About financing for trading

long said:
OPM is where it's at though. You can get 1000%+ return on YOUR investment while only getting 10% return on the fund. The goal is to not lose money and have as much under management as possible. Worst case scenario is you lose other peoples money and shut the fund down. The 2/20 standard is bananas.
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How many of the ETer are good enough to get OPM run a fund and make millions? I don't know any.

By the way, you don't need to amass $100 M to live well.
 
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JFL said:
you say its hard to get OPM, thats basically the reason of this post. Could you please tell me what are the options for OPM that you know? Just to evaluate if they are realistic for me?
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I wish I can help but sorry I can't.

I am just an amateur retail. Never worked in the financial business, IB, hedge funds, banks...

I started out with nothing, no clue about trading/investing except the concept of live below your means. I was able to quit my day job early because of the magic of compounding. So I am telling you the one path that worked for me and my kids.

The only OPM I know are friends and family but I do not want to risk their money so always refused their requests, except my kids'.

To each his own and I sincerely hope you will find your pot of gold at the end of the rainbow.

Good luck.
 
JFL said:
About the second option? Could you tell me more? I have no knowledge about It.
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join a prop firm that will front all or some of the capital for you to trade. You will be paid a percentage of your earnings.
You have to be hired first.
You have to follow their risk management rules.
 
newwurldmn said:
join a prop firm that will front all or some of the capital for you to trade. You will be paid a percentage of your earnings.
You have to be hired first.
You have to follow their risk management rules.
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Yes so. This IS where I wanted to go? What do you know about this process of getting hired but these firms? Thanks! I need to evaluate
 
JFL said:
Yes so. This IS where I wanted to go? What do you know about this process of getting hired but these firms? Thanks! I need to evaluate
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the forum is full of threads about this topic.

there are two types of firms: those that require you to post capital and those that don’t. This forum’s topics typically focus on the former as the latter typically requires experience (trading for a bank, hedge fund) or a newly minted college degree from a target school (like Harvard or Columbia).

do a search for prop firms and you see get a ton of info.
 
newwurldmn said:
join a prop firm that will front all or some of the capital for you to trade. You will be paid a percentage of your earnings.
You have to be hired first.
You have to follow their risk management rules.
More...
Have you worked with a prop firm?

If you have please share your experience.

Thanks.
 
ironchef said:
How many of the ETer are good enough to get OPM run a fund and make millions? I don't know any.

By the way, you don't need to amass $100 M to live well.
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I have no idea how good people here are at trading. But getting OPM is all about networking and sales skills. My track record isn't smooth enough to attract investors and frankly I don't have the pedigree to get me into a hedge fund position. I would absolutely like to have a 2/20 deal with some OPM though.
 
long said:
I have no idea how good people here are at trading. But getting OPM is all about networking and sales skills. My track record isn't smooth enough to attract investors and frankly I don't have the pedigree to get me into a hedge fund position. I would absolutely like to have a 2/20 deal with some OPM though.
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Reading "Pit Bull" by Marty - Buzzy - Schwartz dissuaded me of that thought.

I always sleep well at night.
 
long said:
I have no idea how good people here are at trading. But getting OPM is all about networking and sales skills. My track record isn't smooth enough to attract investors and frankly I don't have the pedigree to get me into a hedge fund position. I would absolutely like to have a 2/20 deal with some OPM though.
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You are an honest man. I respect that.

However, managing OPM is not a bed of roses and a money printing machine. My sense is in a hedge fund, only a very few partners get most of the pie, the rest of them are not that different than us, working a day job. On top of that, you have high carrying (living) cost, you can't drive a clunker, dress like a hobo and live in a trailer home, so it is hard to live below your means.

Trust me, if you truly have an edge, you don't need OPM

Never mind, few understand my points....
 
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