I want to start building a track record so I can eventually manage OPM. I only want to manage money for my family. They have offered 500k for a long while and I kept saying no because I knew I wasn't ready. I still feel I'm not ready for it but I probably will by by the end of this year. I'll post my results here starting 5/1/09.
I'm not happy with my discipline on Friday so I am not trading or monitoring the markets today. I day trade mostly futures but some stocks as well. I have a very small swing trade account too which I use for swing trades. So far: 5/1: +600 5/2: 0
I'm again not happy with my discipline so I'm taking tomorrow off. I'm taking days off until I reach 100% discipline because I'm not trading OPM without 100% discipline. I put on a swing trade today. Short 1 YM (September contract) at 8344 05/01/09 694.75 05/02/09 0 05/05/09 -123.48
I realize i have the wrong dates so i correct them. I do not trade today. 05/01/09 694.75 05/04/09 0 05/05/09 -123.48 05/06/09 0
It's easy to get $500k bp at a prop firm and take 100% of the profits. Why on earth would you trade your family's money other than ego?
When I say family - I mean my parents. Others have also offered but I probably won't accept their money. With parents money, I can charge a 20% incentive fee (no management fee). And I'll eventually get 50% of the rest as an inheritance. That's a pretty good incentive fee. All their money right now is in CDs, and they are getting killed with 2% yields (but they are obviously doing much better than the 401k to 201k crowd). And 500k is just a fraction of what they have so even if i lose half, its no big deal. If I do really well, after a few years I may register. But right now I just want to focus on trading and not fund accounting, admin., or marketing issues.
I don't want to be rude here, but seriously why would your parents want you to manage their money (500k) when you don't have a track record?