Legal Question Regarding Trading Other People's Money

Discussion in 'Trading' started by feng456, Jul 18, 2011.

  1. feng456


    Hi all. I am wondering if anybody knows of any legal ramifications if I were to go out today and start offering to trade for either friends or family. I know absolutely zilch in the area so any advice would be good.

    I am considering it because I am undercapitalised and despite a decent % performance the actual amount is too small to be useful for anything.

    Thanks all.
  2. BSAM


    Don't do it. Get your own money.
  3. feng456


    I have no money. That's the problem. I am forced to overleverage, which is stupid, to try to grow my account.
  4. Maverick74


    I agree with BSAM for once. Don't do it. Absolutely under no circumstances do it. Unless you honestly don't give a shit about keeping them as friends and family.
  5. 15rms


    Feng real traders don't need or want other peoples money. Look at how old you are and how much you are willing to put into trading. Around 15 years ago when I first started I glowed when I made $150.00. A $400.00 trade for me was wonderful. I am a swing trader and don't trade daily. Thru the years the dollar amount I put on a good trade has naturally gone up.

    The focus for any trader should be the ability to win. The dollar amount grows naturally if you do that.
  6. feng456


    Don't do it because if i lose....


    i dont understand...
  7. feng456


    Also can someone suggest a way for me to acquire more capital to the point where a 10 or 20% annual return is reasonable to pay for living expenses?
  8. Maverick74


    Look man, you are short a straddle. If you make money for them, sooner or later they'll accuse you of skimming. If you lose money for them, you're a fraud. If you breakeven, they'll accuse you of being lazy.

    You can't win dude.

    Go to a prop firm! You'll get 10 times as much capital and the prop firm is prepared that you might lose their capital.
  9. feng456


    I am considering also applying for prop firms. The thing that really worries me is what is there to prevent them from stealing my systems?
  10. Maverick74


    As a guy that runs a regional office for a prop firm, I want you to listen to what I say very carefully. There is not a prop firm in this country that cares about your strategy, they just want your commissions. Prop firm owners are the most cynical people you will ever meet in your entire life and most believe that if you are making money, you are just getting lucky. These guys bet on sure things. That's commission dollars.
    #10     Jul 18, 2011