How do I talk her out of it, I caught her watching Cramer on GASP! and reading motleyfool. I guess folks (even my wife) think trading and making money is easy. So how do I talk her out of it? What are some good points. Or should I just hand her 10K in trading money, giver a cash (non margin account) and let her at it? something like etrade pro.
Stocks? Explain to her that even a vast majority of value stocks have been thrown over the edge in the mania, and the pay grade shorting stock futures isn't as profitable. Tell her options are a mathematician's hobby and a sucker's losing endeavor, and since she's neither you just don't want to see her get discouraged. If you love her and aren't threatened by her emotively or intellectually, teach her index futures trading; else otherwise, continue to make her stay around with her hand out-stretched. lol Seriously, you have to have a pretty solid relationship to trade with a partner or with a partner around who also happens to be trading. If you've scaled back positions due to drawdowns and your wife, partner, &c. seems not to be able to lose, just for an example, I don't care how collected you think you are a scotch wont be able to be enjoyed. Conversely, hell hath no fury than a woman jealous or scorned. (love ya, ladies, but it's true). I'd think long and hard about it. Certainly brushing it off as a joke isn't a healthy first step, imho.
tell her you will trade her money for her and give her 90% of the 'profits'. she can do nothing and make money. it's very tough to convince somebody not to play or quit playing. but if she can make money or have the skills in this game, why quit. the question can she trade and make money. is she trading as a 'hobby' or profession. if she is watching cramer and wasting time on motely fool sites she isn't trading like pro.
Why try to stop her, or asume she'll fail? Try taking a different approach, encourage her... you might be surprised.
Who knows, it may not be a horrible thing. When I first started trading back in the mid nineties Toni watched me for several months and thought that shit she could lose money just as easily as I could and might as well give it a try. Over time she's become a good trader, could support herself with it, and it definatly did not end up as a bad thing for us. Of course we are no longer together, but that was more my fault and had little to do with trading. On the other hand, it is nice to have something thats yours.....so i suppose it can go either way, but if your wife is truely interested and you think she has what it takes to make it then the only thing you might have on the line is your ego (which can be a bitch)
She never traded or got involved in any thing regarding the stockmarker. So she has no experience period. If she made money, I would obviously be happy for her.
Set up a Sim account. Tell her its real. Have her give you the money. When she loses you keep the money. You be the house. If she gets lucky for awhile, just give her some of that prime ET advise.
My wife trades her own IRA. She's very determined, wants to do it herself, and is a longer term type of investor. I don't know what your problem would be with it. What I try to do is talk to her about general concepts....risk/reward, stop orders, etc etc. But she makes all her own decisions. Sometimes I cringe...but some of those times I was cringing I should have been doing what she did. LOL. OldTrader
My wife bought KKD early and ate glazed donuts all the way up and all the way down. My first short was @ 22, naw just kidding couldn't get any. mmnnnnnn