Starting a Trading Business

If a new trader wants to be a successful, they will need to treat their trading like they would operate a profitable business. Many traders lose a lot of money by approaching trading like it is a hobby. In trading, making money is the goal, and must be kept at the forefront of a trader’s mind if they are to be successful. Fun and excitement in trading can be expensive entertainment. The reality is that most of the time, trading is boring. A trader must treat the market like they would any other business, utilizing discipline and great care to grow their capital and be successful.

1. You can’t open your trading business until you have a full business plan.
2. Your inventory is your current positions; you have to buy them for less than you intend to sell them.
3. Your customers are who you sell to; they have to be willing to pay more than you bought your positions for.
4. Your mind is the manager of your business; you can’t let pride, fear, or greed lead to an unprofitable mistake.
5. Your business must have insurance to manage risk. Stop losses and hedges are your insurance against big losses.
6. Location is everything. You must conduct your business where there are ample buyers and sellers so you don’t get stuck with positions that no one wants.
7. Your current positions are your employees. You have to keep the ones that produce gains, and fire the ones that lose. 
8. Expansion of your business can only happen after your first location is successful. Once you have mastered a system of entries and exits you can add new markets and systems.
9. Your trading capital and your positions are your inventory. Lose that and you are out of business.
10. The only reason to be in business is to make money. If you don’t make money, you need a new business plan.

Source: newtraderu.com

If you Want to be Rich, First Stop Being so Frightened

# If you are unwilling to fail, sometimes publicly, and even catastrophically, you stand little chance of ever getting rich.

# If you care what the neighbours think, you will never get rich.

# If you cannot bear the thought of causing worry to your family, spouse or lover while you plough a lonely, dangerous road rather than taking the safe option of a regular job, you will never get rich.

# If you have artistic inclinations and fear that the search for wealth will coarsen such talents, you will never get rich. (Because your fear, in this instance, is well justified.)

# If you are not prepared to work longer hours than almost anyone you know, despite the jibes of colleagues and friends, you are unlikely to get rich.

# If you cannot convince yourself that you are “good enough” to be rich, you will never get rich.

# If you cannot treat your quest to get rich as a game, you will never be rich.

# If you cannot face up to your fear of failure, you will never be rich.

Source: Extracted from http://www.vjianke.com/YN80J.clip

Quote for the day

“To get profit without risk, experience without danger, and reward without work, is as impossible as it is to live without being born.” - A. P. Gouthev