Imagine you want to start your own business

Your big dream: Your own restaurant!

How would you proceed?

Wouldn’t you first think about what kind of cuisine you want to offer? Maybe a classic Italian restaurant, fine dining, or perhaps a café with homemade cakes. After all, your customers should know what to expect from you and what you specialize in.

Do you know those fast-food places where they serve not just pizza and pasta, but also kebab with fries, Indian curry, Asian noodles, and even burgers?

What is your first impression when you see the menu of such a restaurant?

Maybe you think: Wow, they have everything! Pizza, Kebab, Asian Noodles... But be honest – how likely is it that all of these dishes are really good? With so much variety, the restaurant quickly loses focus.

So, what if you focus on authentic Italian cuisine instead? Sounds boring? Just wait!

It’s the same with trading.

Today a bit of crypto, tomorrow some options, and in the evening, add in a bit of futures and forex?

Stop. Pick one market!

Focus, for example, on options and perfect your strategy with them.

Ristorante La Confusione?

After deciding on a cuisine, the next step is to create the menu.

How about something like this:

Our extensive menu offers everything your heart desires:

• Antipasti

• Pizza (2 pages from Margherita to Mista to Truffle Pizza)

• Pasta (Spaghetti, Penne, Tagliatelle, Ravioli, Lasagna, Gnocchi, Linguine, Fettuccine, Orecchiette, Pappardelle, Maccheroni, Farfalle, Fusilli)

• Various meat dishes like Rump Steak or Ossobuco

• Various fish dishes

• Desserts (everything from ice cream to tiramisu to panna cotta to zabaglione)

What’s the problem?
With such an overloaded menu, offering everything from bruschetta to truffle pizza and ossobuco, the restaurant loses its focus again. Customers are confused about what the house specialty is and often doubt the quality of such a mix. In the end, no dish is prepared perfectly.

You’ve already focused on one market – Italian cuisine. But as you can see, you can still lose focus within your market.

Now, imagine you focus on the best Neapolitan pizza in the city! Italian original recipe. Thin crust. Homemade tomato sauce. Baked in a stone oven. A taste your customers will never forget. Your restaurant will be the go-to spot for pizza lovers!

The same applies to trading: Less is more!

Even if you’ve already focused on one market, such as options: don’t trade 15 different underlyings at once or switch them every week. A handful of stocks that you thoroughly analyze and get to know is enough. Soon, you’ll know their charts inside out. You’ll understand how these stocks “tick”.

Let your selected stocks become the specialty of your house!

What else is important when you want to open your authentic Italian restaurant with Neapolitan pizza?

Of course: You need a financial plan!
You need to think carefully in advance:

• How much is the rent?

• What are your fixed costs for staff, ingredients, and equipment?

• What will you set aside for unexpected expenses or taxes?

• What revenue do you need to generate to be profitable?

• And of course: How much should your pizzas cost?

If your prices are too low, you may attract customers, but it might not be enough to cover your fixed costs. If your prices are too high, customers stay away. The key is to find a price that covers your costs, gives you a good profit, and still attracts customers.

You need a plan for trading as well!
Ask yourself the same questions about your portfolio:

• How much of your capital are you willing to risk? The 1% rule is a tried and tested approach here.

• How much do you want to invest per trade?

• What happens if a position lasts longer than expected? Can you live with $10,000 of your portfolio being blocked?

Your trading plan should clearly outline these and other points before you make a trade. This way, you ensure that you act strategically and not emotionally. And just like with a restaurant: A well-thought-out plan makes the difference between success and failure.

Your success begins with a clear plan – and your trading journal.

Just like a restaurant that couldn’t last long without a financial plan, you also need a solid trading plan. But the plan alone isn’t enough. You need to track and analyze it to continuously improve.

Our trading journal with integrated emotion tracker helps you not only document your trades but also your emotional decisions. This way, you can understand when emotions influence your actions and how to respond to them. The key to long-term success is learning from both your mistakes and achievements – with a clear mind and a well-thought-out strategy.

Start today and take your trading to the next level.

Have a great trading week.

Your MindTrajour Team