Day 1

I've been busy setting up my business and getting some educational products and books. The first thing I did was find a system that was niche with low competition but profits still can be made. This principle was inspired through Timothy Ferris' "The Four Hour Work Week" where he reccomended setting up self-automated businesses in a niche market with little competition. I am sure this principle can be found in different forms and mediums, but solid principles and truths have their way in manifesting and demonstrating themselves in different forms and different ways. I opted to go purchase the educational product of Tim Sykes, who gained a lot of his attention from "Wall Street Warriors" in addition to his breakout in Trader Monthly's 30 Under 30 a while ago. His system is based around shorting penny stocks- a niche market with not very much competition. I'm pretty interested learning through his product.

Next was setting up a business entity to do my trading. I had my personal assistant do some research for me on how I could operate as a trader while still having a full time career as an analyst for a private equity firm. He gave me some articles detailing the advantages of forming an LLC so I went that path. I used a local firm here to set up the LLC- I think I could have done this by myself as I have registered different LLCs in the past, but went with him anyways to ensure everything was done right. I have a gut feeling I could have done it a lot cheaper as well, but lesson learned. The filing took about one day to complete with the state and now I registered with Internal Revenue Service getting an Employee Identification Number.

I found out through some reading on forums that if an account is under $25K you are limited to 4 trades every 5 rolling business days or else you are flagged as a day trader. That sucks even though I am not engaged in trading yet. In online poker you can reduce your variance by playing multiple tables and exploiting your edge. While luck is still a factor, your edge should be able to counter any bad beats or variances. It's too early to tell if this principle carries over, but that is just the first thought that came to mind.

Finally, I posted an ad on www.elance.com trying to find a bookeeper who can help me with the start up, proper accounting methods, and how to expense the start up costs and future daily operations. I have 3 bids right now, but waiting to see if I can get a firm outside the US to take on my project. However, the more I think about it the more I may want to keep that aspect on the States side.