Your Trading Needs a Business Plan

June 28, 2014 at 12:17 pm Leave a comment

What is the difference between a trading plan and a business plan for trading?

  • A trading plan answers you what to do when, following a trading system.
  • A business plan for trading lets you calculate the financial implications, giving you a clear idea what you are aiming for with your set capital and your set trading style.

Unfortunately, most traders never calculate the financial implications of their doing and with this never get to their goals or achieve being independent as a trader.

Make a change and reach your goals:

A business plan is a formal statement of a set of business goals compromised by a financial plan and action plan. It shall contain:

  • The reasons your goals are believed to be attainable.
  • Action steps to be taken for reaching those goals.
  • Background information about the resources needed to reach those goals.
  • Financial return on investment statement for specified time periods.

Do you have such in place as a trader or private investor?

Mostly, this is not the case and so we are sharing the action steps and start out with the Financial Plan; based on the money, we then produce the required action plan.

How much money do you want to make trading/investing?

As much as possible is not the right answer:

“If you don’t know where to go, you might not get there”. 

To establish and follow a business plan all starts out by having a trading system, which gives you answers to the following questions.

  • What time-frames can I and do I want to trade?
  • Which instruments do I want to trade/Invest in?
  • How will I administer my trades (entries, exits) and strive for continues improvement?
  • What alternatives do I have; how to appraise those and chose the best fitting for me?

A good trading system helps you to find swing points with clearly defined entries and exits. NeverLossTrading has developed algorithms which record and report institutional money moves. When you spot one of those, you just follow the institutional action and you trade where the money flows.

Example: Crude Oil, 30-min. on NeverLossTrading IncomeGenerator (on a price promotion).

IncomeGenerator Crude Oil Example

With the help of multiple real-time indicators, trade situations are spelled out: Entries, stops, targets. Assume that you get at least two out of three trades right, what will be the financial result and how will this be, if you get three out of four- or even five out of six right?

Either put such calculation scheme together on your own, or contact us, a trusted trading education institution. Our aim is to help you to achieve your goals as day trader, swing traders or a combination of both. or call: +1 866 455 4520 (schedule a personal consultation hour).

Be certain: You are in need of a financial plan that fits your personal risk tolerance and produces a projected income statement, showing you the implications of trading various instruments: Stocks, Options, Futures, Forex-Pairs in various position sizes.

Many traders always trade the same lot-size. To be financially sound, you need to adjust your lot size with the help of an instrument that:

  • Evaluates the probability of a trade setup in relation to the risk to take.
  • Adjusts the lot size trade by trade, increasing when the odds are in your favor

Odds and Position Sizing

From there, you build your financial statement and this is how it can look like:

Business Planning Model

When you know where to go and you have the right system in place, you have a high probability to get there!

Learn to be a high probability trader: Make a difference to your trading: or call: +1 866 455 4520

Schedule a personal consultation hour, to find the system that suits your best.

If you are not yet part of our communication network, sign up for our free trading tips and reports: 

Good trading,


Entry filed under: Day Trading, Financial Market Investment, Futures, Investor Education, Options, Stock Market, Stock Trading, Swing Trading, Technical Analysis, Trading, Trading Education, trading focus, Trading Mind, Trading Success. Tags: , , , , , .

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