How to make a business Plan

If you want to get profitable platform, Make design a business plan for your trading and investing
business. This is an essential step. Every great company has a business plan. You are no different. Your business plan should be very specific. Following are seven issues and topics to address:

1. Capital, equity drawdown, and margin:

Plan out how you will fund this new trading business. Be sure to allow for all living expenses necessary to maintain your current lifestyle while trading. Itemize both personal expenses and business operating expenses in great detail to determine your estimated monthly overhead. Determine what dollar amount you will start off with in your active trading account. Also, will you use margin, and, if so, how will you limit your risk. Establish how much equity drawdown(Trading losses)will be acceptable before you stop trading and reevaluate your approach to the market.


2.Business and office setup:

Outline exactly what you want your business to look like. List everything you will need, from computers to chairs. Then calculate what the cost of all these items will be and allocate a portion of your start-up capital for that purpose.

Where will you conduct business? Is this going to be a home-based venture, or will you be operating from an outside office? What will your office space cost, and will you be operating on a full-time or part-time basis? Plus, have you decided what markets you will trade and what brokerage house you will use to execute your trades? Determine in advance what the commission cost of your trades will be.

And, most importantly, select a proven trading system that you feel comfortable with and truly believe in. This trading system should suit your psychological approach and your personality.

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3.Legal and Financial concerns:


If you are going to be a full-time trader, will you incorporate or be a limited partnership or sole proprietor? Will you open a separate bank account for this purpose? If you are managing your own investments, to which accounts will you be giving your attention? With regard to taxes, be familiar with any tax laws design your business plan.


   Do not disturb!

This can be a somewhat delicate topic—keeping well meaning co-workers, fam- ily members, and phone solicitors “out of your hair.” Trading and financial in- vesting success cannot be attained without your undivided attention and con- centration. Here’s your plan of action:

  1. Find a room in your house or office with a door that you can close and make that your “work ”

  2. Communicate to your family and/or co-workers that you are under no circumstances to be interrupted while you are working (or studying). This communication should be clear and firm.

  3. Hang a “Do Not Disturb” door sign from now on while trading and

  4. Do not answer the phone while working on your trading and investing. Use an answering machine or answering service. Get caller ID so you can screen out unnecessary calls.

That relate to your trading and investing. Who will prepare your tax re- turns, and can they counsel you on how to structure your business? Be prepared for an Internal Revenue tax audit, since random audits are always a possibility.



Plan to learn your selected trading systems entries and exits by paper trading until you know the system inside and out. Decide how long to paper trade before going live.

Once you’ve started trading real dollars with your system, be true to this system and follow it to the letter. During periods of equity draw- down, do not be quick to abandon your chosen system. It’s like a marriage. Use great caution before switching from one system to another. If the system is genuinely suited to you, stick with it.

Next, how will you develop the skills to become consistently profitable? Can you obtain training and education to speed you along on the path of profitability by developing the proper trading skills you will need for your selected trading system?

Then, find a mentor to whom you can look for support, guidance, and direction. This should be someone that you respect and admire and that you feel has in the past and will in the future continue to teach you what is important about trading and/or life.

Finally, you may need periodic coaching to help you stay on track with your trading system and business plan. Try to set up some coaching support in advance for those times when you feel that you are not achieving the goals set out in your business plan.You may contact with us by using contact form for coaching and trade consultation.

5.Goals and expectations.

Ask yourself: “What do I hope to accomplish by setting up this new business?”

Financial freedom? An independent and entrepreneurial work environment? Maybe it’s as simple as being able to do what you love to do. Or do you just want to be in the driver’s seat when it comes to your investments, instead of relying on a broker. The important thing is for you to look inside yourself and to find out what your answer to this question is. It will be revealing and will help you determine if you are pursuing this road for the right reasons.

Other important questions to ask are:

“Where do I want my trading and investing to be in six months, one year, and five years from now?”

“How much net revenue do I expect to generate on a monthly and yearly basis?”

“Do I anticipate continuing with this business indefinitely if it is everything I am hoping it will be or is this a short-term stepping stone to something else?”

“If this is a short-term stepping stone, what is the next step after a successful trading and investing business?”

“If I am trading on a part-time basis, do I plan to leave my current employment and, if so, when?”

By clarifying your goals on paper you are more likely to make them into a successful reality. You can also see in black and white if your goals and expectations are realistic and can plan more effectively to overcome any obstacles that might present themselves when you start to sketch in the details.

6.Record keeping and measuring progress:

Essential to your success is thorough and accurate record keeping. Be sure to record each trade’s activity on a trade posting card to determine profitability. It is important to have your trades on paper to prevent confusion should your computer system go down. A handwritten card system also enables you to quickly jot down any feelings or thoughts that occur during the trading day. This will help you to work on your trading psychology.

Then maintain a running trade ledger of all trades to evaluate your profitability on a weekly, monthly, and annual basis. Look for any strengths or weaknesses that appear to correspond to the time of day, week, or year or the type of trade being executed. Where are you most profitable, and where are you least profitable?

Essential Statistics to track

  1. Average winning trade

  2. Average losing trade

  3. Win ratio and payoff ratio

  4. Ratio of commission cost to profit earned

  5. Margin liabilities

  6. Percent of profit and loss

It is beneficial to have your system in place before you begin to make live trades. Trading is a fast-paced business, and your record keeping can easily get away from you if it is not considered a priority.

7.Your new trading and investing job:

Consider yourself an employee of this new company and map out what your new job will be like. Spec- ify how many days a week you will work, how many hours per day, whether you will take a vacation, how you will manage sick days, and what kind of performance reviews there will be and when they will take place. How will you create accountability? Last but not least, are there retirement benefits and health care benefits in place?

Don’t neglect doing a business plan. If you don’t do one or feel it is not necessary, think again. It is vital. Another added benefit to this exercise is that you are instilling within yourself the discipline needed to succeed, much like the discipline and preparation needed before making a trade! It is all connected.