Legal Question Regarding Trading Other People's Money

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

  1. achilles28

    achilles28

    It's entirely relevant if you're considering trading OPM or going full-time.
     
    #31     Jul 19, 2011
  2. How short are you to the 20k. if you need like 10 k more, it shouldn't be a problem borrowing that kind of cash at 10% to 15%. ever heard of low interest credit cards, overdrafting your chequing account, line of credit, small personal loans, the list of small loans goes on. if all you need is the cash to trade at Bright just borrow from 5 or 10 of these places. i could prob borrow 15 grand from my banks and credit card companies before even attempting to ask for more funds and i'm in a similar situation as you. find out how much you can make on actual money borrowed, all your left with is the spread of what ROR your earning and the cost of borrowed capital. Remember that if you trade at Bright and go 10x leverage your return or actual cash ie the 20k is multiplied. so say you can make 15% at bright on 200k thats 30k profit or 150% ROI, and the cost of borrowed money might only be 15%. thus making a spread of 135%. of course if your not day trading, forget about trading overnight positions at bright, at least using lots of leverage. if your really confident, just borrow the cash, if you blow up, worst case scenario is you owe less than 20k, you can work that off easily in half a year at any job.
     
    #32     Jul 19, 2011
  3. feng456

    feng456

    well first off, i have no idea to go long or short. i go with my system and thats the only thing i know so anything else is pure gambling.

    i have considered loans, however, it would put additional pressure on me which would likely have detrimental effects on my trading performance. trade with money you can lose right?

    if someone here was interested and was serious i have account statements to back up my talk.
     
    #33     Jul 19, 2011
  4. achilles28

    achilles28

    If you're serious, start a journal in the journals forum. Post live calls with stops and tp levels. If you're profitable, investors will contact you. It's as simple as that.
     
    #34     Jul 19, 2011
  5. feng456

    feng456

    I've thought about doing that. However, my system I feel is rather simplistic and easy to decipher so there's no point in me risking exposing it in public.

    As I've said I have account statements that back up all my claims.
     
    #35     Jul 19, 2011
  6. achilles28

    achilles28

    Most profitable strategies exist in the public domain. It's their refinement, application and execution that make the difference between black and red. Most fund managers can't beat the S&P. Post live calls without charts or time frame reference. You've got nothing to lose.......
     
    #36     Jul 19, 2011
  7. DT-waw

    DT-waw


    thats completely not true.
    i've never met any prop firm ready to lose any capital, not even 10 bucks.

    all they want is huge turnover = money from rebates, and you taking ALL, 100% of the risk.

    prop firms are NEVER interested in trading gains, only in rebates.
     
    #37     Jul 19, 2011
  8. zdreg

    zdreg

    "someone" starts with you.


    you have no track record worthy of discussion. use search in upper right hand corner to learn about creating a track record.
     
    #38     Jul 19, 2011
  9. DT-waw

    DT-waw

    not only are they in public domain. most people trading profitable strategies will.... lose. they'll try to be smarter than strategies. they'll apply the most crazy position sizing, like doubling size after few winners, or trading with superhigh leverage.

    most fund managers will turn away from profitable strats - they'll say: "oh, its not managed on a $1M+ account, so it must be weak" or they will want to start with 1 contract and after initial profits increase size to 3 or 4 contracts just when a DD starts :D

    managing OPM? it makes sense only if your strat shows 15 winning months in a row and then busts in 1 week. or if you run a ponzi scheme- guaranteed success with OPM!
     
    #39     Jul 19, 2011
  10. Lornz

    Lornz

    If you actually know how to make money, just take up a loan...

    I started by maxing out a couple of credit cards...
     
    #40     Jul 19, 2011