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Trading Plan for your trading/investing business plan as road map for your goal

Discussion in 'Shares' started by wdongli, 19th Jul, 2011.

  1. wdongli

    wdongli Well-Known Member

    31st Mar, 2010
    Plan for your trading/investing business plan

    Before you put the words on the paper for your business plan, you need a plan to make your business plan. The reason is the same as that why you need a business plan.

    Goal of plan for business plan

    Finish the first draft of a sensible and practical business plan as quick as possible

    Needed and generated things from business plan

    • basic or better profound knowledge about business
    • solid business idea and prospect in mind with the clear procedures to get the goals.

    Procedure to get the goal

    1. Learn the process and procedure in steps to write business plan
    2. Extract information for this step from the knowledge about the business to put into the business plan
    3. finish the draft for this step, which is the goal of this step
    4. repeat the procedure until the first draft of my business plan finished.

    Guidelines to plan for plan

    1. There will have problems which need to fixed. Focus on the problem for solution.

    2. Be sure goal driving for all things around the sub-goal you are working on and ignore trivial many to move forward.

    3. Be sure the job done in steps. Knowledge is good but only powerful if it is used. Don't be paralyzed by excess good things.

    4. The journey starts from the first step and if you could move forward without the risk to miss your final goal, ignore your feeling and go forward.

    Change behaviors to be whom we should be

    All are to be organized, disciplined, self-reliant, and analytical. Planing for goals would be the way to change our behaviors to be so. This plan for plan is to reinforce the desired behaviors/

    Once you get the first draft, you could zoom in for details about the operational knowledge and requirement for goals and zoom out for strategic view, the knowledge how to get better strategy, and pick up the chances and avoid the unaffordable risks! It would make your behaviors to be organized, disciplined, self-reliant, and analytical.

    It is not a matter if you are traders, investors, or owners of little Casino houses, since your behaviors would guide you to be organized, disciplined, self reliant, and analytical. It is a self-drilling and self-realization process.

    Your business only could grow if you grow healthily!
    Last edited by a moderator: 19th Jul, 2011
  2. wdongli

    wdongli Well-Known Member

    31st Mar, 2010
    Purposes and plan for survival

    We all have desires to make money in the market. 80% of us would get nothing and have to go back where they come from as warriors. They don't have business sense or are not lucky.

    We need to be businesslike market players and think and act as businesspeople. Businesslike people in the market have two extremely important things:

    1. The clearest sense of purpose
    2. A solid plan for survival

    The business plan and its procedures would make the plan for survival more effective and efficient for a good mind. Yes it is logic that we can get chances later if we could be survival now.

    A turning point in perception

    So act with purposes and solid plan of survival are the acid test and corner stone about whom you are. Whom you are would set your behaviors. You behaviors decide your market playing consequences.

    All of books about business plan tell us so. Unfortunately I never think I need to read about business plan before even I have struggled in the market for a decade. It is not about stupidity and IQ but disposition.

    Something in our disposition just stop us to star at these two things and then we are distracted from them. So we tend to run in the market emotionally.

    Which type of the business plan to be used

    Types are servants for the purpose of the business plan.

    1. Investment and trading business

    We need to let us feel confident that we could make the money safely, we could make more money safely, and then we could persuade ourselves put ourselves into our own business.

    What are the initial capital, projected revenue and income growth, and other factors that make the business a good financial risk? Investors(we) want to be sure that their investment will be worthwhile. Do you feel worthwhile to invest on yourself and your market playing business?

    We’ll want to put our best foot forward always, emphasizing the plan of survival with the effort to get the fail-safe profit. What are the practical ways for asset allocation, diversified portfolio structure , value identification, realization of margin of safety, profit margins, and potential capital growth.

    2. Plan to strengthen operations

    Our plan will be used as an internal tool to help us grow our business in fail-safe.

    So the business plan should lead our effort to structure for identify the chances in the market by service the herd by sell what they desperately want to lock the profit and buy what they desperately want to burn on the fire to control the cost. How to be sure the margin of safety for what we buy? How the services could be delivered when the herd mostly needs? How be sure no loss in the worst time? How to be sure the operation procedure would be sure the chance are fail safe?

    That way, we should fully outline and measure the risks to lose in the view of business as a whole, the success and growth of our business, beyond the bottom line, the revenue would be bigger than all of costs.

    3. It is the process to plan for these two main purposes

    How to put them together and realize a business plan which is viable strategically and tactically based on clear self and environment awareness?

    Business needs the profit for its self-reliance and development. Do you understand the profit is the revenue deducts all of cost, overlay, and expenses to keep the things as before exactly? Don't forget your cost cover your salary as the employee of your business!

    Be sure your work on the draft of business plan will make you act much more like a businesslike investor! Naturally if we could go all of the way to get the plan, follow the plan, and keep to plan to achieve our goals at different time the market allowed we would behave as businesslike investors!

    Behaving as businesslike investors is a goal we could not afford to fail!
    Last edited by a moderator: 19th Jul, 2011
  3. wdongli

    wdongli Well-Known Member

    31st Mar, 2010
    Business plan is a road map

    A road map in context and financial terms

    A business plan is a road map of a business. It is draft both in context and in financial terms.

    The context is the circumstances of the milestones or events in the market, and operations based on the analysis and judgment to use resource to move the business toward its direct and indirect goals. These goals should be setup with clear financial terms such as the future cash flow with the bottom line goal, no loss!

    For example when to buy? why to buy? what to buy? how to buy? who to buy? Does the buying service for the direct goals with rational cost for revenue? Are you sure this buying has big enough discount and will bring in profit to strengthen your bottom line? If not why do you buy?

    Direct and indirect goals

    The indirect goals are ones for long term based on the business vision and direction in remote future. There are steps in the path to achieve the indirect goals. Indirect goals are strategic ones, which are those for long term. Each step of the path for the indirect goals has its own goals or milestones. These milestones represent necessary preparation to approach the indirect goals.

    All of goals have the financial meaning and contribution to the indirect goals and have direct and immediate impact to business performance, which should add more resources by take defined profit with the risk of affordable loss and should not cause loss in the view of business as a whole.

    What's you current direct goal? I try to consolidate after a series mistake have been made. What I did damage my indirect goal since I could not get the job done for my direct goals. Why do you believe it is your fault? I don't understand market is a war place and then never think all of contexts and possible consequences in finance. I bought for direct losses. I bought for feeling not value and the discount. I hold for my indirect goal but fail to get my direct goal and could not get anything to be sure my bottom line goal.

    What's your bottom line goal? No loss to my portfolio. What is your direct goal: buying for immediate paper profit and high probable good black swans!

    Analysis of performance based on the road map

    Once the business plan is available it can be used to provide analysis of business operations and performances in context and financial terms such as the problems in operation, and what measures to be take to achieve the direct goals and move toward to the indirect goal. The failure and achievement of milestones at each steps of business progress are the triggers for business owner to take action correspondingly.

    In the case if external resources are needed for the business goals, the business plan would serves as a means of communication with others. It can be used as preparation for the financial needs, resources allocation for implement the plan, and guideline to operate for the desired and achievable business goals.

    In the market, there are full of chances or risks. Sometimes or perhaps in most of times we focus on something or we are deluded or illuded by our false images of the market reality. The business plan is the place to get the measures to deal with the gap between us and the reality and force us to find new measures for protect our direct goals, indirect goals, and bottom line goals which should not dare to challenge.

    Be sure what you want from your analysis. Don't analyze how bad or good of environment only. It is the part of job we should do for our goals but it just could solve some problems about the macro context and could not be fully trusted. What's the micro context? The core value of a business which could sustain the worst storm in the economy and market. When you run your market playing as a business, and analyze your own business as a business people, you would get better and better to get the core value of your shares.

    Have to say a lot of mistakes are caused since "I don't know the core value of business in general."

    Enable to assemble all of component for the business

    Writing a business plan is a procedure to enable us to assemble all of the components, such as market events, value change, steps to approach the indirect goal, of the business, together and document them. This process will ensure that we’ve considered the major aspects of circumstances, expenses, and revenue potential of our business, as well as the resources and needs if it will have.

    It will also help us determine the long-term outlook since we have to figure out the indirect goal. This long term view would help us to decide whether this is an endeavor would be worthwhile. After a business plan written, it can serve as a guide for business’s progress.

    We don't know the market enough or may be never. We don't know enough what our business is and how to protect it in emergence, is fatal. There are too many things we seemingly know but we don't know or don't know accurately. There are scope for what we can to and we cannot do. We need something as the sand table simulation or training for our business.

    All of business, if want to have the future, has to find the chances for survival and revival and has to put the constant efforts to build the moan around their castles. All are about how to use the limited resources to get the biggest possible and probable results for our direct and indirect goals.

    Don't forget and never forget: We just could provide services to reduce the pains and give help for anyone to play in the music. We could not let anything we get become falling knife. We have to do our exercise everyday for the time to service the market warrior best!

    Business progress, constant review, and updates

    With constant review and updates of the plan, it will give a solid basis on which to make decisions, implement changes, and take action. As a business progresses, more facts can be continued to learn that can be implemented into the business plan.

    So that we move forward based on what we have achieved in a highly organized operation. We analyze the information and strike to get our direct goals so that we could have confidence to realize our indirect goals. We act based on the required behaviors not on the feeling in the market. The business plan makes us have more chances to win in the market!

    Please note: business to its owners are not a playground for euphoria life but a challenge and responsibility. No too many retail market players dare to call their trading or investing as their business. They want some quick money but they don't want to put them into it. They love money but don't want to labor for the money.

    Organization, discipline, self-reliance for all you do, and analysis, need the commitment to the goals and strategy and plan for the goals. Behavior of warriors in war could be changed by the exercises in the war game. We could change too in the market. It costs too much by trials with the real money. Why don't you set up a game platform based on the road map?

    Few have business plan. People who has business plan, just want to get money for their dream or copy from somewhere without desire to understand, would fail their business and their plan. We have to use our own money for our dreams. We have to make more when we chase after our dream in full time. We need to play the war game again and again for a best hit out of our direct goals and bottom line goals!

    We need to make the plan, modify the plan and implement the plan, for the one after another goals. Never and ever allow your business back to its last goal or worse it has to close the door! Let the business plan help us to change our behavior from that as gamblers to that of the owner of Casino service business in the market. Don't put any chip onto the table, which is worthless and useless.

    No one would pay you for your tears in the market!

    Accident perhaps fatal one would be inevitable in war place if no exercise in war game to provide necessary services with road map!

    Business plan for market playing is not to twist the words but force us think about all in context and financial terms for survival and revival!

    How to be safe and profitable in the war place?

    IT bust and the pains from it forced me start thinking how to update my mind. The euphoria and greed after GFC about myself forced me to know self and environment together and let me realize that I have to change my behaviors in a trust way.

    This could not be painless and mistake free path. I need the plan, the business plan, the exercises before I take actions with the confidence without losing my capital, paper profit, and my bases in the war place!

    Have to say thanks to Tropo for his article about the winning characteristics, to be organized, disciplined, self-reliant, and analytical! It has a triggering effects to me for changing my behaviors!

    I have to win in this war to change my behavior!
    Last edited by a moderator: 20th Jul, 2011
  4. wdongli

    wdongli Well-Known Member

    31st Mar, 2010
    What need to be considered in your business plan?

    Somethings we have to know usually are ignored let alone to catch them for acceptable consequences at least. We could not get everything into our minds otherwise we would insane. Who can sustain so much load mentally? So it is time just focus on what I should consider in my business plan. No magic and we would find we know them even we don't think them in the market.

    Vision and Direction

    Your vision is critical for your business. You could not run blindly anywhere at anytime. Your business plan is the blueprint for your business. Vision and direction have the most important part in this blue print and your business. Do you know why you run hopeless or maniacally in the market? You could not see what will come in more than a day, week, month, and so one. You are shocked by the unprecedented matters along the way!

    Someones see market as the place for quick and easy money. They are directed to the place they assume would let them have the quick money. You are greedy and you are directed to the place you assumed the party would last for your killing. All have some direct or indirect linkage to your vision about your business in the market. Where will your business go in years ahead? How realistic are your vision? Could you get a realistic and promising vision?

    It’s a blueprint that takes the resources with which you’re starting, adds the experience of the key players in the market, such as Warren Buffett, George Soros, and those who you appreciate, and the strategy for making the business work, and filters all of that through the financial realities of the business. Hard to do all right without vision and direction without planning. However if done right, it’s a way to test the business, exercise in the war game to provide the desperate needed services with good enough income to extend your service business!

    What do you want and what could you expect for more?

    Keeping on Course

    You could not go smoothly if you just use your bare eye in the market or rampant wild valley of death. You need a compass plus some necessary sophisticated or simple tools. Business plan can act as your compass in this war place, market.

    What's function of a compass to you? keeping you on the path that you originally set for your business. All too often, businesses get sidetracked from their core missions, leading to a slowdown in growth, facing the fate to close the door, and selling on fire to reckon itself because resources are diverted to other efforts or you forget you have responsibility to keep it in course.

    Your business plan can serve to remind you of exactly how your goals should be focused. I have got lost since April since I don't have this compass even I struggle to get my indirect goal. I don't have the sense I need to reinforce my efforts to get my direct goal and focus on it.

    In good time market has too many lovely dogs wiggling the tails to attract you as though they could fly. In bad time there are too many wing broken swans which let you feel painful and wonder how the life could be dealt with such as that!

    Behave as you should and stay in your way for promising future you need the plan! Slow movement in bad time is not problem but close the business is terrible.

    Seriously I want to get the dirty-cheapness always but times by times I get the dreadful dogs in hand. Always want to follow the true value investing way but always find excuses to focus on other matters. When astray away my course I swear to focus on it but sooner than later I move me into another jungles and desperately struggle for light.

    I need to come back to "The intelligent investors" and "Security Analysis." They are the bibles for the people who have got great business in the market. The business plan would give me the compass and identify the tasks for direct goals and indirect goals. It should let me do things in priority!
    Last edited by a moderator: 20th Jul, 2011