I will respond soon.
A company of top-tier traders for a cause: would you be interested?
- Thread starter TraderGreg
- Start date
Why does it have to be done within a corporate / institutional level? Why don't the employees (traders) just do it within an individual basis? Why would you want to pool the capital and ability of others to make a charity? I find it skeptical towards this plan that there may be a hidden agenda...
If this was approached in real life, it will light up a red light saying, "Fraud Alert". Not saying you're trying to start one up, I'm only being a little skeptic. No offense.
Seriously... what's the agenda?
Oh for goodness sake, I think the guy is only 18 yrs old, learning to trade and has a dream.
Lighten up and give him time and room to develop his thoughts. His agenda is becoming a top trader and then teaming up with others to do something worthwhile for the disadvantaged.
As usual Jack complicated and derails simplicity.
Lighten up and give him time and room to develop his thoughts. His agenda is becoming a top trader and then teaming up with others to do something worthwhile for the disadvantaged.
As usual Jack complicated and derails simplicity.
Good issues being raised here.
I appreciate your effort Jack, but the goal of this thread is to determine the possibilities and problems associated with starting such a company.
Interesting questions.
1 - I think more capital can be raised (later in post), and I work at home and hate it.
2 - I always wrestle with this one. Should I live a more normal life being employed and doing fine, or should I spend my money on better things than making rich people richer or keeping AIG alive? Should I take a risk to do something great when I don't need to do absolutely anything and be rich as hell? I think I want to try.
This is very generally my original plan for how funding would work. Shares of profits after taxes:
Traders' cut: 5-10%
Put away for company expenses, wages, expansion: 30%
Charities/endowments/etc.: 25%
Remain in account: rest
I really don't know much about how this would actually work and how much is needed for what (probably better to do a total asset-based percentage for expenses and wages), and I figure I would do more research into how firms do it, but it's a good starting point for discussion.
The economics don't make sense, and that's why I started this thread. If I am willing to give up my earnings to make a difference, then maybe others do too.
Funds: (a) more traders allows for more shorter-term trading on more instruments, so the ceiling on shorter-term trading is much, much higher before accepting mediocre investment returns than if I did it all on my own. (b) company can bring and build other talents like swing, macro, and good programmers, increasing profitability than if I tried to do them myself. (c) traders can learn from each other
Research: I enjoy and I'm good at trading and managing things, and I'd rather spend my time on that then doing research. I think a small team of researchers could find the best companies/charities/causes for the money, doing more and more in-depth research than I am willing to do when I could be doing what I'm better at
I appreciate your effort Jack, but the goal of this thread is to determine the possibilities and problems associated with starting such a company.
Interesting questions.
1 - I think more capital can be raised (later in post), and I work at home and hate it.
2 - I always wrestle with this one. Should I live a more normal life being employed and doing fine, or should I spend my money on better things than making rich people richer or keeping AIG alive? Should I take a risk to do something great when I don't need to do absolutely anything and be rich as hell? I think I want to try.
This is very generally my original plan for how funding would work. Shares of profits after taxes:
Traders' cut: 5-10%
Put away for company expenses, wages, expansion: 30%
Charities/endowments/etc.: 25%
Remain in account: rest
I really don't know much about how this would actually work and how much is needed for what (probably better to do a total asset-based percentage for expenses and wages), and I figure I would do more research into how firms do it, but it's a good starting point for discussion.
The economics don't make sense, and that's why I started this thread. If I am willing to give up my earnings to make a difference, then maybe others do too.
the company would create more funds for contributions as well as research.
Funds: (a) more traders allows for more shorter-term trading on more instruments, so the ceiling on shorter-term trading is much, much higher before accepting mediocre investment returns than if I did it all on my own. (b) company can bring and build other talents like swing, macro, and good programmers, increasing profitability than if I tried to do them myself. (c) traders can learn from each other
Research: I enjoy and I'm good at trading and managing things, and I'd rather spend my time on that then doing research. I think a small team of researchers could find the best companies/charities/causes for the money, doing more and more in-depth research than I am willing to do when I could be doing what I'm better at
I didn't do my homework as you noted.
Here is an early post of his last June:
"I have been studying the market for what I estimate to be around 300-400 hours in the past 7 months. I am opening my trading account in the next few weeks, after my last sessions of paper trading. I will have four years of college during which I plan to grow my trading account, and be trading professionally immediately after college. My current goals are 2% a week on average for the 4 years, partly due to the fact that I am starting out with only $1500, and commissions are $10 per entry and exit, and partly because I know I am still an amateur. Anyway, over four years, I see (1.02^50)^4 coming out at 52.48 times my principal of 1500 for a trading account totaling $78700 roughly. Withdrawals should not be necessary as I will hold a part-time job, although I am not sure about taxes. I am still a dependent as I am in college. Any input will help. Thanks."
His most recent update is on the level of those he responded to. I mistakenly thought that he was going to be doing something. But, as you say, he is just phishing regarding learning to trade as the first hurdle.
Sorry for disturbing your thread greg.
I think you're talking about the remaining in the account part, which would be the trader's account so he/she could continue trading that portion of returns.
And yes it's just something I thought of in a few seconds, and I don't pretend to know anything about managing a trading company. I was thinking of working for one for a few years just to see how it can be done.
Ok Jack, you win.
I'm a college student and was wondering if this idea was feasible down the road as I continue to improve my trading.
I have never been "phishing," and have never asked for help learning to trade, just occasional advice. I've always stated that I wanted to give more back to the forum than I ever gave, and I have done that by posting some charts for people trying to learn in my other threads.
I am profitable now, and have been since January.
Honestly, I was just trying to find out if this idea was possible, and was expecting (and hoping) to get inquired and roasted until I found out if it could be done.
Apparently, certain ET members are dedicated to making sure that can't happen. (And by the way, I admit it's clever to take probably what was one of the first things I've ever posted - you have some brains in that demented head of yours).
I'm sorry if this was an inconvenience, and I will unsubscribe to the thread. Don't waste your time.
I worked out in my above numerical example that even with stellar returns, the model won't work unless each trader contributes a large amount of sum. I think the end point is that you haven't been able to show the benefit of creating this endowment rather than just have everyone contribute on their own. There's no real economics of scale here in managing your own assets. That's why the charitable trust world is set up so that asset management firms will manage an endowment's asset for them, and achieve scale.
By the way, did you just call me Jack? Some people around here don't take kindly to that
By the way, did you just call me Jack? Some people around here don't take kindly to that