Yes, that's what I was wondering about too...he was posting about problems he was having with trading technique and also confidence. cm, I do NOT mean to discourage you or run you down, but buddy, take it from me... even if you make money for your friends/relatives, there is a chance that it will go bad. People are ungrateful. You might make money for the first few quarters and then lose in one and have a call from someone unrelated asking you what's going on. You will get subtly veiled suggestions that you should make up the $$ from your personal funds. People say they are 100% prepared to lose all their money. Maybe 1/2 of them actually are. This combined with your recent posts asking for help with your trading indicate to me that it would be best for you to avoid OPM for a while, at least until you have a couple of years of steady returns under your belt. Hope you take that in the right way.
you can set up an advisor account, and have each person set up a client account under your advisor account. then, you can send trades to one or all client accounts, and it keeps them seperate it is ILLEGAL under federal law (and most state law) to accept ANY compensation for advising or trading other people's money UNLESS you have the proper licenses (they vary by instrument). but if u don't know what they are, you don't have them obviously it is ONLY legal then, if you do not accept any compensation you can still be sued for fiduciary mismanagement btw. even if u accept no compensation there is no form you can make a person sign to sign their right away to sue you for mismanagement
you can set up an advisor account, and have each person set up a client account under your advisor account. This is probably the best because: 1. If someone needs his money back earlier, it is easier to get it. 2. Different people can have different risk exposure. Maybe your uncle can take more pain, than your siste-in-law. 3. If there are people coming in later, easier accounting. it is ILLEGAL under federal law (and most state law) to accept ANY compensation for advising or trading other people's money Not true. It varies by state, you can have usually up to 5-7 people before you need a licence. Call your state comptroller's office, they tell you. What is illegal to advertise yourself as a financial adviser.
Someone once posted that IB has a "Friends and Family" type account for trading other people's money without taking the tax hit. I personally don't know anything about it but you could try IB.
I know. This wouldn't be any time soon...at least another year or more. I got time to think about it.
Now its time for me to be real mean and I am going to say this just once so its heard loud and clear. NEVER. NEVER. NEVER. Never mix cash and family or cash and friends. NEVER. NEVER. NEVER. Never enter into a contract with a family or friend unless its a pre-nuptial agreement. NEVER. NEVER. NEVER. Never enter into a business relationship with a family member or friends. Remeber the old bartenders rule. If your tending the bar, dont bring your friends.
Ok, If i dont manage money for friends/ family, how else do I bring in outside funds without knowing a bunch of rich people who have $$ to burn?. I hear that it's illegal for a hedge fund (if thats what this is) to publicly advertise.
Now that is an easy question to answer and hard to do. You ONLY need to show good returns on a fairy substantial for several years in a row. Show you know how to trade consistantly. Then you can start thinking about starting a hedge fund and if you have done things right your brokerage company can sponser you. They can bring in the investment dollars. You will also have to get all the proper licenses before doing this. Sorry, but there are no shortcuts here or anywhere in life.