How much should I charge?

C

comp652

A friend is going to let me have little bit of money to invest for him on the stock market.
We decided that if I make money I should get a percentage of the total profit and that if I don't make money I won't get anything.
My question is how much do people usually charge for this?
This whole thing is very un-official and is just between the two of us. So there are no major contracts involved.
We’re good friends and the money is little.
This is more a joke than some major serious thing.

Thanks

Comp
 
Quote from comp652:

A friend is going to let me have little bit of money to invest for him on the stock market.
We decided that if I make money I should get a percentage of the total profit and that if I don't make money I won't get anything.
My question is how much do people usually charge for this?
This whole thing is very un-official and is just between the two of us. So there are no major contracts involved.
We’re good friends and the money is little.
This is more a joke than some major serious thing.

Thanks

Comp
More...

My suggestion is to NOT charge your good friend. It's all fun and games now, but as soon as you have a drawdown, I hope you both can keep laughing!
 
Quote from comp652:

A friend is going to let me have little bit of money to invest for him on the stock market.
We decided that if I make money I should get a percentage of the total profit and that if I don't make money I won't get anything.
My question is how much do people usually charge for this?
This whole thing is very un-official and is just between the two of us. So there are no major contracts involved.
We’re good friends and the money is little.
This is more a joke than some major serious thing.

Thanks

Comp
More...
20% is the norm, make the commissions cheap, your friend will have no prob paying you 20% if he is making $.
 
Good advice above.

I would probably not do it. If I did, I would be sure that this is discretionary money this friend could afford to lose. If that's the case, 20% would be the norm; 10% might be a friends and family introductory rate...
 
Quote from comp652:

This is more a joke than some major serious thing.


Comp
More...

Great start!
Why not just spend the money on booze and hooker's instead?
 
Quote from empee:

In this situation you can only lose.
More...

Listen to empee and brownsfan something or other.

I was in a similar situation.

I put together (moderately aggressive) portfolios for several co-workers a few years ago.

Most of them were greatefull and are doing very well to this day. One of them (supposedly my good friend) whined and bitched and complained when someone else's (a girl he was seeing) portfolio hit a minor drawdown. We almost got into a fight about it.

I was done with his shit after a couple of weeks and then told him to just leave me alone about it ... the portfolio recovered and went on to make a substantial amount of money (none of which I ever saw by-the-way). He apologized profously (his reactions had been all emotional), but tough noogies, I'll never do a f*ck*ng thing with him again regarding money ... ever!

I still got some other things in the works ... but in regards to him, f*ck'em! :mad:

Later,

JJ

edit: this shit happend years ago, and I'm still pissed about it! So, ask yourself, is it even remotely worth it?
 
This money is definately discretionary.
The whole thing is not very serious and he couldn't care less if I loose everydime of it in one day.
He was just going to let me play with it for a few years.

Thanks for the 20% and the 10% suggestions.

Comp
 
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