How to Determine Stock Trading as a Home Business

List for Evaluating Costs vs. True Profits

True profit is one big part of trading that most traders fail to include in profit evaluation. How to calculate the true cost of your trading is considering more than just the cost of charting software, broker fees and charges, and possibly subscriptions to newsletters.

In order to accurately calculate whether a trade is profitable or not, you must also include ALL of the normal business expenses for Stock Trading as a Home Business.

Otherwise, you are deluding yourself as to your profitability in trading.

Stock Trading as a Home Business includes the following:

  1. You MUST pay yourself something for your time. How much could you make an hour working for a corporation in your field of expertise or your degree? That is the minimum amount you should use as a base for trading expense as an hourly wage.
  2. You must also include the average losses. You must take an average of your losses each month and divide it into your trades per month, and then subtract that loss from your profits of every profitable trade.

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Trade Wisely,

Martha Stokes CMT

Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses

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