How to Become a Full-Time Investor

Business plans for investment money managers are unique in that they are essentially service models that rely on the use of cash as inventory. No other business except banking really falls into such a category.

While the current market environment may be considered poor for investing, it provides an excellent opportunity to be out of the markets while you plan your investment business. I started planning my business, LakeView Asset Management, as the technology stock bust was running its course in the early 2000s. So if you're an aspiring full-time investor, I say right now would be a good time to do your planning. Personally, I think you always want to open a business at the bottom of the market, not the top.

Step 2. Understand How You Work -- Alone and With Others: You need to ask yourself if you can do this alone (via sole proprietorship) or if you will need to join one or more individuals (via partnership) in order to execute your business plan. There are pros and cons to either choice. Some people are able to fly solo, while others need a co-pilot or two. It is a matter of your personality and risk profile.

If you start the business on your own you will reap the full benefits of your success or suffer the consequences of your failures. In addition, you will have to bear the burden of not only trading, but also of the critical administrative aspects of running a business.