Raising Capital

Discussion in 'Professional Trading' started by Hawkeye Ron, Feb 14, 2003.

  1. tfmoney

    tfmoney

    aluminum
     
    #21     Feb 20, 2003
  2. If you don't have the capitol go prop or take a loan from the bank.Trading someone else'e money is a no no in my eyes!
     
    #22     Feb 20, 2003
  3. Rob a bank without a weapon. :D At least you won't physically hurt someone.

    FRuiTY :cool:
     
    #23     Feb 20, 2003
  4. bottom line is, you have to trade your own money to realize what it is like when you make mistakes. start small, trade consistently (not just a few days a week, you must trade every day) set high goals, but that are attainable. once you get a track record, then branch out and let people know that you are in the business of trading others' accounts. get licensed properly too!

    Pete
     
    #24     Feb 24, 2003
  5. After building a methodology and a track record raising capital is the next tough endeavor. Right behind them is dealing with regulations and the legals. Trade well and the money will come though.
     
    #25     Feb 28, 2003
  6. gnome

    gnome

    To attract $$$ from the public, you'll need a substantial track record... turning $5K into $7K in 2 years won't mean much. Without a history of performance, the rest is academic.

    Suggest you try to find a high profile, audited contest... somthing like the Robbins Tranding Championship.
     
    #26     Feb 28, 2003
  7. Andre

    Andre

    Understanding how crucial it is to have enough capital to trade with is something that has really come full circle with me. I find myself wanting to scalp. Or that my current observations that I think I can exploit are scalping type positions.

    Alas, I'm woefully undercapitalized to trade like I'd like. However, I see myself as more of a 2 day to 2 week swing trader anyway. So at this time of my life, my lack of funds is instilling discipline. I actually feel good about being forced to trade small while I learn more.

    I'll say this also... in reading many books on traders and trader interviews, I really understand now how they would simply quit trading and work to get capital, or sell everything to get a stake.

    I'm not looking at selling my house. And we just refinanced- I thought long and hard about trading with the equity we took out. But I didn't do that, we consolidated debt as planned.

    Nope, instead I am looking at limiting even more of my lifestyle, and selling some stuff, like the electric guitar and amp that I hardly use, to increase my capital. I work out of my house, so this is an ideal way to learn to trade... I have no pressure to support myself on trading yet. If you swing trade, it can be a 2nd job with no salary, even if you work for someone else.

    André
     
    #27     Feb 28, 2003
  8. bone,

    What kind of trades did you make with 10K in the bond pit?

    Lots of undercapitalized traders want to trade futures, I think they don't realize how leverage can influence your decisions. Good luck trading futures with 5-10K it would have to be pocket change for you not to feel the pressure.
     
    #28     Feb 28, 2003
  9. I vote with the "learn by doing" crowd. Scrape up $2000 and open a basic cash account. Buy 50 shares of something and give it a shot. :cool:

    Better to risk a little now, and learn how to manage losses right away. A 25% whacking will feel pretty bad to you if it happens... but you'll learn from your mistakes (hopefully) and you can replenish your losses with income from a "real job" to keep trying...

    In addition, your name won't be mud with those you borrowed money from. Better to take a licking in private over your account, w/o anyone knowing how many screwups you made. Guard your credibility!

    Then, when you know what you're doing, b/c you *are* profitable, and have the brokerage statements to prove it, talk to others about raising money.
     
    #29     Mar 1, 2003
  10. strat3x

    strat3x

    Never sell your guitar, dude!
     
    #30     Mar 1, 2003