How to become a money manager?

[raik07]

Hi all, I've been paper trading stocks for a while now with moderate success. After reading the Market Wizard books, I've been keen on becoming a money manager. Some traders make a lot of money through a management fee and performance fee.

If I want to become a wealthy money manager, should I focus 50% of my efforts on attracting capital from high net worth individuals? AKA should I know how to sell my services as a trader (namely, building wealth for other people)?

I've read books on selling, like Brian Tracy's Sales Success, The Art of Closing, etc. It seems there are certain things that a trader should be able to do in order to get the checks coming in. For instance, a trader should be able to establish himself as an expert on the markets (this is a sales principle that Brian Tracy talks about in his books). I want to be seen as an authority when it comes to trading. A trader should also be able to build rapport with the prospect. People don't write checks to people they don't like. A trader should also be able to ask for the sale (ie, be able to close the sale).

It seems trading is only half of being a successful money manager. Some of the market wizards make money management seem easy, when in reality it seems more difficult than just trading alone. For instance, you have to deal with accounting. Marty Schwartz talks about this in his book "Pit Bull." You'll have clients who want to withdraw funds from time to time and you must oblige.

What do you guys think?

Hi!

I recommend that you continue operating with your own capital for 1 or 2 more years.

If after that you are profitable and consistent then you can think about the idea of managing other people's money.

Imagine that you are not prepared and you are just having luck, it would be a total disaster.

 

[Scataphagos]

Hi all, I've been paper trading stocks for a while now with moderate success. After reading the Market Wizard books, I've been keen on becoming a money manager. Some traders make a lot of money through a management fee and performance fee.

If I want to become a wealthy money manager, should I focus 50% of my efforts on attracting capital from high net worth individuals? AKA should I know how to sell my services as a trader (namely, building wealth for other people)?

I've read books on selling, like Brian Tracy's Sales Success, The Art of Closing, etc. It seems there are certain things that a trader should be able to do in order to get the checks coming in. For instance, a trader should be able to establish himself as an expert on the markets (this is a sales principle that Brian Tracy talks about in his books). I want to be seen as an authority when it comes to trading. A trader should also be able to build rapport with the prospect. People don't write checks to people they don't like. A trader should also be able to ask for the sale (ie, be able to close the sale).

It seems trading is only half of being a successful money manager. Some of the market wizards make money management seem easy, when in reality it seems more difficult than just trading alone. For instance, you have to deal with accounting. Marty Schwartz talks about this in his book "Pit Bull." You'll have clients who want to withdraw funds from time to time and you must oblige.

What do you guys think?

Unless you have money and "connections" (others with money), it's a very long shot.

1. You need a verifiable track record with real trades, probably at least 3 years... and even if you can do that... the fact that you "did it with your own small money" won't mean much to those with big money.

2. You need other people's money to manage. First way to get that is to have some big sponsor bundle the money for you... like a big brokerage house or established money manager. Second way is to attract it yourself... very difficult.

 

[SunTrader]

trendofmakingmoneyisyourfriend and potential clients as well.

Without that there is no need to worry about accounting and sales ... and ... and ...

 

[deaddog]

Unless you have money and "connections" (others with money), it's a very long shot.

1. You need a verifiable track record with real trades, probably at least 3 years... and even if you can do that... the fact that you "did it with your own small money" won't mean much to those with big money.

2. You need other people's money to manage. First way to get that is to have some big sponsor bundle the money for you... like a big brokerage house or established money manager. Second way is to attract it yourself... very difficult.

Enter and place well in the United States Investing Championship.

 

[kmiklas]

Ha! First, stop trading paper and start trading with real money, preferably your own. Get some skin in the game! Any capital holder will laugh in your face if you show them nothing but paper profits. Would you hand over $100,000 or more to someone who had nothing to show but Monopoly money?

Check back with us in two to five years, showing at least a 12% annual return.

I have heard of people who amuse themselves conducting imaginary operations in the stock market to prove with imaginary dollars how right they are. Sometimes these ghost gamblers make millions. It is very easy to be a plunger that way. It is like the old story of the man who was going to fight a duel the next day.

His second asked him, “Are you a good shot?”

“Well,” said the duelist, “I can snap the stem of a wineglass at twenty paces,” and he looked modest.

“That’s all very well,” said the unimpressed second. “But can you snap the stem of the wineglass while the wineglass is pointing a loaded pistol straight at your heart?”

With me I must back my opinions with my money. My losses have taught me that I must not begin to advance until I am sure I shall not have to retreat. But if I cannot advance I do not move at all. I do not mean by this that a man should not limit his losses when he is wrong. He should. But that should not breed indecision. All my life I have made mistakes, but in losing money I have gained experience and accumulated31 a lot of valuable don’ts. I have been flat broke several times, but my loss has never been a total loss. Otherwise, I wouldn’t be here now. I always knew I would have another chance and that I would not make the same mistake a second time. I believed in myself.
https://www.gutenberg.org/files/60979/60979-h/60979-h.htm

 

[Scataphagos]

Enter and place well in the United States Investing Championship.

That would be a start. Is the contest still going on?

 

[Witorishan]

learn, analyze all your actions and extract all the advantages from them, this is the only way to achieve something

 

[murray t turtle]

Almost every new trader I came across online or in person thought trading was easy. (I frequent social trade channels a lot.)

Well, I haven't heard from either of them anymore. They seem to disappear faster than your friends in mmorpg's.

%%
LOL. IT is easy/with Monopoly Money.
WITH 80% not even able to beat a benchmark like SPY. Trading is one of the more difficult ways to make money, investing may differ.
Other peoples money[opm] is very different from making a long term track record for yourself..................................................................

 

[deaddog]

That would be a start. Is the contest still going on?

As far as I know. You can google for 6 month results.

 

[Smilingtrader]

Three years ago I took part in a competition to receive money for management. The competition was run by a prop firm that traded stocks on the NYSE market. I paid money for participation, the competition lasted a month. I had very little experience back then and failed. But I saw how others can trade and it inspired me. Therefore, in order to become a capital manager, you need to find such a prop company, pass a competition, prove that you can make money and you will be given half a million to manage.