My Trading Business Plan

jagankris

Well-Known Member
#1
Trading business plan is the blue print of ones beliefs about markets,trading,goals, and plan to achieve the goals.
Challenges and change one need to under go for greater success in Trading.

Trading is Mind,Method and Money Management.
To achieve greater success in the risky trading business one need to coach oneself towards change.
Change in thoughts,feelings and behavior.

To change oneself one need to clearly write down his beliefs,ideas and plan.

Below is a sample Trading business plan questioner which will help to improve oneself in trading career.

I request the masters of Trading in TJ to add more to the same.

Note:- Trading Plan is the strategy/system one is planning to follow and is more about the system/strategy and beliefs/psychological challenges,entry,exit plan,trade management,money management.Let us move on to the trading plan once Trading Business plan template is complete.
 
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jagankris

Well-Known Member
#2
It will be easy for a mentor as well as oneself if each one honestly write down their beliefs and honestly work on their beliefs and weakness before starting trading
and risking their hard earned money.

I am jotting down some sample belief related questions and checklists for Trading Business Plan.

My Vision as Trader ?

- I think Trading is
- I think Money is
- I can be a great trader because
- I think Risk in Trading
- My simple understanding of Risk
- Capital required for Trading as a Living
- My Preferred Style of trading
- Immediate areas where I require attention
- Long term study objectives
- My belief about Fundamental Analysis
- What is the societies general view about stock markets/Trading

- Why I want to do this Trading business?
- What are the similarities of Gambling and Trading ?
- How Trading is more risky than Gambling in a Casino (Say Just one play Roulette) - Unlimited risks etc ?
- What do I believe about the capital markets ?
- Who provides continuously buy/sell orders in the capital markets ?
- What do I believe about day Trading ?
- What do I believe about swing trading (positional trading) ?
- What is my understanding of brokerage/transaction costs/slippages in Day Trading ?
- What are my short term trading business goals ?
- What are my long term trading business goals ?
- I want to position myself as day trader/swing trader because ?
- As a trader what are the events I should be looking for ? (Budget,Company Results,RBI etc etc)
- Are you fully aware of the edge my competitors have over you ?
- Who are the participants in capital markets (My competitors).
- Markets are designed for the success of ????
- What are the risks of Capital Markets Trading ?
- What are the health hazards of trading and what I need to over come them ?
[Below Sample trading beliefs from Suri
To make money in trading takes lot of time and effort. Trading is simple but hard to implement.
If you are looking for some advice/tips/gurus/software/holy grail systems, you are nearing risk of ruin.
Trading is nothing but survival for longer periods.
Your odds are stacked against market which is supreme.
Markets are setup in such a way that majority will loose the game.
You are going to be wrong more than 50% of the times in your trading decisions.
If you fail to safeguard your capital by minimizing your losses, you are not likely to survive in the markets for longer periods and in the process you will miss the opportunities to make a killing.
]
- With so many risks why do I think I can win and make money trading ?
- Do I have sufficient TA knowledge ?
- What is my final understanding of TA and beliefs about TA ? (As traders we trade our beliefs about our TA).
- What are the draw back/Disadvantages of DOW THEORY ?
- What do I think about trading losses in Trading ?
- What are my strengths ?
- What a trader should have ? (Clear Mind,Charting sw(system),UPS,Good Internet connection,CAPITAL etc etc) all that is
important for trading ?
- My Weakness ?
- Do I have good mentors ?
- What advice I got from My mentors ?
- What will be the monthly cost for trading - Internet/brokerages etc.
- Do I have the best broker according to my style of trading and requirements - cost wise ?
- What is the other source of income to sustain my family/living expenses ?
- How many months I can survive with out depending the income from trading ?
- When will I stop trading and review my trading ?
(After losing what %of risk capital).
- When will I quit trading ? (decide if Trading is suitable for me or not - after losing x% of my trading capital and time in effort).
- What kind of emotional support I have in my family and their views/beliefs about trading ?
- What are my beliefs about brokerage calls/trading advisory calls/CNBC/NDTV news channels ?
- What are my beliefs/understanding of leverage in day trading ?
-
- What is Risk/Money Management
- Do I have a trading system/Trading plan ?
- What is my understanding of Money Management ?
- What is my understanding of trade management ?
- What is my understanding of Risk:Reward Ratio ?
- What is my understanding of position sizing ?
- What is my understanding of Futures and Options ?
- What is my understanding of Open Interest /Volume ?
 
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