Approach Trading Like A Business Securities Trader Group Presented by: Craig Schwenn

1. Approach Trading Like A Business Securities Trader Group Presented by: Craig Schwenn

2. Disclaimer This webinar/meetup is for educational purposes only. All examples and analysis are intended for these purposes and should not be considered as specific investment or trading advice. All hypothetical examples are for the purposes of teaching principles and are not intended to suggest future results. The risk of loss in trading securities can be substantial. Traders must consider all relevant risk factors including their own personal financial situation before trading.

3. Overview • Psychological Issues of Traders • Similarities of Trading and Running a Business • How to Create a Trading Plan

4. Overview • Psychological Issues of Traders • Similarities of Trading and Running a Business • How to Create a Trading Plan

5. Trading is Easy • Today, trading is available to everyone • Lots of information available to learn from • Barrier to entry is low • Minimal fund requirements • NO Knowledge required • Charting software varied and plentiful • Can buy and sell with a click of a button • Ease of use often produces financial disaster for most traders

6. Succeeding is not • Trading causes psychological behaviors in many traders • Emotion • Greed • Fear • Hope • Frustration • Poor Discipline • Trading on emotion • Not following rules • Either can lead to • Bad Trading Practices • Large Losses of Capital • Emotional and Physical Pain • To manage these behaviors, a trader needs to approach trading like running a business

7. What is Needed for a Business • An Entrepreneur • Resources • Business Plan

8. The Entrepreneur Traits of an Entrepreneur • Risk Taker • Desire to Learn • Adaptable • Tenacious • Passionate • Can manage fear, uncertainty, and failure

9. Resources Running a business requires resources • Time (labor) • Capital • Equipment

10. Running a Business Aspects of running a business in order to generate revenue • Generate leads • Accounting • Research and analysis of markets for products or services • Risk management • Record keeping • Managing growth • Performance review

11. Business Plan Purpose of a business Plan • Clearly express their ideas for potential investors • Show seriousness of intention • Clarify goals and direction • Organize and document information • Provide a roadmap to the future • Keeps entrepreneur on track

12. HUH? I thought this was a Trading Meetup?

13. What is Needed for a Businessto Trade • An EntrepreneurTrader • Resources • TradingBusiness Plan

14. The EntrepreneurTrader Traits of an Entrepreneura Trader • Risk Taker • Desire to Learn • Adaptable • Tenacious • Passionate • Can manage fear, uncertainty, and failure

15. Resources Running a businessTrading requires resources • Time (labor) • Capital • Equipment

16. Running a BusinessTrading Aspects of running a businesstrading in order to generate revenue • Generate leads (aka watch lists) • Accounting • Research and analysis of markets for products or services • Risk management • Record keeping • Managing growth • Performance review

17. BusinessTrading Plan Purpose of a businesstrading plan • Clearly express their ideas for potential investors (significant other) • Show seriousness of intention • Clarify goals and direction • Organize and document information • Provide a roadmap to the future • Keeps entrepreneur trader on track

18. Fail to Plan and You Plan to Fail

19. Building A Trading Plan

20. How to Create a Trading Plan • Analyze who you are • Define Mission and Vision Statements • Set goals and direction • Organize and document information • Document Trading Tools • Define Trading Strategies

21. Analyze Who You Are To begin, you need to ask yourself a series of questions. YOU NEED TO BE HONEST WITH YOURSELF • Why do you want to be a trader? • What drew you to trading? • What type of trader do you see yourself as? • What securities interest you? • Any other questions that help you understand your inner trader

22. Analyze Who You Are (part 2) Perform a SWOT Analysis • Strengths – (internal) What personal strengths can be applied to trading and that will help you become a successful trader • Weaknesses – (internal) What personal weaknesses which could prevent you from becoming a successful trader • Opportunities – (external) What opportunities exist in trading that you can take advantage of as a trader • Threats – (external) What threats exist in trading that could interfere with your plans for financial domination

23. Mission Statement • A statement of the trader’s purpose • It identifies short term endeavors the trader is attempting to meet • It is short and brief To help build a mission statement, you should answer these questions • What is your purpose for trading? • What do you intend to accomplish as a trader? • What are key measures of your success?

24. Vision Statement • A statement of the trader’s position in 5 to 10 years • Provides long-term direction and motivation • BAG – Big Audacious Goal To help build a vision statement, you should answer these questions • What kind of a trader will you be in 5 to 10 years? • What new things do you intend to pursue? • What needs do you want to satisfy?

25. Trading Tools • Brokers / Accounts • Trading Vehicles (securities) • Charting Software • Additional equipment & software • Trading journal • Account Software • Computer / Office Equipment • Research Sources • Blogs • Websites • Print Material

26. Trading Strategy • Daily Reminders (Wisdoms & Follies) • Trading Agenda • Trade Tracking and Rating Procedures • Money and Risk Management • Market Analysis • Trading Strategies (it’s the last item!!)

27. Questions?

28. Next Meetup Open Forum Trade Ideas, Market Analysis, and Q&A Tuesday, March 11, 2014 6:00 PM – 8:00 PM Southeast Regional Library Meeting Room B 10599 Deerwood Park Blvd. Jacksonville, FL, 32256