Legal Question Regarding Trading Other People's Money

[krazykarl]

Quote from feng456:

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.

It's 20% APR - if you can't out perform that you shouldn't be trading.

 

[DT-waw]

the funny thing is:
many managers with 5+ years track records blow the accounts every year.

with OPM you HAVE to be great at marketing.
trading is not important, not even a bit.
marketing , contacts is ALL that matters.

if you don't have it, just trade for yourself.

 

[Rationalize]

=> If your fund manager has a marketing department, then you are not a very good investor.

 

[rolando87]

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...

Common sense maybe but its a pussy mindset to have. Yeah go join the other sheep till you build a trading stake. Real pros have confidence in their abilities thus it only makes sense to borrow as much now in order to get ahead quickly.

Also feng1234 its not 20% monthly credit card interest, its 20 % yearly. You can easily find 3 or 4 department stores /supermarkets that will give you their credit card and a 3k limit. That's the easiest place to start, your not very open minded with raising capital and I suggest you be. Already you have the attitude that nobodys gonna lend u shit so why bother.

 

[Lights]

Disagree. I won't name firms but piggybacking off the top consistent earners is common practice at money up props.

Quote from Maverick74:

As a guy that runs a regional office for a prop firm, I want you to listen to what I say very carefully. There is not a prop firm in this country that cares about your strategy, they just want your commissions. Prop firm owners are the most cynical people you will ever meet in your entire life and most believe that if you are making money, you are just getting lucky. These guys bet on sure things. That's commission dollars.

 

[Lights]

then get a real f'ing job for a few years and earn it and then put it at risk. do all young people think like you these days

Quote from feng456:

apparently u need 20k to work for don bright...i dont have 20k

 

[the1]

Bingo! MSFT doesn't make the best OS but they are Marketing Champions. Same goes for trading OPM. You can be an average trader but if you're top shelf at marketing yourself you'll be very successful.

Quote from DT-waw:

the funny thing is:
many managers with 5+ years track records blow the accounts every year.

with OPM you HAVE to be great at marketing.
trading is not important, not even a bit.
marketing , contacts is ALL that matters.

if you don't have it, just trade for yourself.

 

[Lights]

You are way too small to even be a gnat on the radar. I'd worry about those things when you are trading 7 and 8 figure $.

Quote from feng456:

I am considering also applying for prop firms. The thing that really worries me is what is there to prevent them from stealing my systems?

 

[rmorse]

Quote from feng456:

Hi all. I am wondering if anybody knows of any legal ramifications if I were to go out today and start offering to trade for either friends or family. I know absolutely zilch in the area so any advice would be good.

I am considering it because I am undercapitalised and despite a decent % performance the actual amount is too small to be useful for anything.

Thanks all.

I borrowed $25k from family in 1985. That started a career that lasted 25 years of profitable trading that supported my family very nicely. If you believe in yourself, and have a solid business plan, I say do what you have to in order to succeed. Just have realistic expectations for you and your investors....good luck

 

[nLepwa]

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.

Haha

That is exactly what lead America to the terrible economic situation it is in.
It amazes me how the US government won't let you drive with a broken glas but THREE years after the 2008 crisis it still allows individuals to over-leverage to hell.

To OP, make sure you keep your personal financial situation healthier than Americas...

Ninna