Bear Bull Traders Business Plan Template

Trading Business Plan for ___________Enterprises at: xx Month 20xx
Address: Phone:
Email:
TRADING VISON
 Beginning (Month, Day, Year) __________ Enterprises will begin live day trading to
___________. Within ___ year(s) from live trading, __________ Enterprises will execute the day
trading strategies to facilitate a working income to allow for a full-time occupation as a
professional day trader.
TRADING MISSION STATEMENT
 ________ Enterprises mission is to systematically and consistently grow our assets under
management by leveraging sound trading strategies while offering world-class flexibility to
achieve personal goals.
TRADING BUSINESS TIMELINE
 To achieve success, the owner will begin an intense education & simulated trading program with
the highlighted bench marks below.
o Month Day, Year – Decided to pursue Day Trading as a profession.

o Month Day, Year – Develop an educational plan
o Month Day, Year – Begin Simulator Trading
o Month Day, Year – Choose a broker
SWOT ANALYSIS
Strengths Weaknesses
Opportunities Threats
TOOLS & SERVICES
1. I will use ______________ internet provider who offers ____ Mbps download and ___ Mbps
upload speeds on a (Fiber/Cable) network.
2. I am or am not affected by FINRA’s pattern day trader rule and have choose to use _____ as my
broker.
3. I will use ______ trading platform to execute my trades.
4. I choose to (utilize BBT/purchase) scanners through ________ services.
5. I choose to utilize (word/Excel/OneNote/Chartlog/Trader Vue) for my
technical/mechanical/psychology journal
6. I choose to utilize (Excel/Chartlog/Tradervue) for my statistical analysis of trades.
7. I choose to join _____________ Day Trading community.
EDUCATION PLAN
MECHANICAL & TECHNICAL SKILLS


PSYCHOLOGY SKILLS

TRADING RULES
Rule 1: Day Trading is not a strategy to get rich quickly
Rule 2: Day Trading is not easy. It is a serious business, and you should treat it as such
Rule 3: Day Traders do not hold positions overnight. If necessary, you must sell with a loss to make sure
you do not hold onto any stock overnight
Rule 4: Always ask, "Is the stock moving because the overall market is moving, or is it moving because it
has an unique fundament catalyst."
Rule 5: Success in day trading comes from risk management - finding low-risk entries with a high
potential reward. The minimum win:lose ratio for me is 2:1
Rule 6: Your broker will buy and sell stocks for you at the Exchange. Your only job as a day trader is to
manage risk. You cannot be a successful day trader without excellent risk management skills, even if you
are the master of many effective strategies.
Rule 7: Retail traders trade only Stocks in Play, high relative volume stocks that have fundamental
catalyst and are being traded regardless of the overall market.
Rule 8: Experienced traders are like guerrilla soldiers. They jump out at just the right time, take their
profit and get out.
Rule 9: Hollow candlesticks, where the close is greater than the open, indicate buying pressure. Filled
candlesticks, where the close is less than the open, indicate selling pressure.
Rule 10: Indicators only indicate; they should not be allowed to dictate.
Rule 11: Profitable trading does not involve emotion. If you are an emotional trader, you will lose your
money.
Rule 12: …..
PLAYBOOK
TRADING TENETS
 You need to constantly analyze the balance of power between buyers and sellers and bet on the
winning group
 Regardless of the environment, technical or fundamental analysis, the top priority will always be
risk management
 You need sufficient self-discipline to follow your trading plan, to avoid getting overexcited or
depressed in the markets, and to resist the temptation to make emotional decisions
 Being good at trading is the result of mastering the skills of trading and recognizing the
fundamentals of a good trade
 Trade by focusing on the process not the outcome
TRADING FRAMEWORK
 Stock must gap up or down at least _% but not more than _%

 Stock must have some type of news catalyst
 Stock’s Volume should be greater than _______ shares of pre-market volume
 Stock’s Float should have more than __ million shares
 Stock’s Average True Range should be between ___ & ___.
 Stock’s Short Interest % should not be greater than __%
 Stock’s Pre-market trading should be more than normal
 Will trade the following exchanges
 Stock’s Relative Volume should be above __%
TRADING STRATEGIES
 ____ Setup
o Time:
o Chart:
o Indicators:
o Confirmations:
o Entry:
o Stop Loss:
JOURNAL
MECHANICAL & TECHNICAL ANALYSIS


PSYCHOLOGICAL ANALYSIS

STATISTICAL ANALYSIS

TRADE PLAN
MONEY AND RISK MANAGEMENT PLAN
 I will risk $__ or _% of my account per trade

 I am allowed to scale up my $ risk per trade after being profitable for ___ weeks.
 My daily profit target is $__ or __% of my account
o I have platform Risk controls enabled: Yes/No
 My daily max loss is $__ or __% of my account
 My Max 30 days loss is $__ or __% of my account
 I am allowed a max of __ trades per day
 My break-even win accuracy is __%
 I stop trading or wind down when the clock reads ___
STRATEGIES AND PATTERNS
 I do not trade the first __ minutes after the open

 I trade stocks with at least __ million share float
 I prefer to trade stocks with a price range of $___ to $___
TRADE MANAGEMENT
 I take __% of my position at on each partial while exiting

 I move my stop to break-even after taking my first partial: Yes/No
 I seek a realized return of __ times the amount I risk
 My stop losses are Mental/Hard
ACCOUNTABILITY
 Following my plan is important since:

 I can do this because:
 When I feel like deviating from my plan I will:
 When I break a rule or violate my trading plan, the consequence will be:
GOALS (Specific, Measurable, Attainable, Relevant, Time-Based)
YEARLY

QUARTER 1
January

February

March

QUARTER 2
April

May

June

QUARTER 3
July

August

September

QUARTER 4
October

November

December

ACTION PLAN
 Trading station will consist of:

 I will join a trading community by
 I will complete an educational plan by
 I will research tax planners who are knowledge in day traders by
 I will choose a broker by
 I will search for a trading buddy by
 I will have an initial trading routine by
Sample Set – Trading
 Sample Set 1 (Sim) – I will trade all strategies to determine what I see best and what feels
comfortable and smooth to trade.
EARNINGS DISTRIBUTION PLAN
 Distribution of end of the week earnings will follow the flow chart below
o Tax Account coverage
o Fixed Costs
o Retirement Account
o Re-Invest in the Business (i.e. equipment upgrade, tools, resources)
o Owner distribution
 The following percentages will be adhered to when fulfilling the above requirements
o 15% - Tax Account
o 10% - Retirement Account
o 55% - Re-investment in Business
o 15% - Owner distribution

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Trading Business Plan for ___________Enterprises at: xx Month 20xx

TRADING MISSION STATEMENT

TRADING BUSINESS TIMELINE

o Month Day, Year – Decided to pursue Day Trading as a profession.

MECHANICAL & TECHNICAL SKILLS

Rule 1: Day Trading is not a strategy to get rich quickly

Rule 12: …..

 Stock must gap up or down at least _% but not more than _%

MECHANICAL & TECHNICAL ANALYSIS

MONEY AND RISK MANAGEMENT PLAN

 I will risk $__ or _% of my account per trade

STRATEGIES AND PATTERNS

 I do not trade the first __ minutes after the open

 I take __% of my position at on each partial while exiting

 Following my plan is important since:

GOALS (Specific, Measurable, Attainable, Relevant, Time-Based)

 Trading station will consist of:

Sample Set – Trading

EARNINGS DISTRIBUTION PLAN

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