How to treat trading as a business

E

elitetradesman

Most successful retail traders would tell you that you should treat trading as a business if you want to trade full time,

I agree in principle, but having no experience of running a business, I don't know how to actually do this.

Are there any books or online resources that teach you how to manage trading as a business, like forecasting and managing a cash reserve?

Thanks!
 
Business rules

1. trade only what works - let the winners run.
2. DO not trade what is not working - Cut your losers.
3. Return on capital should make sense - If you make less than what you did from a regular job, do not do it.
4. Re-Invest and keep increasing your capital, while maintaining same risk ratios per trade.

may be others can add...
 
some traders working from home will go so far as dressing in a suit and wearing a
tie 'to work', while also maintaining a strict code of business behaviour; in front of the
computer by ? - 8am, 30 min lunch at noon, stop trading at 4:30pm; review trades
update accounts, analysis for tomorrow's trading, switch the computer off

you could start with completing a Business Plan - google to find one, there's loads
likewise there's lot of 'starting a business' info via the net as well as your local gov
Small Business office and the library

this one is more about the trading side but may serve as an introduction:
http://www.elitetrader.com/tr/index.cfm?s=17
 
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