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TRADING #101 COURSE – PART THREE: SETTING UP YOUR BUSINESS – WWW.TRADERSCOACH.COM
plan. Whether you develop this plan independently or bring in an adviser to assist you,
the goal is to map out on paper where you’ve been, where you are now, and where you
are going.
In Chapter 17 of this course we provide you with a thorough outline so that you can get
your plan on paper. In the meantime, paint in the broad strokes of your plan. We can
fill in the details later.
To start thinking about your business plan, identify the following data to get a sense of
what your current profile is:
(1) Net worth: ___________________.
(2) Age: _____________________.
(3) Tolerance for risk (circle one): High Medium Low
(4) Your trading account size
If you do not have the information readily available to fill in your net worth or you are
uncertain about your risk tolerance, that is okay. We will work on these areas in greater
detail later in this chapter.
The reason for introducing these three items now is to have you begin to see the value
of knowing where you are now, so that you can more effectively get to where you want
to be later.
After thinking about your current profile, you will then begin to look at a variety of areas
that will affect your personal business plan. Some of the areas to consider for now are:
• Current annual gross revenue.
• Average annual gross revenue over past three years.
• Projected future gross revenue.
• Current gross overhead—personal and/or business expenses.
• Projected future gross overhead—personal and/or business expenses.
• Investment portfolio dollar amount.
• Annual yield on investments.
• Active trading account dollar amount.
• Annual yield on active trading account.
• Areas to cut expenses.
• Areas to increase revenue.
Again, if you do not have the information readily available to address these areas, that
is fine. We will be working on this material and you will be able to finalize this
information when you prepare your business plan.
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