Trading for others

Discussion in 'Professional Trading' started by Jdesey, Jun 15, 2017.

  1. Jdesey

    Jdesey

    I've been approached by a very good friend of mine who wants me to trade some money for him. I am reluctant, I was a licensed financial advisor for eight years and the stress of managing money for others was very high.

    What are the FNRA rules on this. I thought I heard once if you have less than 20 clients your not required to be licensed.

    What are the regulations on being compensated?

    Is anyone trading for others ?

    Is this just trouble waiting to happen?
     
    Last edited: Jun 15, 2017
  2. algofy

    algofy

    hero! it sure was bound to happen.
     
  3. For that kind of questions, I would definitely ask a licensed financial advisor for better answers.
     
  4. JSOP

    JSOP

    I think it would be best to approach SEC and FINRA and all the applicable regulatory bodies for the answers. They are the ones who published the rules so they would have all the information you need.

    Personally I wouldn't consider it. The stress of managing the money is NOT worth it but that's just my opinion. You never what can happen.
     
  5. birzos

    birzos

    That just doesn't make sense, managing money fantastic, the markets don't accept greed and when you're managing others funds you have to always choose least worst, increases profits. But that only works if you're outside of the MLM, if you're inside it then your statement increases in importance.
     
  6. bln

    bln

    I found out managing OPM improves my trading as I act more professional and disciplinary maner with it, lot as I think through and scrutinise trading decisions and risk. Then trading only my own equity I'm more sloppy and have less an eye to details and diligence. One becomes more professional and disciplinary then dealing with others money.

    The pressure to perform and make money is still the same with OPM or not, so that makes no difference.
     
    Veagle and tommcginnis like this.
  7. tommcginnis

    tommcginnis

    I don't understand how an 8-year licensed financial advisor has any questions at all on this subject.

    #clickbait
     
    soulfire and Gotcha like this.
  8. speedo

    speedo

    ...or a chorus of anonymous posters.
     
    tommcginnis likes this.
  9. Jdesey

    Jdesey

    It was 14 years ago. I'm sure the regulations have changed. FNRA wasn't even an into tea at that time
     
    #10     Jun 16, 2017