Trading in the financial markets, whether it be the Stock Market; the Commodities Market; the Futures Market; the Forex Market; or even the Options Market; is taking big risks on your hard-earned money.
Once you have this proper mindset, we can move on to other important components that make up your trading business.
Trading Plan
The first thing you need to do before you start a business is to have a Business Plan. In this case, it is called a Trading Plan.
Now, this is the place to set your Goals that you want to achieve. Be as specific as possible while being not to easily or impossible to achieve. Set yourself a goal that is challenging to you without it being too big a goal.
Now, with your goal set, you have to break down this goal into smaller components of actions that will lead to achieving your goal eventually.
Trading System
In order to survive and prosper in the long run trading in the markets, you need to be consistent in your actions in the buying or selling of your market products, stocks as an example.
You will also need a measure of what actions are right and which are mistakes. Believe me, without such a standardized and formalized measure, you will always think all your actions are right, even when you are losing money! That's the default optimistic human nature in control.