With only a couple of days remaining before this month's Meetup we will keep this week’s lesson brief.
Now most of us have heard about the importance of a trading plan, and in this month’s Meetup trader Jeff Murphy will talk about how a trading plan can improve your trading as well as the key elements necessary to craft a successful trading plan.
Now let ask you a question, how many of you have heard about or have fleshed out a trading business plan?
Simply put, how are you accounting for the revenues and expenses of your trading business?
You see this is but one simple aspect that many traders neglect.
That is they fail to run their trading operation as a business.
If you were to look at investing any traditional brick and mortar business they would be quick to provide a bevy of financial documents.
Most traders, on the other hand, are remiss to even have something as simple as a business plan.
Some of this is due to the fact that trading is a somewhat unique business - the revenue of a trading business comes from trading and not selling products or services, and trading has far fewer expense items (no suppliers, marketing expenses, etc) than a traditional business.
However as the adage goes, treat your trading like a business otherwise it will become a hobby.
So at the end of the day what are your financial goals and how will you accomplish them?
You need a plan (it doesn’t have to be complex) to guide the direction of the business and to keep it on course.
To that end, I want to share the following resource which will help you develop a trading business plan.
This simple spreadsheet will help you begin to forecast and account for your trading revenue as well as your trading expense to ensure you can meet your financial objectives.
Watch the video, and try out the spreadsheet and let me know if this works for your trading business.
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