I'm technically a 'kid' when it comes to speculative derivatives structuring (<30). I have a position trading method that Iâve developed independently, but I don't have the personal net worth to open a retail account for trading futures and futures options, which would be fine to begin with; and I lack the personal connections to borrow the capital to bring my net worth up to par. Therefore, I find myself in a less than ideal situation, but I'm the type who wouldn't have it any other way, for the time being. At any rate, Iâve got three choices: 1) find a job with a local prop trading firm that provides trading capital 2) find a trading mentor/partner willing to give me a shot 3) join a local trading club and hope I get a lead to 1 or 2. So, is (or was) anyone out there in a similar boat and how did things turn out? Also, can anyone think of any other choices for me? And, if youâre in Socal, are there any reputable local trading clubs that I could join? Thanks!
I was in the same boat. I'm in OC now. I took on a 2nd job, saved my money until I had $2k to open an account then kept putting money into it and trading 1 lot at a time until I made enough to trade 2 lots, then 3, etc. If your system works you should be ok. I dont know of any trading clubs either but would be interested in one.
Go work for money and trade your own money. No one wants to back a kid with no track record. I trade in LA too. I have a second job too.
Well, this is how clubs get started in the first place...Iâm glad to know someone else out there knows what itâs like. How long have you been interested in derivatives structuring? I've been at it for ten years and I recently hit pay dirt with an automated little gem that I finally got right. But Iâm curious to know, how did you get around the minimum net worth requirement set by the NFA? I could open up an account with $5K at the drop of a hat (the trading capital by itself is not the problem and it never really was, in my case anyway).
Structuring and trading are two different things. So are you trying to get leverage to structure deals, for example structure an energy trade with an investment bank using swaps, forward curves and options? Then that gets complicated and I have no advice other than business loans or I got attention from a few hedge funds a few years back with emissions trading, i put together a pitch deck and emailed and called and networked with anyone and everyone. Start with a small account, perform the same trades (fully hedged) and treat it like you structured it. Then after a few months you'll have a track record. They say you need 1 year of a track record but you can do it with only a few if you have small draw downs, good return, well hedged, etc. If this is what you're trying to do I can help further but need to know exactly what you're trying to do and what you're trying to structure.