Since, my family & friends would like to trade using a lump sum, however we can not do that by ourselves. Hence, we have been discussing on the pooling of money for the same. Among ourselves, we can manage around $100,000 with each of us (4 in number), pooling in $25,000 each.
However, there are a few questions, which we would like to clarify, before we move on ahead, as follows:
Is the pooling of money beneficial & legal? Since, we would like to have enough money to trade a trend following system combined with a bond and e-mini system to give us diversity.
What are the legalities & paper work required among friends?
How do we distribute the profits & losses so we can take care of tax issues?
Please let us have your valuable feedback. Moreover, if you have some more points, which are not, mentioned as above. Please do let us know. The same shall be beneficial for all of us as many people out there just do not have the money to trade, maybe the pooling issue can help.
