How much should I charge the clients?
- Thread starter trend2009
- Start date
No way would I do such involving "relatives and friends". First of all, I think when dealing with "relatives and friends"...you should take a close look at their financial situation to ensure this is money they can afford to lose. In other words, if your trading goes southward and they lose this money, they won't have any financial hardship nor feel like you've put them in a tough financial situation.
Yet, if you have a rich uncle with 100k sitting around in the bank doing nothing except gaining some interest...yeah...trade the money if he "asked you too". However, if you have a relative or friend struggling financially or unusual debt amounts...you shouldn't take a single dollar from them even if they begged you too or try to convince you "its money I don't need right now".
Too many folks get involved in trading or investing with money they cannot afford to lose or with money they will soon need in the near future as in within the next year or so.
Mark
I'm going to assume that whey you said...
since they are struggling you are saying they have "financial problems".
That alone is a red light (big warning) not to trade their money because it's money they CANNOT AFFORD to lose. It's as simple because these are situations where they will usually "need" you to return their money in the near future.
*** Also, can you clarify what you meant when you said you "offer to help them". ???
*** Thus, did they contact you first and specifically asked you to trade their money or did they contact you and asked for money and your reply was to trade whatever money they can give you ???
My point is that you should make sure you're not soliciting them to trade their money as your way of helping them so that they will "struggle less"...whatever that word struggle means to you.
Yet, if you're determined to trade their money and you're just trying to determine the fees...as I mentioned...determine the financial situation of each person considering you seem to imply you know how much their struggling. Next, determine which relative or friend has the LEAST need for you to trade their money and start with just that one person only. If things go well after 4 - 6 months or so...allow a few more to join the manage fund.
Then if things continue going well...bring in the remainder of the relatives & friends assuming you have not been soliciting them with trading their money as your only way of "helping them".
Mark
1) I have a system which based on the record of 5 years, is very stable. I do not have losing month for the last 50months.
2) I believe my track record will keep on for a long time since the system is very sound. that is why I am bold to offer reimbursement in case of loss, and I want to help them out of struggling situation.
if I do not have this stable record, I would not take any money from relatives. I understand the risk especially related to friends and relatives.
2) I believe my track record will keep on for a long time since the system is very sound. that is why I am bold to offer reimbursement in case of loss, and I want to help them out of struggling situation.
if I do not have this stable record, I would not take any money from relatives. I understand the risk especially related to friends and relatives.
If family and friends put up, say 100k, you'll have use of their margin. That should suffice for a fee = use of free money. Frankly with any luck you could build an account for yourself and not risk any of your own money. When all is said and done you can hand them back their original 100k and tell them you tried and you'll have trading capital with what you made trading the margin balances.
You seemed determine to trade their money and you didn't answer my questions.
*** Did they solicit you first to trade their money as a way to help resolve some financial problems or did you offer help first via your trading to help your struggling relatives & friends ???
Your answer really determines if you should allow your relatives & friends to be involved. Yet, as mentioned, if you're determine to do such for them...start with just one relative or friend and see how it goes for awhile because any profitable veteran trader knows that trading your own capitol is A LOT different than trading someone's else money especially those that can not afford it if you were to hit a drawdown...
Every profitable trader will eventually have a drawdown. Most can usually weather the storm and get back on track on growing the profits but can your relatives & friends weather the storm too without panick and without ill feelings towards you especially in light of the fact that they know (expectations) you've been profitable so far ???
My advice so far has been via experience and I'm from a family of traders (retail and professional).
Mark
Ok...so make sure you put that in agreement (written & signed...no verbal stuff) that you will reimburse them any money you lose of their original entry capital assuming that's what you meant when you said...
if i trade their money, the only way is that I take all possible loss of their original capital.
Good luck with that.
Mark