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promagma
Registered: Aug 2004
Posts: 781 |
12-07-11 06:47 AM
A prop firm is YOUR money on the line. Yes, can trade with 50k or 100k but the profit or loss is in your pocket.
Anyone who has 100k will probably be too smart to give it to you, and you are too "green" to understand why. So your "solutions" are
Find someone dumb
Or go the prop route
I got started at a prop firm with 5k of my own money and 100k buying power.
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Spearhead
Registered: Nov 2007
Posts: 72 |
12-07-11 07:34 AM
As an aside, after watching several episodes of "American Greed" on CNBC, I'm always bewildered by the large number of people willing to give money to scam artists without doing any due diligence simply based on their "charm" or "honest appearance". Anyway, I suspect that raising $100K would have as much to do with your personal charisma and sales ability as your trading record, if not more so.
What would it take for me to give $100K to the OP? I think it's really tough to answer as far as having a well-defined set of criteria, but to borrow a line from Steve Jobs, "I'll know it when I see it."
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Spearhead
Registered: Nov 2007
Posts: 72 |
12-07-11 08:22 AM
Quote from traderwann:
where to get the initial $100k?
I'm not particularly knowledgeable about this subject as I've never had to raise money myself. However, had a couple of thoughts anyway. If you're not interested in prop trading which some on the thread have suggested, you could try and open an account on covestor. I believe the minimum size for a portfolio manager account is $20K. You'd have a semi-official track record and could even attract some investors to follow you, although management fees there are real low. I don't know that you could use your performance numbers there in an official way, but I'm sure you'd make a better case for yourself at least to family and friends.
$100K is not a lot of money, so I agree with one of the previous posters who suggested hitting up family and friends first. Also, if I were a potential investor, I don't think I would be interested in being your seed money. I'd want to put $100K in where you already have $1Million of your own money on the line. Regardless of how successful I think your strategy is, I'd be worried about you taking crazy risks with my money.
Anyway, it would be pretty interesting to see how some successful hedge fund managers started out. I would think most of them worked in the industry beforehand and are starting out with a pretty healthy bankroll. On the opposite side of the spectrum, I would think needing $100K right from the start is not a recipe for success.
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heech
Registered: Dec 2008
Posts: 1876 |
12-07-11 09:02 AM
You know, after having done this for a few years... the other question is, why does anyone ever *want* to raise $100k?
Let's assume you meet the right combination of rich/dumb, and bring in a check for $100k. If you do the math, assuming 2/20 and "reasonable" (somewhat sustainable) returns of 25% a year... you're going to make $7k a year off of that $100k you manage to raise. (And that's ignoring the audit/tax/admin expenses you will subsequently have to pay for.)
I mean... really? All that work and ass-kissing and hand-holding for an extra $5k a year? Unless you're raising $5 million at a time, IMO, it's all pretty pointless.
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Martinghoul
Registered: Jan 2009
Posts: 5641 |
12-07-11 10:04 AM
Quote from traderwann:
What the h**k?! I said right in that post it is NOT a story. It is real. It actually happened. Ignored again! Is it a conspiracy if it is actually happening? lol
Well, you used the term "story", not I. I didn't realize from your description that it's something that actually happened. Moreover, even if it did, in fact, happen, it doesn't really mean anything, other than the existence of random dumb luck, i.e. a matter of a lottery ticket that I have alluded to a number of times.
Martin -- what do you need from a discretionary trader then? Let me guess, you need years of live results. Ok. How do I get that? Around and around we go. It seems like you ENJOY telling someone you wouldn't touch them instead of enjoying coming up with solutions. I prefer solutions. I try. No one else here does, they prefer to shut things down. No progress. Lost opportunity. Etc. It's quite sad. Perhaps the way I think may lead to the results I'm getting?
Dude, you have seen many different people give you a whole bunch of answers. Different "solutions" have been offered. None of them seem to be to your liking. Nobody is trying to shut you down, you have to stop thinking like this. What you're being told is a reflection of reality as people have experienced it. That you don't like it and find it too negative is neither here nor there.
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heech
Registered: Dec 2008
Posts: 1876 |
12-07-11 10:17 AM
Quote from traderwann:
For exactly like I said, it's not an actual solution, it's out of frustration for being stuck. The point is to find a solution. I tried. I suggested something. I said that was ignored. Now you ignored my saying it was ignored. If what I suggest can't work, why? How to mold it? In what direction? What are the obstacles? Just saying, there's ALWAYS a solution, just a matter of finding it.
Some day, perhaps years from now, you'll be self-aware enough to laugh at your own posts in this thread.
What's your solution for my dream of dating Megan Fox? And no, I don't want a three year plan. I want a SOLUTION!
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