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!
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
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.
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.
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
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.
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. 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.