Thanks, I appreciate your concern. The trick around that is if that bozo had brains he would have initiated contact with them, much like stock brokers do. Then, after sustaining a WARM Call they are in the legal right. Thats what I would of done. Or perhaps go to an event, or play a round of golf with the people on the list brokers list. By initiating a warm contact we can avoid excessive regulatory barriers to entry. Thanks again.
I'm not sure this is right. Recalling from years back, it seems you'd be limited to soliciting (in any form, warm or cold) to people (1) you knew or believed to be accredited investors, AND (2) you had a prior BUSINESS relationship with. Playing golf with a stranger to turn him into a "warm call" would be "form over substance".... regulatory violation, likely.
Thanks for your reply. You are absolutely right. I want to get audited. Anyone who does not get audited is simply a fool and a waste of time. However, our human systems are prone to bullsh*t. This is why that John Hershey guy has so many enemies. I dont know the guy but he is villified and yet I understand where he comes from. Now, I will turn into a cheeky pr*ck. Lets all remember, MADOFF HAD BEEN AUDITED!!! So take any human systems of validity with a grain of salt. In the end, anyone who is crazy enough to give you their hard earned money is taking a risk. Satan himself could audit you in a Brooks brothers suit and an MBA from Haaaaaarvahd. That does not mean you are not a fraud. If I remember correctly from my economics class in college (total waste of time and money), Long Term Capital Management was audited, and not just by their frat buddies either, but by HUGE firms like PriceWaterhouse and the like. I am a contrarian by nature. I would rather have investors with investment knowledge that understand risk, bullsh*t, honor and trust. I have built up a web business as well on those principles and I have learned NEVER to deal with people that dont trust you. If someone trusts you, you repay them with results. Its kind of like the Iced T business plan. Either trust me or dont. If you dont, go find a nice polished IVY to lose your money. If you trust me, by the time you see your returns and funds growing in an account you are free to withdraw your profits from, well then, thats the best advertising I can ask for. I dont understand the American way of things in that people here TRUST crooks and wont give anyone else a chance. If I had millions, why in the world would I request to manage opm? It is this elitism and backwards way of thinking that helps me see that people in this country are brainwashed beyond belief. My sister trusted her Pension to a bunch of Fee collecting sheisters which have helped impoverish NYC cops, teachers, firefighters and other civil workers. No disrespect, but white boys in suits did more damage to her and thousands of others than the worst criminals in Rikers. However, me, with my little po'dunk BS in Finance (in some schools its a BS and not a BA), I was able to forecast the housing bubble (not too hard to do) and avoid XHB type stocks like the plague! So yeah, I am pretty much against institutions and fraud. This includes useless pieces of paper that can be manipulated. Audited? Shoot, Unfortunately I HAVE TO...its like a trip to the dentist. Not because I am not proud of my accomplishments and future endeavors but because I HATE the way people think here. Audited? How about thats what JAIL, the SEC, CFTC and Courts are for. However, its how the game is played and I must follow these dumb rules in order to get anywhere. I just simply dont understand why people trust banks, judges and ESPECIALLY ACCOUNTANTS!!! Accountants are the saddest people, next to Lawyers that I have personally met in my life. Oh well, only 500 more days until I find some bean counter to go over my accounts at TOS and Global. You guys have been extremely helpful and I thank you again Scataphagos!
"A track record showing explosive growth is my best bet along with my series 3. As far as a CFA goes, im considering it for after I hit thirty. As of right now I would like to focus on my explosive growth strategies that have been working so far. Money talks. An audited track record should do the trick. Also, I would not be soliciting funds greater than perhaps 20k per investor. Why? Trading is a numbers, specifically PERCENTAGE game. If you cant return 7% on 10k or 100k, what makes you think you can do more on 1million?" -ME
WOW! I did not know that! Thanks man. Perhaps initiating a warm contact through ANOTHER business endeavor would work?
wolfab, many of the things you say are true, but try to look at the flip side of these things... Specifically, you're right about auditors and accountants and you might be right about trust. However, the thing about Madoff was that not only was he audited, but he was perceived as trustworthy by most of his investor network, who knew him personally. So trust is not the panacea... Moreover, you have to be a pragmatist and a skeptic. Say I am an investor and I am about to give you, someone I don't know, my money. While information from your accountant can be flawed and, in fact, outright false, it is information nonetheless. Given that information, I can make a decision about whether to take it at face value, decline the opportunity or dig further. Point is that some information, even if it can be flawed, is better than none, as long as you're a skeptical investor. If you think about it, the same logic is in play where Ivy league schools are concerned. Elitism is just a shortcut. Shortcuts work most of the time, but periodically can lead to catastrophically wrong decisions. In general, best of luck to you. Sounds like you're doing things right and you should do well.
Thank you. I understand you need data to make an intelligent decision. What I should have said is that in the end, an investor has to take a crazy risk and TRUST someone, regardless of the input that may be flawed. In essence, its a scientific experiment where the variables may be controlled and honest, or fraudulent. Where you are extremely correct is that in any scientific experiment a hypothesis is formed using available data and historical evidence. I love the scientific process but either way you slice it, a risk is a risk is a risk... Why the hell did i take a bear view today? Long dow at 8925...after shorting this morning, hopefully i can ride this hype of a market! Real estate is by far the most bs of all reports...next to crude oil...
If you cannot outperform with good system stats (Sharpe, Profit Factor, max DD, etc) then no matter what you do you are wasting your time. But if for some unlike reason you DO do this, Go on to places like TimerTrac.com, Collective2.com, Theta Research, TimerDigest, StrategyRunner.com, Striker Brokerage, Attain Capital brokerage, Robbins World Cup of Trading. Get a nice cheap audited track record (and some publicity and maybe some customers). Other than that, maybe others have ideas
craptastic, stopped out after correcting this mornings short mistake....im still a rookie! need more time! either way, im gonna wait for a shoulder or a double top...GOD I HATE BS RALLIES!!! Cant fight the tape though. Its just that I have been in Florida, NYC, NJ the past year. Housing is bullshit man. Right now, people with bad credit and a deposit can RENT ANYWHERE they want. Furthermore, Florida is a HOT MESS! The truth is that Helicopter Ben is THIRSTY to raise rates again, hopefully later than sooner. Lets say people buy this bullshit, how can they justify all the empty malls? How can they justify all the unemployed? College debt is so bad Sallie Mae had to bribe people in govt in order to get a carte blanche award of being the SOLE HANDLER of new student federal loans. I feel bad for younger kids. Student Loan defaults are skyrocketing. Bankruptcies are expanding. for now, lets ride the tape and be on the lookout for reversals! I feel like such a fool for being a bear!
First, brokers can cold call because they are licensed - and they can only cold call about certain registered products (mutual funds, exchanged traded stocks); they can't cold call to pitch a hedge fund, for example. Second, if you know someone and are reasonable assured of their accreditation from another business relationship, that might be legit. But if you foster a business relationship for the pure purpose of marketing your fund to them, then it might be frowned upon; depends, and complicated. Okay, I'm going say something that'll probably not make you happy. But I don't think you are ready for the fiduciary duties that come from being a fund manager; I'll assume you are good at your type of trading strategy, but you are not when it comes to your regulatory and ethical (yes, there is such a thing - there are many professional ethics standards for asset managers) obligations. It will be both to your and your clients detriment.