I was wondering if anyone had any ideas about getting access to some serious capital for a trading business..I have access to about 125k which gives me about 500k buying power with new margin rules.. However I would like to get access to major funds like 500k to 1 million so I can have several million worth of buying power....I Looked at SBA.GOV website but it seems that biz of trading does not qualify for their business loans??....I also dont want the hastle of having to go to a trading firm.. I know this seems like really basic question..LIke DUh where can I get some money?? BUt I thought I would throw it out anyway..
Top 5 ways to raise that much cash.. 1.- Rob a bank.. yes, its an oldie but a goodie.. all you need is a ski mask, a gun and some chumps to help you haul away the money.. the downside is the possibility of becoming "Lifetime Harry's" new girlfriend over on cell block eight.. 2.- Charm a rich widower.. hey, old people need some lovin too.. of course this one could take some time to mature, or for her to expire i should say.. 3.- Take out a large insurance policy on your spouse.. accidents happen you know.. besides, do you really think she will stand idly by while you snooker up to the widow in #2? 4.- Sue McDonalds.. slip on the floor and pretend to hurt your neck.. or pretend a hot pickle jumped off your hamburger and burned your tongue.. ya know, thats actually happened before.. 5.- kidnap someone famous.. like chelsea clinton or Donald Trumps daughter, wife, whatever she is.. then you just hold them until you get your ransom.. of course in the case of Chelsea, i doubt the Clintons would want her back, they wouldnt want to lose the publics sympathy from having such an ongoing tragedy.. (and they would likely blame their daughter being kidnaped on the Bush tax cut).. and as for the slinky chick on DT's arm.. well, i dont think you could get him to pay much more than the going rate.. but heck, its a start.. =) -qwik
Thank God the SBA doesn't include trading as a viable start-up business. At least my tax dollars aren't financing losing traders. I am assuming your question is intended to be serious and not posted as a joke. You are unlikely to find any "normal" source of business financing willing to loan you money that would be put at such risk. They want to know there is a greater than average chance they will get their money back. Trading success rates just don't support it. Just try putting "daytrader" on the occupation line of a mortgage application and time how long it takes for the loan officer to stop laughing. You're best chance is through a professional firm, which I assume is much less of a "hassle" than a traditional loan. Another option is to find a trader willing to back you, although this is rare, unless you have a good relationship with someone who is abnormally generous and helpful (This is actually how I started, so its not impossible, just unlikely). The fact is that money will only come from a source familiar with the risks, and there aren't many in this category. Also, for that kind of money, you will have better chances with a proven track record. It sounds like you have enough to get started (you may already be trading, so I apologize if my assumption is wrong) and if you are any good, with time you will be able to build your own capital to those higher levels. Best of luck, Kirk P.S. While I was writing this, I saw qwik's reply...I like it much better. After picking myself up off the floor, I decided it was best to disregard what I said and choose one if his options. Qwik, your in the wrong business!
What do you need so much capital for? I see this all the time as mentioned as a great advantage of pro firms. Umm doesn't increased leverage mean increased risk? If you can trade successfuly with 125k wouldn't that be worth 1 mil in relatively short order? what type of strategy do you use that necessitates such massive leverage?
maybe do like me... borrow from friends, work two jobs!! really good question though. If you've got a proven track record, you maybe able to start a little hedge fund, and then get the ball rolling... sky's the limit.
only reason you may want more $$$$ is to self clear or arrange SLK partnership. No trading strategy exist to yearn to be bigger. The opposite is true many successful traders/hedge funds are too big hence they close funds to public. Public finance of trading needs only one prerequisite - no need for the money !!! if you can't give a rats ass if you have 1-2 million extra and super successful than you will have rich investors chewing on your knees begging to take their 250k.
First, protect and grow what capital you have, before seeking inordinate sums to risk. It is not really size, but percent on return. If you can gain 2% / day on that "measly" 100K, after compounding your gains over a year you should be 100x up...something like 10mil......more than that measly 500k or 1mil you were seeking to borrow. I admire your Go Big attitude, you need to be ballzy in trading, but more so in risk management. Its the consistent 2% base hits that keep you in the game, and make you savory the rare 20% grand slam home runs . Your bats big enough...step up to the plate....even if you bunt....participate!