Business Plan

1. Mission Statement
- To create and accumulate wealth consistently that is able to bring in passive income that is exceeding monthly expenses ($8k) by age of 48 via any trading activities.
- Trading as a serious business.
- Always protect original seed money ($150k).

2. Objectives (Beginner)
- My Goals
- Maximum allowable capital loss per year (2% = 3k).
- Minimum Risk :Reward Ratio (1:3)
- Expectancy
- Create all necessary systems for the business and implement with discipline.

3. Market Beliefs
See here

4. Understanding Market ???
- Singapore currently in ??? market
- Globalisation. Lots of invest funds cmes from other countries.
- Changes in rules, regulations and policies
- What are the leading indicators of stocks?
- What type of market? Volatile, non-volatile, trending, sideways
- What is the market trend for the past quarter (13 week period) ??

5. My Strength
- Easily understand great picture
- Ability to see overall picture
- No emotional impact when losing money
- Systematic thinking
- Discipline

6. My weakness
- Not enough knowledge (market, system)
- No defined trading plan and system
- Lack of patience
- Cannot control emotions when market is volatile
- Slow to get out of losses when stop loss is being hit.

7. Tactical Trading Strategies
- Find 3 strategies that I can use (and for which market type)
- Consider entry, exit, timing signal, expectancy, position sizing

8. Daily Procedures
Timing
- 8-9am - Review psychology, check system & previous decision
- 9-9.30am - Monitor and enter market
- 12-12.30pm - Monitor market
- 4-5.15pm - Monitor market
- 5.30-7pm - Review portfolio & next day market preparation.
Yoga
Diet
Trading psychology exercises

9. Educational Plan
What I need to know
- Psychology (Market & Trading)
- Market information
- Trading System
- Risk Management
- Review method
Self Weakness improvement method
Where can I get information :
- Internet
- Books
- Seminar
- Investment Fair

10. Worst- Case Contingency Planning
- Personal Emergencies - Close all trading positions and keep all investment positions
- Unexpected market disasters - Close all positions at market price at earliest period
- Equipment and Data Problems - Have a backup laptop, data analysis program, mobile internet connection/brokerage internet connection
- Major Life Changes - Decrease trading frequency or change all to long term fundamental investment
-Psychological/Discipline Problems - Stay out of market till issues resolved (for big issues); trade smaller quantity while resolving issues (smaller issues)
-Broker Problem - change broker
MENTAL REHEARSAL on all contingency plans !!!

11. Other Systems

Finance
- Cash flow & Budgeting
- What is the cost of running business

Data Management
- Backtesting
- Trading/Data Errors how?
- Does data account for splits, dividends, other adjustments?

Research
-on systems for each market types

Operations
- Human Resources

• Me
• Psychological
• Physical
• Mental
  

- Equipment

• Laptop (2x), Internet connection, phone, Electricity, trading platform (2x), data analysis platform (2x), Brokerage (3x)
  
• Quarterly maintenance
• Monthly Bill recording

Organization & Management
- Aim to be an Investor Trader that INVEST in Trading SYSTEMS
- At least be the Business-owner trader who owns and develops the systems.

12. Mistake Prevention ???