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® “Home-Study Course” Study Manual Page 258
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Your Trading Business Plan
Objective: Get Profitable. You need to write a business plan for your
trading business. This is an essential step because your trading needs to
be thought of as a business. Every great company has a business plan.
You are no different. It is a must!
Your trading business plan should be very specific. Here is a list of
issues and topics to address in your trading business plan:
1. Capital, Equity Draw-Down & 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 draw-down (trading losses) will
be acceptable before you stop trading and re-evaluate your approach to
the market.
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