Quote from Epiphany:
Haha, funny this came up. One of the 3 friends wanted me to invest money for his roommate. But I turned the offer down as I did not know the roommate.
I am not sure why previous posters are so against managing money for good friends: I chose to only manage money for friends (and not random clients) because I get a higher sense of satisfaction making money for people I care about.
When you invest for friends, they have faith in you. I lost a large chunk of profits and they did not even bat an eye, and now I have recovered.
Others pointed out that if you lose their money, the friendship might sour. Well, that is easily solved, just guarantee their initial investment. That is what I did, and now that I have made money for them, they calmly accept any drawdown from the equity peak as just playing with house money: they are still up net-net.
