Creating a Business plan for trading Let’s assume that know nothing about trading. You have some job that gives you acceptable wages and has allowed you to accumulate some money. You do not have any trading system and know little about trading at all – you've just heard something here and there on CNBC etc. So, before diving into trading turmoil with all its advantages and horrors – start with a business plan. It will help you, first to assess your own factor of safety and give you significant assistance – is trading on your depth or not. There are a lot of different expenses that are associated with trading. Let’s try to create some balance sheet that will help us: 1. Assets This is simple – first, it includes your initial money that your job has allowed you to save. Second, there will be an annual absolutely necessary sum for you to keep alive. As you understand it will not include a Porsche, Rolex watches and Fiji 5 star apartments. At the first stage of planning – this is a sum that is absolutely necessary for your living – food, utilities and other well-known stuff. Be ready to combine trading with your job, at least for some time, because you never know – will you succeed or not. Your current job will be your airbag at starting time. 2. Expenses – a bit greater item in our income sheet 2.1 Trading Education This is the most important part of business plan, since it shows not just expenses, but includes payment for searching for your trading system. This row may include a considerable amount of money. This is a rule of thumb, if you want to make trading so profitable to make a living, then these expenses will be needed to explore a lot of different approaches and methods, until you will find some style and approach to the market that is absolutely suitable personally for you. It makes sense to formulate a plan on how you want to approach your education process and learning since this could be done differently: - Live seminars and workshops; - Books, magazines and newspapers; - Internet sites and forums; - Live trading rooms; - Mentoring and tutorial programs; - Newsletters. Any of these sources does not exclude its combination with the other ones – and in most cases this is definitely so. For instance you may tell someone, that “I’m ready to spend 5000 USD on education in my first year of trading”. On the followed years you have to rescale this sum, according to where you stand on your learning path and what particular education you need at this point. Let me give you some humble advice. As a rule, the most expensive are live seminars and workshops, since they are studied by master itself or his/her nearest fellows. Also it is very probable that this will require travel also – that is additional spending of money. Since you do not even develop your own trading style and do not know what particular method to use – probably it makes sense to learn different methods from cheaper sources. You will not be able to dig deep with them, but you will know sufficient information to test this method and decide does it suitable for you. For instance, let’s discuss DiNapoli workshop – just for example, ok? This way of thoughts could be apply to any other method: - His book “Trading with DiNapoli levels” costs around 160$; - Some additional material that probably will become useful (DVD, Mp3) costs around 150$ each; - Proprietary forum (clients only) costs around 300$ per year. Also you have a possibility to get free access for limited time if you will purchase book or some other products. So, as a result you have to pay approximately 800-1000$ to assess this method and try to apply it. If you will want to visit private seminars – there are two types of them – standard and advanced. To visit advanced you have to attend standard first. The standard seminar costs 1500$ and the advanced costs another 1800$. Also you have to add travel and living costs to that. Besides, we have to note that some seminars could be significantly more expensive.