Treat your Trading As a Business Outline

Title Slide: Treating your Trading like a Business

Slide 1: Your Guide
Name of Presenter: Sean Reed
Expertise of Presenter: 20 years as an Active Trader, Mentor, coach, and all around amazing guy!

Slide 2: Trading and investing is better suited if treated like a business. Any venture should have a clear and defined plan which outlines their strengths, hurdles, goals, time commitment, and what the end game might be. Creating systems to define success and evaluate their progress over time is imperative.

Bullet Point #1: Identify your strengths, weaknesses, and personality traits
Bullet Point #2: Create a mission statement
Bullet Point #3: Identify trading goals bigger than yourself
Bullet Point #4: What assets will you be trading
Bullet Point #4: Establish your daily routine and creating office hours
Bullet Point #5: Understanding money management, risk management, and R/R multiples
Bullet Point #6: Position sizing based on initial risk assessment
Bullet Point #7: Focus on a trade strategy that suits your style and personality
Bullet Point #8: Perform a review process on your trades
Bullet Point #9: Education plan How are you going to grow in your knowledge and mastery of trading?

Slide 3: Why am I doing this? Mission Statement
Bullet Point #1: You need a purpose

Slide 4: What are my strengths as an Investor / Trader
Bullet Point #1: Discipline, Patience, Committed, Organized, Planner
Bullet Point #2: Ability to focus, and Self initiator

Slide 5: What are my hurdles
Bullet Point #1: No Discipline, Indecisiveness, Not a good listener, Impatient, No goals, Impulsive, Can’t Focus, procrastination…Etc
Bullet Point #2: What are the systems your going to put into place to overcome these hurdles?

Slide 6: My income goals Are? Define short term and final outcome (end-game)
Bullet Point #1: Daily, weekly, Monthly

Slide 7: What assets will I be trading

Slide 8: What accounts and capital will you be working with.
Bullet Point #1: Goals need to be set for each style and account

Slide 9: What time-frames (charts) will I be using
Bullet Point #1: 5min chart, daily, weekly, monthly?

Slide 10: Are you an investor or active trader?
Bullet Point #1: Define strategy, set-ups, rules for entries and exits

Slide 11: Rules for risk management
Bullet Point #1: Creating a system to use stop losses on every trade
Bullet Point #2: Establishing Entry, Stop, Target for every trade
Bullet Point #3: Position Sizing so the risk stays the same for every trade
Bullet Point #4: Risk to reward ratio = R/R multiples

Slide 12: Risk Management Continued
Bullet Point #1: Always using stops (Get rid of self distructive behavior)
Bullet Point #2: Cut Small losers and let winners run
Bullet Point #3: Defining profit and loss as a multiple on initial risk
Bullet Point #4: 1 to 2 multiple or 1 to 3 multiple (unit of risk vs. unit of reward)
Bullet Point #5: Never risking over a certain amount. Pre-determined prior to entry
Bullet Point #6: Never risk more than a certain % for the entire account with multiple positions
Bullet Point #7: Are you Diversified?

Slide 13: Predefined Entry, Stop, Target eliminates emotion.
Bullet Point #1: Make it robotic!

Slide 14: Trade Journal
Bullet Point #1: Learn a lesson from every trade
Bullet Point #2: Why did you place the trade
Bullet Point #3: Why did you exit the trade
Bullet Point #4: What would you do differently? Takeaways
Bullet Point #5: No new transactions until you have reflected on the one you just completed

Slide 15: Placing the trade (The Rules)
Bullet Point #1: Creating a check list procedure before entering a
transaction

Slide 16: Trade management
Bullet Point #1: Adjusting stops and or targets

Slide 17: Define:
Bullet Point #1: Account size, Max risk per trade, Maximum daily loss, Maximum weekly loss, and Maximum monthly loss
Bullet Point #2: Create a system or accountability: I will not trade for three days if violate my daily max loss.

Slide 18: Trading schedule and time commitment (office hours)
Bullet Point #1: Define trading times of the work week
Bullet Point #2: Assign Time for further development / learning
Slide 19: Education plan
Bullet Point #1: 10,000 hours to mastery
Bullet Point #2: Set aside the time to learn
Bullet Point #3: Bite by bite
Bullet Point #4: Regular repetition of the disciplines (like simulation, back testing, trade Journaling)
Bullet Point #5: Connection to those who are further ahead than you (teachers and peers)
Bullet Point #6: Let the data be your guide, not your preferences and intuitions