Once you have decided to go ahead with making a career in trading, you need to visualize yourself as running a business.
As with any business, before you jump in, you need to do a lot of homework. As a business, you need to decide on your
- Capital requirements
- Staffing requirements
- Your unique skills that will satisfy your customers
- Revenue streams and their estimates
- Costs that you will incur as expenses
- A detail layout of transaction initialization and execution between your business and your customer.
Having understood the above, it is critically important for you to visualize that there are three distinct and unique entities in the above discussion. It is very easy to get carried away by the thought that in trading, you are your own boss. Yes, that is a fact. You really are your own boss. But what about the other two? Who is your staff? and Who is your customer?
Of course it is you and you only.
As a boss, you will decide what business transaction will be initiated and how it will proceed towards its logical end.
As a staff, you will ensure that the well laid down process is adhered to. You will also ensure that there is proper reporting back to the boss on success, failures, delays, deviations, etc.
As a customer, you will be demanding from the business, standards of delivery of service, ruthlessly. You will not tolerate any delays and deviations.
Also note, that you are the financier of your business as well. So, as a financier, you need to make a periodic and balanced financial review of your business as well.
Summarizing all said above, you need to prepare a time table for yourself and divide when and in what circumstances you will play which role. The time may be pre-defined as in "Everyday before start of market", or "Once a week on Fridays". Or it may be dependent on market circumstances as in "When a entry into a trade is signaled" or "When a reversal of direction triggers". But it will be only you, who will be responsible to put on the appropriate hat at the appropriate time and take the appropriate action and ask the appropriate questions. For example, while moving a stop loss, you are wearing the hat of a staff member. At that time, the financier in you should not be peeping in and feeling happy about the capital saved. Also at a day end review, the CEO in you should ask the proper questions to the staff in you about the actual process of managing that trade.
Not being aware of these multiple duties, can be extremely dangerous to your "Business of trading" and can be instrumental in driving you out of business.
On the other hand, knowing these multiple responsibilities and handling them rightly, will ensure that your business progresses consistently and that you will reach your goal sooner rather than later.
Happy Trading !!!
Also note, that you are the financier of your business as well. So, as a financier, you need to make a periodic and balanced financial review of your business as well.
Summarizing all said above, you need to prepare a time table for yourself and divide when and in what circumstances you will play which role. The time may be pre-defined as in "Everyday before start of market", or "Once a week on Fridays". Or it may be dependent on market circumstances as in "When a entry into a trade is signaled" or "When a reversal of direction triggers". But it will be only you, who will be responsible to put on the appropriate hat at the appropriate time and take the appropriate action and ask the appropriate questions. For example, while moving a stop loss, you are wearing the hat of a staff member. At that time, the financier in you should not be peeping in and feeling happy about the capital saved. Also at a day end review, the CEO in you should ask the proper questions to the staff in you about the actual process of managing that trade.
Not being aware of these multiple duties, can be extremely dangerous to your "Business of trading" and can be instrumental in driving you out of business.
On the other hand, knowing these multiple responsibilities and handling them rightly, will ensure that your business progresses consistently and that you will reach your goal sooner rather than later.
Happy Trading !!!
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