Help regarding “Pooling of Money by Friends and Family in Trading”

Discussion in 'Professional Trading' started by Gyles, May 27, 2008.

  1. Gyles

    Gyles

    Haroki, do you mean to say that each one of them (my sister, niece, nephew, and a couple of friends) have their own accounts, while you do the trading for each of them individually? If that is so, how do you trade for each of them separately? Please do explain. Thanks! :)

    Moreover, if you trade for each of them individually, then you do not get the benefit of trading a larger portfiolo, hence, how will the above procedure help? Please explain, thanks! :)
     
    #31     Jul 17, 2008
  2. MGJ

    MGJ

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    #32     Jul 17, 2008
  3. They all have their own accounts, and I trade it for them through the use of what IB calls a master account. Basically, I trade futures for them, and there's a deal where you dictate how many contracts each separate account buys/sells when you hit the transmit button. So if my default is say 30 contracts, I can split it up among all the accts - 5,5,4,7,2,3,3=30. I'm sure the same split could be done for stock purchases.

    I have authority to place trades, but no authority to transfer money. So I can lose it for them, but I can't steal it. :D

    I'm not helping myself at all, if that's your question. I'm doing it this way to help THEM out. By trading futures, I also eliminate the need to maintain $25k in each acct in order to avoid the PDT rule. So a larger portfolio is no concern of mine.
     
    #33     Jul 17, 2008
  4. Thanks, for that, it did teach me how to search better at Google, :)
     
    #34     Jul 21, 2008
  5. Gyles

    Gyles

    Thanks Haroki for the explanations. :)

    Thus, it seems that IB has a master account also. Is this different from the earlier mentioned accounts “Interactive Brokers (IB) friends and family account” and “Proprietary Trading Group Account”?
     
    #35     Aug 5, 2008
  6. What did you decide to do?
     
    #36     Sep 24, 2008
  7. ashantt

    ashantt

    Never mix finances and family. It sure is a recipe for a disaster.
     
    #37     Jun 27, 2009
  8. Gyles

    Gyles

    You have a point ashantt. :)

    My situation is that I need an amount of $100K in order to trade my strategy correctly, Since, I am not having the amount with me, I need to put together a pool of family and friends in order to raise the same.
     
    #38     Jun 29, 2009
  9. r4Nd.m

    r4Nd.m

    I think biggie said it best.

    "Money and blood don't mix like 2 dicks and no bitch, find yourself in serious shit."

    If you need 100K to trade your strat, wait until you have 100K.
     
    #39     Jun 29, 2009
  10. If you have $25K and need 100k total to trade why don't you just open a prop account and get the added leverage? (unless of course you don't plan on doing this full time)

    -RT
     
    #40     Jun 29, 2009