John,

A general question. Have you or other traders you know of, written and used  
a business plan to help develop your trading business? Would you consider a
plan  a key element in successful trading?

Ray in our study group reminded me of this a couple of weeks ago, and I had  
actually started one a couple of years ago but I let it fall by the  wayside.
I am in the process, though, of laying a more detailed plan that I can  use to
put a better structure around my trading.

It seems logically that the more one's trading business is analyzed and the  
reasons for entering and exiting trades written out and monitored and refined,
 that the better the chances for trading success, but just wanted the input
of an  accomplished trader on this.

Thanks,

Jim

This is a great idea.  I have always tried to present trading as a
serious business to our group and that is how this profession should be
approached.  You should have a detailed plan as to how much money you
want to spend on overhead, the amount of capital you are starting with,
what your monthly loss limits are, what are your monthly and annual
goals are, etc.

I think this can help you stay focused.  It will also keep you from
trying to hit home runs.  And you won't be so paranoid about your
monthly overhead costs such as software, data, broadband and
commissions.

John