Treat TRADING like a BUSINESS | ForexScopes

• ForexScopes
• 14 Sep, 2022

Traders must be as disciplined as any business owner. Making a written trading plan is a critical first step.

Set up your own accounting system to keep track of your trading results and compare them to your broker's reports.

All you need is a simple Excel spreadsheet with daily, weekly, and monthly results. 

Include gross profit/loss, the number of trades, commission costs, ECN costs, other costs, net profit/loss, equity (check that it matches brokerage reports), and any other relevant information.

Make better trades by using this information. Examine your results for patterns and the relationship between your profits and costs.

A list of all the different types of trading you intend to do during the day or week should be included in your trading plan.
 

Successful traders do not simply open their charts and execute their first trade. They planned for everything that could happen before deciding to attack.

The most important thing to do is to prepare. Sunday is usually the start of a new business week for me.

On Sundays, I go through all of the charts and highlight the most important trading opportunities for the upcoming week.

As a result, I can concentrate on trading setups and trade in accordance with the trading plan.
 

If you already have a trading strategy, make sure it addresses the following questions:

• What strategy do you intend to employ when trading currency pairs?
   
• Which strategy will you devote the majority of your time and energy to? 
   
• What kind of business do you run?
   
• How do you manage your money and risks?
   
• Another advantage of having a trading plan is that it allows you to define your trading objectives more clearly.You can better control your overall risk, as well as your money and trading strategy, if you know when to change your risk based on how the market is performing.

If you want to trade like a business, the most important piece of paper you will need is a trading plan.

Tight trading regulations

If you are serious about forex trading and want to treat it as a business, you should establish a trading routine to help you stay consistent throughout the week.

This will assist you in making as much money as possible while losing as little as possible.

The following should be part of your trading routine:

• When looking for market information.
   
• How to modify your trade while it is still active during the week.
   
• When are you going to start keeping track of your trades? It happens on a daily or weekly basis.
   
• When should you stop making trades?
   
• If you want trading to become a habit, you should make it a priority in your daily life.

Maintaining consistent trading performance throughout the week will be easier if you have a trading routine that is compatible with the rest of your life.