START TRADING AS A BUSINESS

If you are currently trading for a living or if you are expanding your knowledge
to learn how to trade for a living, remember that this is a business. You
need to treat it like a business. Therefore, some considerations need to be
made, for example, forming a corporation in order to deduct such expenses
as your computer equipment, quote feed, DSL (digital subscriber line), office
rent, travel to investment conferences, and continued education seminars.
What matters most to every trader and investor is creating a positive
cash flow. You wouldn’t want to finally start learning to make money consistently
in the market and find out that you cannot take any expense deductions.
You should seek advice from a tax specialist so that you can take
advantage of all regular and necessary expenses as business deductions
and save thousands of dollars each year.


Let’s add up the examples I mentioned: Suppose your quote feed is
$200 per month and your DSL is $40 per month. Renting a small one-room
office could run $500 to $700 per month. Then there are equipment expenses,
such as your desktop computers, a laptop for travel, monitors and
printers and ink cartridges and general office supplies to purchase and upgrade
from time to time, say $2,000. Attending an investment conference
could mean $700 roundtrip airfare, plus $250 per night for hotel and meals.
If you have business entertaining expenses and went to at least two conferences
per year, you could be talking as little as $5,000 to as much as
$25,000 in actual business expenses that can be deducted if you are running

trading as a business.


If you are a first-time smaller investor and decide that trading for a living
is something you have the financial resources, time, and emotional
makeup to do, what business plan do you have in place to protect the
money you make in the market? Where will you put your profits as a shortterm
trader? Some traders have had many problems with this issue; it is

similar to the old expression of “Robbing Peter to pay Paul.” After all, who wants to make money in a buy-and-hold long-term position strategy only to
give it back day trading, and vice versa.



I am going to show you a trading method based on combining candle
charts, to help identify shifts in momentum, and pivot point analysis. I will
teach you very succinct rules, which is what I have taught to professional
traders on the floor of the exchanges and introduced to thousands of private
investors, including other leading trading educators who now effectively
teach my trading methods. I will walk you through deciding what
investment vehicles are available, when and how to decide which investment
vehicle would better suit a trader under various market conditions,
and how to develop a trading strategy based on the specific trading triggers.