I guess it depends on the bank roll and the liquidity of what the trader trades. But I don't think a blanket statement can be made that it would be illogical for a trader to do this (trade with other people's money).
Hiring a day trader
- Thread starter JTX1
- Start date
I guess it depends on the bank roll and the liquidity of what the trader trades. But I don't think a blanket statement can be made that it would be illogical for a trader to do this (trade with other people's money).
Funds exist because the majority of people are either too lazy, or too stupid, or both, to take control of their own finances.
A fool and his money are easily parted, I know, but not the way you might think
J_S
100K is pocket money for good traders. I am a very small fish but I trade much more money.
I had an own fund for clients, years ago, and closed it after one year. Just the time needed to generate enough own capital from commissions. From then on I traded only my own money and took all the profits. And no worries with CFTC, NFA and clients anymore.
Yeah, I know all good traders start out trading millions, but this was just an example.
Right, less hassle, but the original question wasn't about hassle. But I agree.
What do you consider to be a "good trader"?
Is it the guy behind the program that kicks in in the last 2 min of normal trading hours, trades ES contracts in the hundreds for a tick or two, or, might it be the guy who sits down with his own money for a few hours, waits until the time is right, and places one or two trades that makes many ticks, maybe 12 times more, or more, than the guy who has risked a load of someone else's money?
J_S
That's the good one as he demonstrates to understand the market, if not you cannot stay in a trade for 1-5 hours without losing your pants.
Making a few ticks in a very short time looks more like gambling. If that trader would understand the market he would stay longer in it and take bigger profits. The fact that he does not do that proofs he does not understand the market (and is gambling). Every trader trades his own abilities and is limited by his disabilities. Trading longer periods gives also more posibilities to trade bigger sizes without influencing the price.
Travel and go watch the trader trade in person with your own two eyes but only after the trader has sent you verification (whatever that is to you) of profitability and after you've sent the trader verification of what you're trying to do.
Account size (funds), trading instrument and even length of profitability will have an impact on whom you work with.
For example, someone that's been profitable for 10 year and making a 6 or 7 figure income per year and enjoys being independent trading their own account isn't going to be interested in you. In contrast, someone making a 5 figure income for only a few years may be interested especially if he/she plans to go OPM one day or manage a small fund.
Lastly, have a conversation with your lawyer and check with any organization because the amount of money may determine if the trader needs to be licensed. If you're just talking about a small amount of money...contact your broker to see if they offer "manage accounts". Other than that, I don't recommend getting involved with such unless you truly got money to burn.
Maybe try to read between the lines.Wow. So many crazy, even hostile posts & none of them answering the original question, let alone being helpful.
If OP gets to know why people give money and why people take money, OP can answer the question himself. Knowing motivation is very important to know the REAL reason why people accept money to trade.
So most postings are useful.
Sellers (daytraders) always have sales stories. Buyers (investors) should see thru these stories. So buyers should always be suspicious.
You perhaps need to start by being very aware (as the potential pool of traders you seek to hire will be) of companies like TopStepTrader who fund accounts for day-traders and pay them 80% of the takings.
That's perhaps your competition?
You might also want to look at how they identify, select and fund their traders, and ask yourself whether you'd employ someone they wouldn't fund, and if so why?
I'm trying to look at it, also, from potential the applicant's perspective and wondering what you can offer her/him that TST can't.