Warning! – The Trading Purist Will Hate This! But if you like it, feel free to use my resources!
Full disclosure. I am in no way a forex trading purist! As a successful Soloprenuer and small business owner over 50 years old, I subscribe to Tim Ferriss’s “The Four Hour Workweek” school of business.
For those of you unfamiliar with his work, Tim advocates "outsourcing" the tasks in your business or your life that you can't do or don't want to do…leaving time to follow your bliss; your passion. In short, I apply those principles to my business, and now to my forex trading. Instead of "being" just a trader, I now run my trading business. Outsourcing, hiring and delegating many tasks to my “team”.
Rule-Learn to trade your own system and do it all yourself, you bum!
I’m breaking the hell out of that rule! As an analogy, several years ago I was part owner of a small restaurant. I wasn’t a chef/cook and wasn’t passionate about the process of running a restaurant. BUT I loved to eat and liked the idea of being an owner. My skill was on the business side. As CEO, it was my job to identify, recruit, and assemble a “team” who was knowledgeable and passionate about what they do. I can’t say that all my ventures were successful, but that one was! Again..I’m NOT a pursit. I actually use virtual assistants, signal services and trade-copiers as a business and it’s working for me! What you may see as a signal service or system provider; I see them as hired consultants, partner or part-time employees.
I view Trading as a business is like being a “CEO” of your own hedge fund business. Like any other business, you will need to factor in revenue, expenses, and resources.
My Trading “Business Mindset”
- I don’t have to know or do everything in my business to be successful (Know Yourself!)
- I “Hire” a team to do what I can’t do or don’t want to do.
- I Take 100% Responsibility For Results
Below I will share my mindset, business plan, ideas and attached spreadsheet for you to use as you see fit. The sample “business” plan’s goal is to turn a $5000 investment into a $100,000 income. The bottom-line, it’s working for me and as with anything, it may not work for everyone.
NOTE -I need approx 8% a month for this project. So far, the only system I use for this project is a London Breakout with conservative confirmation filters. It's NOT very active and boring. When I'm bored, I'm not disciplined and I tend to screw up the best of systems. I'm in the USA and the worst thing in the world is staying up till 2 or 3 am for NO trade set-up! That's why I have a team.
Money/Business Management - I'm Targeting 100 pips per month
I’m breaking the hell out of the conventional Money Management Rules. With the simple GBPUSD London Breakout Systems, I set my expectations in dollars, not pips. I work towards my 100% annual objective by aiming for 8% a month non-compounding (until the balance doubles) ie $80 per month off of each $1000 account has been achievable. I START EACH MONTH WITH $1000 (or $5000) BALANCE. Simply put - $1 pip per $1000 traded until account doubles. I take profit aside monthly or top off in case of a loss. Breaking the rules! Play with this spreadsheet
Milestone 1: Growing my trading account from $5000 to $100,000 within 60 months. This is the target of the business.
Milestone 2: Withdrawing $100,000 of annual income or more a year after Milestone 1 is reached.
Projection: I expect to reach my goal of $100,000 starting with $5,000 in 5 years by growing my account an average of 6% per month compounded/8% non-compounded.
General Notes & Considerations:
SWOT Analysis – Most of us in the business world has heard of or used the good ole SWOT. Strengths, Weaknesses, Opportunities and Threats assessments. I have major weaknesses to go it alone without my “team”. Spending the time and effort to grow a small account requires discipline I just don’t have. Since my core strategy is the London Breakout type, I just don’t have the emotional competency to work hours a month to grow my $5000 by $300. Just not worth it.
I “hire” people who can provide me systems, market outlook, set-ups and commentary. For this I look for proven traders, systems, signals and services that consistently earn over 10% per month (tracked & verified) with acceptable money management rules for my risk tolerance.
Me - Owner - CEO - All financial decisions are made by me. I set-up and manage my accounts. It’s my responsibility to set -up money management, and other risk parameters. I NEVER follow a system or trader I don’t understand. NOTE: I DON’T USE SOCIAL TRADING PLATFORMS!
Operations Team/Trade Assistant/Trade Copy Asst - I have one Virtual Assistant to handle the tasks that I can’t or won’t. I reside in the United States. Currently, I follow the simple GBPUSD London breakout set-ups and run it through a couple of confirmation rules. call me via skype to wake me and to inform me of a set-up during that session. So yes, my “Operations Team” consists of only one part-time person.
Traders/Systems - These are the services I “hire”. I consider this the process of interviewing, vetting and hiring my trading department. They provide me with market analysis, outlook, Signals and/or trades I can copy. I only “hire” traders that fit my criteria (time, effort and goals). Note: I only employ systems that I understand and COULD execute myself if I put in the time and effort..
More to come
Full disclosure. I am in no way a forex trading purist! As a successful Soloprenuer and small business owner over 50 years old, I subscribe to Tim Ferriss’s “The Four Hour Workweek” school of business.
For those of you unfamiliar with his work, Tim advocates "outsourcing" the tasks in your business or your life that you can't do or don't want to do…leaving time to follow your bliss; your passion. In short, I apply those principles to my business, and now to my forex trading. Instead of "being" just a trader, I now run my trading business. Outsourcing, hiring and delegating many tasks to my “team”.
Rule-Learn to trade your own system and do it all yourself, you bum!
I’m breaking the hell out of that rule! As an analogy, several years ago I was part owner of a small restaurant. I wasn’t a chef/cook and wasn’t passionate about the process of running a restaurant. BUT I loved to eat and liked the idea of being an owner. My skill was on the business side. As CEO, it was my job to identify, recruit, and assemble a “team” who was knowledgeable and passionate about what they do. I can’t say that all my ventures were successful, but that one was! Again..I’m NOT a pursit. I actually use virtual assistants, signal services and trade-copiers as a business and it’s working for me! What you may see as a signal service or system provider; I see them as hired consultants, partner or part-time employees.
I view Trading as a business is like being a “CEO” of your own hedge fund business. Like any other business, you will need to factor in revenue, expenses, and resources.
My Trading “Business Mindset”
- I don’t have to know or do everything in my business to be successful (Know Yourself!)
- I “Hire” a team to do what I can’t do or don’t want to do.
- I Take 100% Responsibility For Results
Below I will share my mindset, business plan, ideas and attached spreadsheet for you to use as you see fit. The sample “business” plan’s goal is to turn a $5000 investment into a $100,000 income. The bottom-line, it’s working for me and as with anything, it may not work for everyone.
Attached File(s)
5yrRetire-spreadsheet.xls
254 KB
|
116 downloads
NOTE -I need approx 8% a month for this project. So far, the only system I use for this project is a London Breakout with conservative confirmation filters. It's NOT very active and boring. When I'm bored, I'm not disciplined and I tend to screw up the best of systems. I'm in the USA and the worst thing in the world is staying up till 2 or 3 am for NO trade set-up! That's why I have a team.
Money/Business Management - I'm Targeting 100 pips per month
I’m breaking the hell out of the conventional Money Management Rules. With the simple GBPUSD London Breakout Systems, I set my expectations in dollars, not pips. I work towards my 100% annual objective by aiming for 8% a month non-compounding (until the balance doubles) ie $80 per month off of each $1000 account has been achievable. I START EACH MONTH WITH $1000 (or $5000) BALANCE. Simply put - $1 pip per $1000 traded until account doubles. I take profit aside monthly or top off in case of a loss. Breaking the rules! Play with this spreadsheet
Milestones & Projections
There are only two milestones expect over the course of my Project “Business” Plan.Milestone 1: Growing my trading account from $5000 to $100,000 within 60 months. This is the target of the business.
Milestone 2: Withdrawing $100,000 of annual income or more a year after Milestone 1 is reached.
Projection: I expect to reach my goal of $100,000 starting with $5,000 in 5 years by growing my account an average of 6% per month compounded/8% non-compounded.
General Notes & Considerations:
SWOT Analysis – Most of us in the business world has heard of or used the good ole SWOT. Strengths, Weaknesses, Opportunities and Threats assessments. I have major weaknesses to go it alone without my “team”. Spending the time and effort to grow a small account requires discipline I just don’t have. Since my core strategy is the London Breakout type, I just don’t have the emotional competency to work hours a month to grow my $5000 by $300. Just not worth it.
I “hire” people who can provide me systems, market outlook, set-ups and commentary. For this I look for proven traders, systems, signals and services that consistently earn over 10% per month (tracked & verified) with acceptable money management rules for my risk tolerance.
A sample Team Structure- (Actually it’s only me and an Asst. playing all roles!)
Attached Image
Operations Team/Trade Assistant/Trade Copy Asst - I have one Virtual Assistant to handle the tasks that I can’t or won’t. I reside in the United States. Currently, I follow the simple GBPUSD London breakout set-ups and run it through a couple of confirmation rules. call me via skype to wake me and to inform me of a set-up during that session. So yes, my “Operations Team” consists of only one part-time person.
Traders/Systems - These are the services I “hire”. I consider this the process of interviewing, vetting and hiring my trading department. They provide me with market analysis, outlook, Signals and/or trades I can copy. I only “hire” traders that fit my criteria (time, effort and goals). Note: I only employ systems that I understand and COULD execute myself if I put in the time and effort..
More to come