Trouble managing an account.

Discussion in 'Psychology' started by yigal, Oct 18, 2007.

  1. yigal


    Hi Everyone,

    I am a profitable trader, and recently started managing an account for my friends. For some reason I started missing "my" trades and got too nervous to take even a few ticks drawdown. Instead of making 12-15 ticks daily I started to lose the same 12-15 ticks. Anyone had the same problem, how did you deal with it?
  2. Stop trading!!!!

    You are probably trading iwthout a complete trading and business plan. You risk losing more money now that the pressure is on to perform for your friends. You will probably cause more damage than generate profit trading this way.

    If you were trading specific setups on your own and are profitable, then it shouldn't make a difference if you are trading bigger (assuming the market is liquid enough) or you are trading someone else's money. You already know that there is a positive expectancy on your trades.

    You are not confident enough to be trading someone else's money. Trading someone else's money puts an enormous burden on you and brings a huge psychological/ego factor into the equation. You need to keep your ego out of this as much as possible and just take the next setup that you have developed some confidence in.

    Again, I strongly suggest you move that money into a high yielding treasure account and let it sit while you figure out what you will look for in the market to trade consistently. It is better that your friends collect interest than to lose money which can crush your confidence and destroy your relationships with your friends.

    If trading is hard, then trading family/friends' money is extremely hard. You will be dealing with issues at work as well as in your social life in that situation.

    I urge you to stop and think hard about doing this.