Plan your Trading Business

  "If you fail to plan, you are planning to fail"

Now since all us want to do trading lets take and discuss big picture of 'how to plan trading'. We will be looking only on different aspects from intraday point of view. Also will be comparing it with traditional business plan. So lets start our planning for intraday trading.

1. Can you do It? Now since you are at a step of planning how to proceed further in trading, you must very clear on you can do it or not. Intraday trading require lot of reflexes and quick decision making skills, with a blend of patience and aggressiveness both. It is job which require full time attention and can't left over simply. Look into yourself and ensure that you can do it.

2.  Capital Planning- It is most important thing to manage when it come to any business. For every business you need to plan expense and earning. Capital planning in trading can be done as allocate 40% for mutual fund, 30% for equity trade, and remaining 30% for intraday or swing trade. Capital planning will however more depend on how much capital you are working with. Since it is a business you can start with very low capital.

3.  Expenses- Another important part of business is expenses done. Expenses in this business will include cost like brokerage, slippage, carry over charges etc. Calculate all little expenses which are done.

4. Profit- What attracts everyone to this market is Profits. The big profit which are seen in this market makes it most attractive thing to do. But plan profit also, once you reach decided profit level exit the position. Being greedy is good but day dreaming is bad. Have predefined profit just like in most other business.

5. Risk- All business has some risk associated with it , and so is risk associated with trading also. Define your maximum risk too, just like you define profit. Never be afraid of loss, one who can master loss can only master profits.

6. Set Rules- Each successful business has set of rules which they follow. Same way have set of rules which you can follow. Make your own rules and follow them strictly. Don't deviate from rules. Review them from time to time and make changes only if you really need them.

7. Keep Track Record- I have seen most of shopkeeper/ businessman keep a record book and before sleeping they do finish it each day. But this thing is often ignored while trading. If you maintain record on daily basis it helps to identify mistakes, keep track of earning and expenses and keep an eye on your total capital. Always maintain proper records after day close. If you need track record excel sheet do fill below form and will provide you with same.

Trading has no guarantee that you will make money, but with proper planning your chances to be successful increases gradually. A successful trader always consider trading as a business and you should also plan it in same way to be successful.