Trading as a Business

I have traded off and on for nearly 10 years as merely a hobby(very small positions) in stocks and commodities- oddly more profitably in commodities & futures than stocksconfused: ). I never ramped up for a number of various reasons including access to a sufficient starting capital base. Anyhow, after this long a period of training I feel reasonably confident( ) to try to gradually scale up my operations.

Numerous sources recommend creating a business plan(since it is going to trading as a BUSINESS) will contribute to success.

My question is where might one find an example or a template of a TRADERS business plan. I can find examples of plans for restaurants, consultants, retail but they always focus on sales, marketing, suppliers, customers, blah, blah. . . . .(thankfully trading doesn't need any of this )

I do NOT need a trading system or methodology- that I have(although always being refined, bit by bit). What would be helpful though would be a sound plan to wrap around the trading strategy.

 

Best of luck, I have read articles in the magazine Active Trader concerning this perhaps you can find some references on there website. You can find the magazine at any large bookstore, Barnes and Noble for example,,

 

Hope this will give you a jumping off point.

http://www.futuresmag.com/library/taab/start.html

 

Nicely Done! This is definitely a good article to start with.

 

How can I ever thank-you enough!!!!

That is simply outstanding and exactly what I needed to get started(on my business plan not on trading)

Have a nice day trading.

 

Joe Ross has written a book on this subject and offers the following outline for the procedural part of running a trading business:

1. Planning
2. Organizing
3. Delegating
4. Directing
5. Controlling
6. Trade Management
7. Risk Management
8. Money Management
9. Business Management

 

In trying to develop a trading plan, take a look at Van Tharp's book called "Financial Freedom through EDT". Chapters 2 and 3 might give you some ideas. In the book you actually go through the exercise of creating a business plan for professional trading.

I found it very heplful. It's a guide, it can help you find the path...

 

contact your CPA, they can help you set up all the paperwork to form an LLC, that way you can deduct all expenses related to your new business. also, you cna check out the web for your local state gov. to find the actual regulations in your state to do it on your own. its much cheaper that way.

Pete

 

While searching for more info on the subject of planning a trading business, I found quite a interesting site. Look at http://www.tradershelpingtraders.com/keepers.htm, specifically at Part-3 of Asher's Letter to Samech.

Some good ideas to learn from, IMHO.

Andreas