Business

Many traders have taken their hobby-like pursuit of amateur trading to the next level. They've decided to go full time (or part time) and start share trading professionally. If you undertake share trading at any level, everything discussed below should be very relevant to you. If you take your money seriously, a trading plan is always a good idea as well as keeping good records and considering taxation implications.

Business Plan: Share Trading Plan

As a professional trader, you should treat share trading as a professional business. If your are actively trading stocks, forex, or CFD’s it is of vital importance for you to treat your trading activities as a business.

We all know Bill Gates started the Microsoft Corporation which is listed on the NASDAQ stock exchange under stock code MSFT. But the question is... if you had the cash to invest in a company in 1978, would you invest your money on this team?

Dot Coms are having their second boom according to this CNN article. Of course - this is an article for INVESTORS so in the article it notes that "... you still have to follow the basic rules of sound investing. Don't buy a "story" stock if you don't understand the story. Don't invest just because you heard a pick on TV--or, dare we say, read it in a magazine. Look for profits, sound financials, and reasonable prospects for growth. Pay attention to valuation. Make sure you know the bear case--the arguments against buying the stock. And most important of all, devote only a small portion of the cash you're investing to a hot area like Internet stocks." We're traders (although a portion of our portfolio is in investment mode, this blog is about trading), so we'll ignore a lot of those maxims and place our trust in technical indicators and charting.