A trading plan, just like a normal business plan, is a document that details everything
that you need to know in order to run your trading business..
It includes your goals and objectives, how you intend to make money, what your edge is, what you
will trade and why, and how you will grow your trading business.
It should also include details about the technical and fundamental analysis you will use, money
management, psychological ideals and how you will prepare, execute and then evaluate the trades
you place
In order to begin thinking of trading as a business, you need to consider every detail about
what can impact your success and what will affect your overall profitability.
You have costs that you need to cover, and in the case of full time trading, there needs to be
enough left over for your living expenses. There are also tax implications, computer costs,
possible fees for price data and use of trading platforms. Even your electricity bills need to
be considered, because they all have an impact on your overall profit.
