Legal Question Regarding Trading Other People's Money

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

  1. "trade with money you can lose right?"

    I think this might not be the attitude your investors are looking for.

    Also .. you mention positive returns but no taxes paid.

    And not having 20K..

    Maybe I'm missing something, but should an investor not be afraid?

    Doesn't exactly sell it.
     
    #41     Jul 19, 2011
  2. Go work at a trading firm, then you get a salary and learn faster, plus you can scale quicker if you become any good.
     
    #42     Jul 19, 2011
  3. feng456

    feng456

    im still waiting for someone to recommend me a prop firm...
     
    #43     Jul 19, 2011
  4. Pekelo

    Pekelo

    Well, you can get the broken leg syndrome from your investors for one....

    But humor us, what would be your offer (fees, target potential) for a would be investor?
     
    #44     Jul 19, 2011
  5. For starts it depends what state you are in; moreover many states require license etc...

    That's the first hurddle. I'm currently using IB Friends/family acct to manage and its working fine
     
    #45     Jul 19, 2011
  6. LeeD

    LeeD

    "Before borrowing money from a friend, decide which you need most."
    ~American Proverb

    "Don't lend money to a friend, you will lose both."
    ~English Proverb
     
    #46     Jul 19, 2011
  7. lindq

    lindq

    The pressure you may feel from trading a loan is nothing compared to the pressure you will get from trading other people's money.
     
    #47     Jul 19, 2011
  8. LeeD

    LeeD

    An important consideration is most people are not comfortable with loosing money even if they say otherwise. Their idea of a trading account is it's like a saving account. (Unless some money is withdrawn) it only goes up.

    If you accept investments you have to also accept the investors giving you a lot of headache at the first sign of decline.
     
    #48     Jul 19, 2011
  9. lindq

    lindq

    The question regarding your general strategy and approach to trading is perfectly relevant, because it's the first question you'll be asked by any investor.

    And in your case it is especially relevant.

    Why?

    Because you have been trading only the long side for the past two years, during a significant uptrend. An investor buying and holding blue chip dividend stocks would have outperformed you, considering expenses and trading costs.

    So the question from any investor...and for yourself...is what do you bring to the party?

    And over the life of your trading career thus far, the answer is nothing.

    But you are young and have learned some valuable lessons, so keep at it. But don't expect to excite anyone with your record thus far.

    Good luck.
     
    #49     Jul 19, 2011

  10. HAHAHA ...... good one!
     
    #50     Jul 19, 2011