How To Start A Successful Trading Business
When you start trading, you need to go into it like you would if you were getting ready to start a business.
Too often, I see new ‘traders’ who open their account and before ever mapping out any goals, a strategy, a trading plan, or anything, they’re already putting money into the markets…
…and for me, this isn’t trading, this is gambling.
So in this article, I’m going to walk you through how you can start your own successful trading business.
So let’s dive in!
Starting A Trading Business: Step 1 – Charting Software
1. First, as a technical trader (like me) you MUST have good charting software. Charting software is your window into the world of stocks. As a technical trader, we rely on charts and indicators to find high-probability setups. Charting software with good indicators is an essential first step in your path to being a successful trader.
I personally use (and highly recommend) TradingView. It is a paid service and for what I do, I use the Pro Version which currently costs $14.95 per month but it is well worth it.
Remember, starting your own successful trading business requires a modest investment into the ‘infrastructure’ of your business. You can get signed up with TradingView here: https://bit.ly/2XMCXxY
Once you’ve got your account set up with TradingView, I would highly suggest you check out a video I recorded on how to set up your charts to look like mine. I go through all the indicators (and associated settings) that I use to help make my trading decisions: https://bit.ly/2zkWe00
Step 2 – Finding The Right Broker
2. Now on to step 2, finding the right broker for you! Finding the right broker can be a tricky process, especially if you live outside of the United States.
I recently recorded a short video where I weighed all the pros and cons of different brokers when opening a new options account. I think it’s a process anyone can utilize for their own personal hunt for the best trading broker. Check out the video here: https://youtu.be/4MoU-UiDAi4
If you’re trading stocks and options, I highly recommend tastyworks if it’s available where you live. For a step by step tutorial on how to set up your tastyworks account, check out my video here: https://youtu.be/4MoU-UiDAi4
Starting A Trading Business: Step 3 – Trading Strategy
3. Next, now that you have your charting software and broker, every trader needs a good trading strategy. Similar to the broker, one size does not fit all. Why? Well, there are a LOT of variables that can go into developing your trading strategy. For example, are you trading for Income or Growth or the amount you have to trade with? All of these things play a big factor in the type of strategy you want to, can, or should trade. Right now, I’m trading two strategies. My core strategies right now are, The PowerX Strategy and The Wheel.
I’ve written a book on The PowerX Strategy, that I’m proud to say is an Amazon Bestseller. You can get a hardback copy for free if you just cover $4.95 shipping and handling: https://bit.ly/2wMQ7zW
The other strategy I’m actively trading is “The Wheel.” This is a great strategy for trading for income. If you want to learn more about “The Wheel” strategy you can check it out here: https://youtu.be/e3Tudu0f2Kc
I’ve recorded a 25-minute walkthrough of my daily trading routine (using The PowerX Strategy & my proprietary software, The PowerX Optimizer) that you can watch on-demand here: https://bit.ly/3dJvLIg
Step 4 – Trading Computer
4. The next thing to consider when getting your trading business set up is you will need a computer. Almost all brokers and trading software are cloud-based, so you don’t need a seriously advanced computer anymore.
Most computers that are less than 3 years old should be more than powerful enough to run even the most system-intensive trading platform. If you’d like to learn more about our favorite trading computer setup, please watch our video called “What’s The Best Trading Computer”: https://youtu.be/-R5DTolRliU
Step 5 – Additional Monitors
5. Now, for your home set up, I think at least one additional monitor is a must. The good news is that if you have a laptop, you already have one monitor! If you travel a lot (like me) I would highly recommend the ASUS MB169B+ 15.6″ Full HD 1920×1080 IPS USB Portable Monitor found here on Amazon: https://amzn.to/30kGZiD
They’re lightweight and work great on the road or at home. It fits easily in my backpack (because I HATE checking bags) and doesn’t add much weight.
Step 6 – Trading Newsletters
6. Next, over my morning coffee, I like to read a few different trading newsletters. I have three primary newsletters right now where I get most of my market-related news. Most of the talking heads on TV are absolutely terrible for getting non-biased information anymore. No matter what station, everything you hear is coming through some sort of filter. For this reason, I stick with these three newsletters that I’ve found to provide good info:
Morning Brew: https://bit.ly/3f2bjCM
Seeking Alpha’s Wall Street Breakfast: https://bit.ly/3cKamgM
The Rockwell Trading Newsletter: https://bit.ly/2FHy02O
I recorded a short video where I walk you through how I set myself up for success with my morning routine. Check it out here: https://youtu.be/h_8kbZ9TfII
Now that you have all of the pieces in place to start your trading business off on the right foot, in my next article I’m going to go through something that at first, I’m sure you will cringe: Trading Taxes
But I assure you if you’re proactive and take the time to get set up and structured properly, taxes aren’t actually as bad as you’d think for full-time traders.
I hope this has helped and you’ve enjoyed it. I’ve created a PDF that has all the resources from this article. You can get access to it + all of the show notes from all of my live “Coffee With Markus” sessions by creating a free account here: https://www.rockwelltrading.com/coffee
Do you have a video on tax strategies and entity set-up?
Thank you for your comment.
Stay tuned for next Tuesday’s article on “Trading Taxes Explained”
Are there any trading journals available to keep track of different stock recommendations along with buy and sell targets etc.? Thanks
Hi Steven, here’s a video Markus did on trading logs that may be helpful to you: https://www.youtube.com/watch?v=Jnbr7-kCEwQ