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Survival Guide for Traders: How to Set up and Organize Your Trading Business

Survival Guide for Traders How to Set up and Organize Your Trading Business

  • Author:
  • Publisher: John Wiley & Sons
  • ISBN: 9780470436424
  • Published In: October 2011
  • Format: Hardback , 352 pages
  • Jurisdiction: International ? Disclaimer:
    Countri(es) stated herein are used as reference only
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The must-have guide for anyone considering entering the exciting world of trading from home

The biggest stumbling block for people looking to launch their own trading businesses from home is a failure to understand the complexities of the "back office" operations needed to be successful. Survival Guide for Traders is here to help. Packed with strategies for building a successful home trading business, and featuring answers to questions most up-and-coming traders would never think to ask, Survival Guide for Traders is required reading for anyone who wants to start and sustain a trading business from home.

  • Explains how to create a trading business plan, set up an office, implement a trading system, use margin, deal with legal and financial issues, and keep appropriate records
  • Examines the opportunities and challenges of handling a home-based trading business
  • Details the process of setting up and organizing your trading business
  • Includes a comprehensive "Trading Business Plan Template" that you can customize
  • Written by Bennett McDowell, a highly regarded trader and trainer of traders

The book for anyone even thinking about entering the exciting world of trading, the Survival Guide for Traders offers practical solutions that anyone can use in order to build a lasting, thriving home trading business.

Acknowledgments.

Foreword (Toni Turner).

Preface.

Introduction: Survival Of The Fittest.

Part One: Survival Basics.

Chapter 1 It's A Jungle Out There!

Brawn, Brains and Technology.

Technological and Innovation Timeline.

Don't Bring a Knife to a Gunfight.

Right in My Own Backyard.

Chapter 2 Managing Your Money Is Serious Business.

Trust and Financial Advisors.

Tips on Selecting a Qualified Financial Advisor.

So, Who Are You Going To Trust?

Creating Your Own Business Plan Will Strengthen Your Ability to Prosper.

Rule #1: Trade, Invest and Live Within Your Means.

Chapter 3 Accountability, Setting Stops and the “Rogue” Factor.

Traders Are the Ultimate Entrepreneurs and Must Be Held Honestly Accountable.

Setting Stop Loss Exits Is Essential.

The Infamous Rogue Trader Named Nick Leeson.

Watch the Rogue Trader Movie.

Chapter 4 What's Your Net Worth?

Net Worth Statement.

Creating Your Financial Profile.

Are You Going Forward, Backward Or Standing In Place?

Chapter 5 The Life of an Entrepreneur.

New Start Up Businesses Have High Failure Rates.

What Does It Take For A New Business To Succeed?

Small Businesses Are the Backbone of the Economy.

Reduce Your Expenses and Increase Your Revenue.

How to Reduce Expenses.

A Penny Saved Is Really One and a Half Pennies Earned.

Increasing Revenue.

Chapter 6 Understanding Financial Markets.

Buyer And Seller Agree On Price, But…They Disagree On Value.

Buyers and Sellers And The Financial Order Flow Process.

Types of Orders.

Using Margin and Leverage.

The Importance of Liquidity And Volume.

Zero Liquidity.

Volatility and Market Gaps.

How Can the Bid And Ask, Spreads, Bad Fills And Slippage Affect Your Profits?

You Can Parallel Test Your Broker and Data Feeds.

“…I Feel The Need For Speed…”

So Many Markets to Choose From…

Ticker Symbols at a Glance.

Your Data Feed Is Your Lifeline.

How to Choose The Best Broker For Your Needs.

How to Choose the Best Front-End Platform for Your Needs.

Manias, Panics, and Crashes.

Chapter 7 Adapting To Changing Market Cycles.

4 Major Market Cycles.

It's All in a Name.

Using Trendlines to Identify Market Cycles.

Using Elliott Wave to Identify Market Cycles.

The Pitfalls of Not Identifying Market Cycles Correctly.

Chapter 8 Education and Support.

A Few Classic Trading Books.

Learning Styles.

Repetition, Repetition, Repetition.

Paper-Trading Is an Essential Learning Tool.

Education 101.

You Can Learn From Your Mistakes and Failures.

Life Mentors, Professional Mentors and Trading Coaches.

Chapter 9 Writing a Business Plan.

Business Plan: Blank Template.

Historical Monthly Averages.

Make a Promise to Yourself.

Business Plan Front Matter: Title Page, Table of Contents and Mission Statement.

1. Summary.

1:A Business Concept.

1:B Current Profile.

1:C Key Success Factors.

1.D Historical Monthly Averages.

1:E Financial Situation.

1:F Vision Statement.

2. Strategy.

2:A Market Selection.

2:B Entries And Exits.

2:C Money Management Strategy.

2:D Potential threats and risks.

2:E Research And Development.

3. Operations.

3:A Office set-up.

3:B Order Execution.

3:C Record Keeping.

4 Financials.

4:A Starting Balance Sheet.

4:B Monthly and Yearly Cash Flow Forecast.

4:C Profit and loss history.

4:D Key Performance Ratios.

Part Two: The Financial Pie.

Chapter 10 The First Slice: Trading and Investing Rules.

Develop and Test Your System.

Perseverance Is the Holy Grail.

Failure is Not an Option.

Creating your Trading Rule Profile.

A Note about Day Trading verus Position Trading.

Holding Trades Overnight and Assuming Overnight Risk.

My Definition of Scalping.

Sample Trading Rules to Start With.

Combining Fundamental and Technical Signals In Your Trading Rules.

Technical Analysis Signals.

Fundamental Analysis Signals.

Value Investing In a Bear Market.

The Importance of Paper Trading.

Set Up Multiple Brokerage Accounts To Monitor Your Trading Results.

Chapter 11 The Second Slice.

Scanning For Market Opportunities.

Without Risk, There Is No Opportunity…

Technical Scanning Techniques.

Fundamental Scanning Techniques.

Opportunity Is Always Abundant In The Markets.

Stocks.

Options.

Futures.

Forex.

ETFs.

Chapter 12 The Third Slice.

Money Management.

What Can Money Management Do For You?

3 Ways to Control Risk.

List of Risk Factors to Develop Your Plan Around.

Stop Loss Exits Can Save the Day.

Your Survival Depends On Having a Healthy Respect for the Risk of Ruin.

The Optimal f Formula Gives You Information That Is Similar To the Risk Of Ruin Tables.

Comparing Optimal ƒ Equation Results to the Risk Of Ruin Tables.

2 Percent Risk Formula.

Using the Trade Size Formula.

Trade Size Formula Using Leverage.

Using the Trade Size Calculator.

Good Record Keeping and Performance Analysis Are Essential.

Chapter 13 Fourth Slice - Financial Psychology.

The Trader's Mindset.

Even Good Change Can Be Stressful and Emotionally Challenging.

15 Destructive Psychological Trading Issues and Their Causes.

Optical Illusions Show How Our Minds Can Mislead Us.

Epilogue.

Appendix A 10-Day Trial on TradersCoach.com® Software.

Appendix B: ART® Basics.

Appendix C: Resources: Brokers, Data Providers and More.

Appendix D: Suggested Reading and Education Books.

Appendix E: Market Exchanges.

Glossary.

About The Author.

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