  2. jokepie


    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...
  3. NoDoji


  4. trader46


    get out when the edge is gone
  5. 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: