How To Start A Successful Trading Business
When you start trading, you need to go into it like you would if you were getting ready to start a business.
Too often, I see new ‘traders’ who open their account and before ever mapping out any goals, a strategy, a trading plan, or anything, they’re already putting money into the markets…
…and for me, this isn’t trading, this is gambling.
So in this article, I’m going to walk you through how you can start your own successful trading business.
So let’s dive in!
Starting A Trading Business: Step 1 – Charting Software
First, as a technical trader (like me) you MUST have good charting software.
Charting software is your window into the world of stocks.
As a technical trader, we rely on charts and indicators to find high-probability setups.
Charting software with good indicators is an essential first step in your path to being a successful trader.
I personally use (and highly recommend) TradingView.
It is a paid service and for what I do, I use the Pro Version which currently costs $14.95 per month but it is well worth it.
Remember, starting your own successful trading business requires a modest investment into the ‘infrastructure’ of your business.
Step 2 – Finding The Right Broker
Now on to step 2, finding the right broker for you!
Finding the right broker can be a tricky process, especially if you live outside of the United States.
If you’re trading stocks and options, I highly recommend tastyworks, or Interactive Brokers if you live outside the U.S.
Starting A Trading Business: Step 3 – Trading Strategy
Next, now that you have your charting software and broker, every trader needs a good trading strategy.
Similar to the broker, one size does not fit all. Why?
Well, there are a LOT of variables that can go into developing your trading strategy.
For example, are you trading for Income or Growth or the amount you have to trade with?
All of these things play a big factor in the type of strategy you want to, can, or should trade. Right now, I’m trading two strategies. My core strategies right now are, The PowerX Strategy and The Wheel.
Step 4 – Trading Computer
The next thing to consider when getting your trading business set up is you will need a computer.
Almost all brokers and trading software are cloud-based, so you don’t need a seriously advanced computer anymore.
Most computers that are less than 3 years old should be more than powerful enough to run even the most system-intensive trading platform.
Step 5 – Additional Monitors.
Now, for your home set up, I think at least one additional monitor is a must. The good news is that if you have a laptop, you already have one monitor! If you travel a lot (like me) I would highly recommend the ASUS MB169B+ 15.6″ Full HD 1920×1080 IPS USB Portable Monitor.
They’re lightweight and work great on the road or at home. It fits easily in my backpack (because I HATE checking bags) and doesn’t add much weight.
Step 6 – Trading Newsletters
Next, over my morning coffee, I like to read a few different trading newsletters.
I have three primary newsletters right now where I get most of my market-related news.
Most of the talking heads on TV are absolutely terrible for getting non-biased information anymore.
No matter what station, everything you hear is coming through some sort of filter.
For this reason, I stick with these three newsletters that I’ve found to provide good info:
- Morning Brew
- Seeking Alpha’s Wall Street Breakfast
- The Rockwell Trading Newsletter
Summary
Now that you have all of the pieces in place to start your trading business off on the right foot, in my next article I’m going to go through something that at first, I’m sure you will cringe: Trading Taxes.
But I assure you if you’re proactive and take the time to get set up and structured properly, taxes aren’t actually as bad as you’d think for full-time traders.
I hope this has helped and you’ve enjoyed it.
Good trading!
Too often, I see new ‘traders’ who open their account and before ever mapping out any goals, a strategy, a trading plan, or anything, they’re already putting money into the markets…
…and for me, this isn’t trading, this is gambling.
So in this article, I’m going to walk you through how you can start your own successful trading business.
So let’s dive in!
Starting A Trading Business: Step 1 – Charting Software
First, as a technical trader (like me) you MUST have good charting software.
Charting software is your window into the world of stocks.
As a technical trader, we rely on charts and indicators to find high-probability setups.
Charting software with good indicators is an essential first step in your path to being a successful trader.
I personally use (and highly recommend) TradingView.
It is a paid service and for what I do, I use the Pro Version which currently costs $14.95 per month but it is well worth it.
Remember, starting your own successful trading business requires a modest investment into the ‘infrastructure’ of your business.
Step 2 – Finding The Right Broker
Now on to step 2, finding the right broker for you!
Finding the right broker can be a tricky process, especially if you live outside of the United States.
If you’re trading stocks and options, I highly recommend tastyworks, or Interactive Brokers if you live outside the U.S.
Starting A Trading Business: Step 3 – Trading Strategy
Next, now that you have your charting software and broker, every trader needs a good trading strategy.
Similar to the broker, one size does not fit all. Why?
Well, there are a LOT of variables that can go into developing your trading strategy.
For example, are you trading for Income or Growth or the amount you have to trade with?
All of these things play a big factor in the type of strategy you want to, can, or should trade. Right now, I’m trading two strategies. My core strategies right now are, The PowerX Strategy and The Wheel.
Step 4 – Trading Computer
The next thing to consider when getting your trading business set up is you will need a computer.
Almost all brokers and trading software are cloud-based, so you don’t need a seriously advanced computer anymore.
Most computers that are less than 3 years old should be more than powerful enough to run even the most system-intensive trading platform.
Step 5 – Additional Monitors.
Now, for your home set up, I think at least one additional monitor is a must. The good news is that if you have a laptop, you already have one monitor! If you travel a lot (like me) I would highly recommend the ASUS MB169B+ 15.6″ Full HD 1920×1080 IPS USB Portable Monitor.
They’re lightweight and work great on the road or at home. It fits easily in my backpack (because I HATE checking bags) and doesn’t add much weight.
Step 6 – Trading Newsletters
Next, over my morning coffee, I like to read a few different trading newsletters.
I have three primary newsletters right now where I get most of my market-related news.
Most of the talking heads on TV are absolutely terrible for getting non-biased information anymore.
No matter what station, everything you hear is coming through some sort of filter.
For this reason, I stick with these three newsletters that I’ve found to provide good info:
- Morning Brew
- Seeking Alpha’s Wall Street Breakfast
- The Rockwell Trading Newsletter
Summary
Now that you have all of the pieces in place to start your trading business off on the right foot, in my next article I’m going to go through something that at first, I’m sure you will cringe: Trading Taxes.
But I assure you if you’re proactive and take the time to get set up and structured properly, taxes aren’t actually as bad as you’d think for full-time traders.
I hope this has helped and you’ve enjoyed it.
Good trading!
