The Business of Trading
Trading for your own account is a business like any other. If you are reading this book as part of your job, this part won’t matter much to you. If you are reading it because you want to trade on your own, it might be more important than everything else. Inexperienced traders are often their own worst enemies, and paying attention to the business aspects is the key to sticking around long enough to become an experienced trader.
Chapter 17 looks at trade planning and money management, two keys to success. Chapter 18 covers taxes, a common area of concern, while Chapter 19 discusses performance evaluation. Chapter 20 is all about the emotional pitfalls that take down many traders. Successful trading is as much a mental game as anything. Automation removes some of the human propensity to screw things up, but not all of it.
Armed with this information, you’ll be in a better position to make effective trades—and to skip trading entirely if it’s not right for you.