How to Build a Trading Business

Asad Dossani
You've been trading for a while. And perhaps you've had some success. Now you're ready to take your trading to the next level. Ready to approach trading in a more serious way. Ready to build a trading business.

A business starts with some capital invested. Then a business makes revenues, incurs costs, and hopefully turns a profit. As a trader, you'll start with some capital in your account. Your revenue is what you earn from all your trades put together. Your costs include subscriptions to research services and market data, etc. Typically small stuff.

Now let's suppose that you're running this trading business on the side, in addition to working full time. I highly recommend keeping your day job for as long as you can.

The first thing you need is a profitable trading strategy. One that fits into your lifestyle. For example, if you work full time, an intraday strategy is not for you. But plenty of strategies require trading no more than once a day. These are perfectly compatible with a busy lifestyle.

Where can you find a profitable strategy? You're already here. The Daily Profit Hunter has three recommendation services you can try. This is a great way to get started, and trade with minimum effort on your part.

The second thing you need is capital. Chances are you won't start with a large capital base. So how can you grow it over time?

One method is to continually reinvest your trading profits back into your business. This I recommend doing, but on its own, it won't be enough.

The next method is to use your paycheque. Every month, put aside a fixed amount of money towards your trading business. This is the fastest way to grow your capital over time. It ensures that you can grow your business even when your trading strategy loses money.

The other big benefit to a growing capital base is diversification. With enough capital, you can trade multiple strategies at once. You can trade options, futures, and stocks at the same time. Multiple strategies can reduce overall risk. If one strategy is losing money, the others can make up for it.

Treating trading like a business means taking a long-term view. Remember that your goal is not to make money this week or next week. Your goal is to make money over the long term, typically at least one year. All trading strategies suffer drawdowns and losses. And during these times, remind yourself that a successful business takes time to build.

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1 Responses to "How to Build a Trading Business"
hemant acharya
07 Sep, 2016
Dear sir, artical was great and guiding.pls give methadology of investment. Like 
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