Had lunch with my friend about a week ago. Best trader I know. He does managed money. He trades with discretion in the accounts of several extremely wealthy investors. He gets 20% of profits. He told me his biggest worry is getting paid. He has no real recourse if he doesn't. He hasn't had any problems yet (about 3 years), but still he is concerned. rs7
Doesn't he manage the books? I would think he could cut himself a check. Also, does he receive a management fee?
He only has discretion, so no, he cannot cut himself a check. He is not named on any accounts. His investors get a faxed run of his trades each night, and of course they also get confirmations from the broker. So managing the books is irrelevant. Besides, he is a very honorable guy. He gets a one time initial fee when he sets up an account. It is small. I believe around 1% or so. So he really has no protection to get paid that I am aware of. He is starting a hedge fund. When I know more about it, I will post the website he is having made. I believe it should be pretty soon. Good trading this am to all: RS7
Back to Dirty Harry: "I Gots To Know!" How come fully 25% of the people who voted so far would not have taken the risk? Are they smarter than me? Are they too risk averse (to trade maybe)? Please explain if you voted nay! Thanks, M
maybe they are all just smarter than you. but it seems a pretty conservative stance for any trader. marcD
Because hindsight is 20/20....had you left the ending out (negative outcome), you may have seen a different poll. disclaimer: I have not voted.
I am sure you are right...everyone is a lot smarter with "hindsight". I was just hoping to get honest answers (yours was), but from people who said they would not have taken the shot. I just don't get it. I am sure I would still do the same thing again given the same circumstances. M
Maybe I missed it, but to vote in this poll I would have to know what reason your brokerage firm gave you for telling your client to get lost.
Excellent question!!! Here is what happened. The client (clients as it turned out) were trading some pretty sophisticated option spreads. The time frame included Oct. of '87. After the "crash", the exchanges raised their margin requirements. But most of the brokerages raised their margin above and beyond the exchange minimums. The client wanted to trade with exchange minimums, and the firm I was with wouldn't permit that. They were just too risk averse I guess. So the client took his business elsewhere, but he got poor fills. In the end, these factors added up and seemed to make a great deal of sense. As a member of the exchange, he did not have to deal with any of these issues. Hope you are having a great day Jorge! M Still waiting to hear from those who voted to stay put
Slow day, just trying to stay out of trouble. I voted to go for it, you would have been crazy not to take that kind of offer. This business tends to reward those who take risks.