Legal Question Regarding Trading Other People's Money

Quote from feng456:

I dont have money because I'm 23 and I've been living on my own since I was 18. I also never had a "real" job that pays "real" money. So financially speaking, I am ahead of most people my age. Really I'm not sure why you feel the need to try to put me down when I come here asking for help from people.
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If you really care and are really good you should be eating Raman twice a day while you grow your account.
 
no one is taking you too seriously because if you really are smart enough to trade profitably, you would find a way to fund you expenses outside your account.

if you are in the states... there are such things as jobs...

It might require working nights or weekends. But, having a job would also take the pressure off your trading.

you might realize its a good idea to take time off etc.
 
Quote from rolando87:

How short are you to the 20k. if you need like 10 k more, it shouldn't be a problem borrowing that kind of cash at 10% to 15%. ever heard of low interest credit cards, overdrafting your chequing account, line of credit, small personal loans, the list of small loans goes on. if all you need is the cash to trade at Bright just borrow from 5 or 10 of these places. i could prob borrow 15 grand from my banks and credit card companies before even attempting to ask for more funds and i'm in a similar situation as you. find out how much you can make on actual money borrowed, all your left with is the spread of what ROR your earning and the cost of borrowed capital. Remember that if you trade at Bright and go 10x leverage your return or actual cash ie the 20k is multiplied. so say you can make 15% at bright on 200k thats 30k profit or 150% ROI, and the cost of borrowed money might only be 15%. thus making a spread of 135%. of course if your not day trading, forget about trading overnight positions at bright, at least using lots of leverage. if your really confident, just borrow the cash, if you blow up, worst case scenario is you owe less than 20k, you can work that off easily in half a year at any job.
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O MY GOD:eek: I hope that of all the advice the OP has had, he does not take this one...
 
Quote from danielc1:

O MY GOD:eek: I hope that of all the advice the OP has had, he does not take this one...
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Actually it makes complete logical sense..

** Lever the levered leverage.. **

And worst case, you're out 20k + interest.

* Not that I'd recommend this though.
 
Quote from danielc1:

O MY GOD:eek: I hope that of all the advice the OP has had, he does not take this one...
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Laugh all you want but its that's the only way he can make any real money given his account size without getting hired or trading OPM.
 
And who is going to lend to a 23 year old with no assets and no "real" job?

Credit cards charge 20% monthly interest...i can't outperform that.
 
Quote from rolando87:

Laugh all you want but its that's the only way he can make any real money given his account size without getting hired or trading OPM.
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I'm not laughing... The advice you have given is very dangerous for his financial health...

OP: IF YOU DO NOT HAVE THE MONEY RIGHT NOW, THEN YOU DO NOT HAVE THE RIGHT MIND SET TO TRADE ANYHOW.

Getting a grub stake that you can aford to lose is a one of the many things that needs to be done to be a profitable trader. You can get your grub stake with saving and working at a job or by building your own business. Or both... Not by lending money...

Once you have been proven to be succesfull with your own money. In other words, you can support yourself, debt free. Then you can think about lending money to increase your stake or trade OPM. It's all just common sence...
 
Quote from danielc1:

I'm not laughing... The advice you have given is very dangerous for his financial health...

OP: IF YOU DO NOT HAVE THE MONEY RIGHT NOW, THEN YOU DO NOT HAVE THE RIGHT MIND SET TO TRADE ANYHOW.

Getting a grub stake that you can aford to lose is a one of the many things that needs to be done to be a profitable trader. You can get your grub stake with saving and working at a job or by building your own business. Or both... Not by lending money...

Once you have been proven to be succesfull with your own money. In other words, you can support yourself, debt free. Then you can think about lending money to increase your stake or trade OPM. It's all just common sence...
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I think that anyone who wants to start managing OPM for living should overcome a very frustrating period, since probably no one would give him money to manage without at least a proven track record and even if there is such a track record -- there may be many other reasons why not to give money (too young, inexperienced, didn't handle large amounts, possible fraud, etc.). And I don't refer specifically to fang but to anyone who wants to establish a hedge fund or trading operation and concentrating in any investing strategy (whether it's daily trading, long-term investing, etc.).

It really seems to be a catch-22, but in fact there are many hedge fund managers who handle OPM and not all of them are 20 years veterans in the industry with proven track records. So how do these peope yet manage to raise money? Is it connected to their very unique skills? Is it due to their contacts with the right people in the right places? And if you say that OPM is just a big headache (as opposed to invest with one's own money or with a loan) -- why do these people do this at all? I'll be happy to read some thoughts.
 
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