Lance Beggs Check List for Traders (Note on copyright: This is a free download from his website)
1 Understand why you want to trade.
• What do you want out of life?
• How does trading fit into this life plan?
• What are your beliefs about the markets?
• What are your beliefs about your ability to trade the markets?
2 Are you up to the task of becoming a trader?
• What personal strengths will you bring to your trading?
• What personal weaknesses will impact your efforts?
• What is your attitude to risk?
• How motivated are you to achieve success?
• What are the consequences of failure, and are you prepared to face this possibility?
3 Do you wish to trade part-time or full-time?
• Why?
• If full-time, how do you plan to make the transition from working for a living to trading for a living?
• When will you quit work?
• Will you phase it out?
• How will you support yourself or your family during this period?
• What is your fallback plan?
4 What timeframe do you wish to trade?
• How much time do you have to devote to trading?
• Would you prefer day trading, swing trading or position trading?
5 What are your goals from trading?
• What return on investment are you seeking?
• Daily, weekly, monthly or annual?
• Why?
• Consider whether that return is realistic?
• Are you trading for cash flow or capital growth?
• How long are you expecting it to take for you to learn to trade and achieve this result?
6 Review your financial situation.
• What initial capital will you have available to commence your trading?
• How much can you afford to spend on trading education?
• How much are you willing to lose during the ‘learning’ period?
7 Review your current time schedule.
• How much time can you commit to learning to trade?
• Produce a weekly planner to ensure that time is always available.
8 Seek advice from a licensed financial adviser.
• Discuss your desire to trade, and how it can best be safely incorporated into your wider portfolio and wealth management strategy.