Part 5. Start your Trading Business Plan
In order to succeed as a professional trader, it is often said that the aspirant must treat trading "like a business". As with many of the clichéd phrases that litter the metaphorical trading floor, the importance of this statement is often overlooked, or the meaning misunderstood.
The following template written by Tim Wilcox aims to address these problems by examining some of the ways in which a trader might go about achieving this vital goal.
It is divided into two sections: a general overview of what constitutes a trading plan and why it is prudent to have one, followed by a detailed analysis of the various aspects that should be considered during its creation, for example, the importance of self-awareness, discipline and risk management.
If you are a complete beginner, you may not be able to complete your Trading Plan fully right at day one, but as you go through it you will better understand the process of learning that you have ahead of you, and will also more clearly see the area’s that you already understand but also, more importantly, the aspects that you do not yet understand.
Knowing what you dont actually know will help you to ensure you fill in the blanks as you learn. As you go through the process of adaption and evolution as you grow in your trading abilities over the next three months, your trading plan will fill out and quite likely change several times. Keep careful notes, and every new copy that you make should be clipped into your trading Journal so that you can track your progress and the process of change.
Before you start your first week of training, you should have studied and completed the trading plan as fully as you can.
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