£800k to invest

Discussion in 'Professional Trading' started by alexrpeters, Mar 25, 2010.

  1. Hello all,

    Serious question and not some pie-in-the-sky scenario (if need be I can supply bank statements with the account numbers blocked out obviously to back up my claim.)

    I've just sold a software consultancy business to a much larger rvial and after CGT, legal fees, accountancy fees are deducted I will be left with 800k net. I've signed a non compete clause for 3 years which was a condition of the sale

    I'm 34, married no kids, I live in a rural cottage which has a very small mortgage left on it. Wife works full time.

    I'm at a serious loss for what to do now, I'm a workaholic and spent the last 12 years building my business and am wanting to go in a new direction now.

    I've never traded in my life but hope that if I had 750k to stick in (the remainder to pay my mortgage off), then taking small positions and keep my money managment discipline tight, I should be able to gross enough to keep me in a good lifestyle with minimal risk to capital.

    Currency trading interests me. And I'm VERY interested in doing a 2-4 week course with a reputable firm like Don Bright's to give me the background knowledge to.

    Can anyone advise me that if they were in my shoes I am doing the right thing or should I walk away now before I get my fingers burned?

  2. Do you want to trade or do you want to put your capital to work in order to make more money?

    The two are unlikely to correspond, but not to say it's impossible.

    Trading from your current position should be viewed as a business venture, so why not evaluate it as such.
  3. nLepwa



    Do you really think you can beat the market with a 2-4 week course while dozens of phd's dedicate their life to the task and still fail?

    I you don't want a professional to manage it for you I would buy the SPX (if you don't need the money) or bonds (if you might need it).

    Keep a little on the side so you can open a small retail account a play with it (i.e. loose it..)
  4. Tread carefully. Especially in forex where things tend to move very quickly. You seem to be on the right path regarding training/education before jumping in with both feet. Also, I would not recommend using all or even a large portion of your wealth until you are comfortable. Start small and size up over time. Your life situation seems to permit some risk taking at the moment, which will make it easier for you to trade without excessive fear.

    Most of all, have fun. If you find you don't enjoy trading, but are simply in it to make money, it might not be for you. My humble two cents. In any case, good luck to you.

    Edit - most responses you will receive here will discourage you from trying. They will tell you it's not possible to trade profitably in the long term. This is likely because they are not profitable themselves, therefore believe nobody can do it. To refute this I will direct you to lescor's journal in the journals forum. In short, take the advice you get on these boards (including mine) with a grain of salt. Only you, yourself, can decide if trading is right for you.
  5. I had a similar path. 29 and semi-retired from "pro" poker (NLHE and PLO) to trade full-time. No bracelets, but 3 top 10 finishes. I had a bit more to start, but threw 80% in munis and put the remainder in an interactive-brokers account. Built a one-year return and then joined a fully-staked prop-shop.

    I had invested at a hobby-level after grad school and through my tournament days. I am a swing-trader and use Kelly for money management. My setups are objective enough that I feel confident using Kelly.

    Have since sold the illiquid munibonds and approximately 50% of my net worth in a hedge fund that does equity arbitrage with equity swaps and ADRs. 30% is in a Blackrock buy-write fund and the remainder in cash. I am renting a large loft in Tribeca for too much cash, but will buy a place before the end of the year.

    Get and edge and trade it. If automated all the better.

    Best of luck to you. Let us know how it goes.
  6. promagma


    If you are prepared to be a workaholic for another 12 years building a trading business .... go for it!
  7. Your chances of longterm, lucrative success is probably about 1% or less.

    Your chances of losing some to most of your money are probably about 90-95%

    If you are willing to spend about 10,000 hours of screen time, you may raise your chances of success to 10% or so. Trading is a serious profession, like becoming a doctor. Takes many many years. But your chances of success are more similar to becoming a professional poker player. Many want to, and few get there.

    Should you walk or run away? You have money. Why do you want to let it ride on one number on the roulette wheel?????

    Be aware that most of the "go for it" crowd here (people you never met), are trader wannabes, regardless of how much they may seem to know. And they give no concern whether you lose all your money.
  8. Forgive me for being skeptical, but I used to play quite a bit of poker myself and know how extremely hard it is to crack the top 10 at the WSOP, let alone do it three times. Indeed, many pros you see on TV have not even accomplished this feat.

    Is there any way to back up your claim? PM to me perhaps?

    If not, no biggie. I wish you continued success.
  9. I've never taken an IQ test, but played football in college and got a 48 on Wonderlic. I am still in contact with a friend from undergrad who scored a 35 on Wonderlic and is a major hedge fund operator and has an amazing 5 year record. I never equated discretionary trading or poker skill with IQ. He's also an amazing NLHE player.
  10. Forget I mentioned it. These were not main event cashes. I would never reveal my name or my online poker handles.
    #10     Mar 25, 2010