Do you need to have a business plan while trading or investing ?

by David Jenyns on September 25, 2011

Question by gameboyxp20: Do you need to have a business plan while trading or investing ?

Best answer:

Answer by bobby m
Not a “traditional” business plan like you’d have for a long term business, but there are some points you should ponder before jumping in the pits.

You need to decide whether you’re investing short term or long term. If you’re doing short term; make sure that your trade profits offset your transaction fees.

You need to do your due diligence. Investigate the companies you’re thinking of investing in. Don’t rely on just your brokers advice.

If you’re going long term, I’d still say the safest bet is a CD. Barring a depression and our govt going belly up (which should happen around noon on wed next week) your investment is a sure bet.

Give your answer to this question below!

jeff410 September 25, 2011 at 11:41 am

If there is no one else involved you dont need a business plan. Business plans are made for the benefit of other people and to get financing. For investing you need a strategy.

Eddy T September 25, 2011 at 12:29 pm

Both need good strategies, plannings and working capital.
For trading, normally on a short term basis, you must be actively involved in the market. Act fast, buy low on those speculative stocks and sell high. If you need to hold, you must have working capital to take up those shares.
For investing, you must have capital to buy good dividend bearing stocks on a long term basis.

d10 September 25, 2011 at 12:30 pm

yes, you do because if you don’t have then what you do is speculation..

Common Sense September 25, 2011 at 12:47 pm

JEFF410 is so wrong I can’t begin to say how much.

A “business plan” for an individual is just as important as it is for “others”. It’s a road map, you develop, that should be followed so you stay on coarse and have a way to measure yourself. NO PROFESSIONAL WORKS WITHOUT A BUSINESS PLAN (not a least very good ones).

With trading especially, one can get caught up in the “emotions”…… the main saving grace of a plan is you, speaking to you, from a more relaxed, unemotional place. Decisions made from reason…. not the market noise.

For investing….. an “asset allocation” is a business plan. You can go much further than that also.

I don’t have the time right now (my business plan calls for me to be doing some pre-market planning right now). But working hard in trading, planning, etc. will help make you successful.

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