The trader can increase leverage by a factor of 2 on the other account and keep 100% of the profits for the same risk.. ------------------------------------------------------------------------ Thank you all for your inputs. I really have been thinking through the years of trading another people's money offering to protect against losses. The reason is simply increasing income through this service. But: 1. I couldn't become profitable yet and 2. You opened my eyes to aspects of this idea I had not thought of. It is not just a matter of confidence (if I am profitable then I can multiply the funds by ten and earn a lot more, besides offering protection to people who can't trade by themselves). Your multiple replies (surprising me) showed me that this proposal is not really attractive from any point of view. The disadvantages for the trader are brilliantly synthesized by Businessman. My disadvantages are clear from various replies: it is not possible to obtain decent return on investment. The trader should be very well paid for the additional risk he would take. I used to think of about 80% of profits to the trader for taking the risk. But this figure kills the business from the beginning. It was really a poorly thought out proposal and I thank you all again for taking you time to argue about things I should have been aware all the time. I apologize for such an idiot question but I could not see the obvious. Thanks and thanks again.
ok basically what you proposed here sounds like this ,take your money ,do the trading with your money and give me percentage of your profits if you lose it is your problem.....ha.... ha ...ha ....... ............lol....lol
LOL, I thought the same thing. How can this guy consider himself anything but a Joke. I wonder how he is smart enough to have $100,000? He must had run across a lot of pigeons in his day.
(if I lost investors money despite my best efforts just saying "sorry, you knew it was risk capital" would not be enough for me to feel good about myself). That's exactly why I thought about offering safe investment to people. But you all showed me that as high as could be the reward, it would not be good to anyone. The investor would be poorly rewarded and the trader would take too much risk and stress.
Precisely. And give me your profitable methods/tricks/system too. Maybe I can supplement the income you provide by publishing a newsletter on this. And by the way, you have a wife or girlfriend?
You can already get this deal. See http://www.elitetrader.com/vb/showt...threadid=105661 Banks are always putting traps on your way. I worked for 16 years in a bank and I hated it. I could't afford pushing those crap of bank products over the clients. I thought about a LPOA and a competent and confident trader. But it is not feaseble anyway. I bet no one is going to take the risk. Maybe someday I become profitable and go mad enough to put my funds under this kind of risk. I know I have some ET (extra terrestrial) ideas. This is just one more of them... I would not be too worried about other people losing money. I would be covering it. It would be as if I were trading just my own account at a higher leverage. But mathematically and financially it seems now to be nonsense. Hmmm... maybe not. It would be interesting to quantify confidence together with rate of returns. I use a method to do this but I am not sure about its reliability.