How To: Treat Trading Like A Business
Jun 09, 2024
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Podcast ep 15 - This post is a summarized version of our PODCAST which you can find the episode by clicking this sentence.
Trading can’t be treated like a hobby, there is no “dabbling” in the markets if you want to be a trader. It must be taken serious as businesses do. After all, we are handling a lot of money. Here are 10 tips in ways to traders can treat their trading like a business. And if you need to hear it….FOLLOW YOUR PLAN, Aloha.
10 tips
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Journal
All business has books, keep a record of everything (tax purposes even expenses even if you aren’t a business yet, get into the HABIT of record keeping).
2. Make smart decisions
Don’t go and buy all of the fanciest trading software, news feeds, computer power, don’t need a personal assistant in your first year of trading. Keep your expenses small and invest in your learning.
3. Stoic
Keep your emotions out of your TRADES! When trading, don’t trade off of emotions. Businesses (generally) have no emotions (they are profit based, what moves the needle) neither should you. Would you rather be RIGHT or make profit?
4. Expenses -
Losses are expected and if we are looking at it as a business, it can be counted as “expenses” of running your business. Keep expenses small. Learn how to take advantages of expenses (taxes) Focus on keeping your capital and GROWING it!
5. Cut your losses
If the trade isn't making you money or edge, cut it out of your plan. Don't hang on to losers. USE Stop Losses.
6. Reach up for new people.
Increase your network with traders you strive to be like. It helps increase confidence and accountability. Learn from them directly or indirectly.
7. Continuing education
AKA investments in yourself - don't stop learning - join conferences, masterminds etc. Always be a student to the market and yourself.
8. Operate to your personality
You aren’t going to start a business you know nothing about or dislike doing. In trading, What approach makes the most sense to you? Where you can easily follow and understand it. Most probable times to use your strategy to make the most money. There are millions of similar businesses but the appeal to the customer is not always the same.
9. Scaling
Once your trading is going along and being much more consistent, look to figure how to increase your trading account size. When business is going, you’ll add employees, train them how to replicate your process. You will eventually have to learn how to manage bigger sized accounts
10. Performance Review
At least annually. This is sort of like Earnings review for business, where do they stand? How are they performing in current market conditions?
Aloha! We are Glenn & Reid, founders of Hawai'i Trading Academy.
Our Mission: Empower & nurture traders.
Our Ethos: Integrity and transparency guide us as we focus on the essential pillars of trading success: Risk Management, Edge, and Psychology.
Mahalo for reading and trade well! — Glenn & Reid | Hawaiʻi Trading Academy
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