Sorry for the repeating of questions... But I am hoping that I can get the most "up-to-date" answers from the pros. I don't have any financial background. However, Pretending I am able to pull it off and now I am trying to move to this completely new profession, what qualification I need to have? The beginning will be managing a small account that contributed from close friends. The account will trade options on index futures and currencies. It will be less than 250K combined and will be less than 10 account holders. So my understanding is to get a series-3, registered with CFTC before I get it going? Or I can just claim exemption and still be able to do it? Thanks a lot.
Its a bit risky to enter a financial markets without much financial qualification or degree. Most people I know who make a living out of these markets are either previous bankers or accountants. If you do not have these experience, I suggest you will need to study seriously first before investing anything. This market is too risky that loss of money will surely be an outcome . This does not mean you will not be successful, but I would say you will need to do a lot of work in your part. Educate yourself financially especially that pertains to money management. You can start reading some money management tips here: http://www.stock-trading.me/category/money-management/ , it all starts with the basic then gradually progressing to more advanced topics. You can find a lot of resources in the Internet as well as books. Good luck.
The best qualification is that other people trust you. Set it up so that you make money whether you win or lose. Take 2% of assets or something, so the greater your assets under management, the more you make. Another good qualification is that you can actually be profitable managing money. But if you could do that, you would be trading your own account and wouldn't have started this thread.
If you can develop a profitable strategy trading options on index futures and currencies, then trade on your own with a verifiable track record of at least a few years before you attempt to manage funds for others. I'm not sure of all the licenses requried for futures/currencies, however I do believe it's at least the Series 3, which does not require a sponsor/broker-dealer to sit for the exam. Best of luck...
I hope this thread is a joke. If not it is one of the most ridiculous threads on ET. A guy who knows little about the markets (his own words) has taken $250k from "friends" to manage? First of all OP obviously doesn't care about those friends, because if he did, he wouldn't risk their money like that. Which tells us: 1) OP is a sociopath (uses others for own benefit while pretending allegiance) 2) OP probably has the start of a ponzi scheme BHF I can give you guaranteed profitable advice, but only in return for 20% of AUM.
I would think your so called friends would want to see how good you are before committing major money to let you manage. They would have to be dumber than a box of nails to let you handle that kind of money without a proven track record. How much experience do you have trading index futures/options? And have you been trading a REAL account of your own for at least 1-2 yrs to prove you are profitable in your endeavors? We are waiting on you to answer these basic, yet very important questions.......
The ability to effortlessly (but legally) skim your clients accounts via all sorts of fees/charges will be a real bonus.