After you called someone mentally challenged because he called your sample size of ONE into question? I don't think so. Do your own research or stay uninformed. Your choice. I am done on this topic.
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Raise capital for algorithmic trading?
- Thread starter centaurus
- Start date
In my very first post, the suggestion was to take a loan if you are good at trading."Why won't this dumb algo, designed by professional finance people tested on millions of data points, lend money to my home made amateur trading algo?"
FWIW I have borrowed money from family members, but to only bridge real estate transactions over short well defined time periods.
I've also had bad experiences of lending money to friends, and as the proverb goes losing both friends and money.
Personally, I think it's usually better to treat it as a gift. Then if they repay you it's a bonus.
(Not tax advice!)
It's very stressful trading with OPM. I doubt many people on this thread have enjoyed the pleasure of losing 1bn in a week. I can tell you it's not much fun.
When you actually know the people involved and will have to look them in the eye at Aunt Mauds funeral and explain how you lost a chunk of their inheritance on a speculative trading venture... it's much worse. Even though the sums involved are much smaller.
Agreeing to pay a 7% coupon every year irrespective of performance creates yet more stress, and makes it more likely you will do something stupid that will hasten your implosion.
Anyone who thinks any kind of trading profit is effectively guaranteed, is fooling themselves. I have been on ET for 7 years now. I have seen many such people come and go in that time. I doubt many of those who left did so because they had retired from trading with a vast fortune. Most likely they blew up.
I note from your profile you have also been here for a long time- since 2014 (I initially assumed from your post count that you were a relative newcomer). So clearly you are one if the lucky ones. But as others have said, you shouldn't extrapolate from that single data point to all possible futures. You are also assuming the OP has the same likelihood of success as you did, which again is a huge assumption.
Finslly saying someone is definitely a loser is very risky unless you are sure they are. Otherwise it just weakens the argument...
GAT
No where am I assuming OP has the same likelihood of success as me. I am merely suggesting a possibility for their consideration.
What I am assuming, (apparently contrary to you) is that OP is not retarded, and thus is able to figure out for himself whether taking a loan makes sense for their situation.
Your and others attitude is patronizing and infantilizing, assuming that everyone on this forum needs to be protected from the concept of taking a loan because apparently they are too stupid to not blow up their whole family every time.
Maybe you should just be advising people never to trade in the first place, because hey, most traders lose money right? And if you lose money, your kids will starve to death. "Trading? Dear God No.."
I mean, what you are saying is ridiculous on its face. The fact that banks regularly give unsecured loans at around 6-7% interest means that the loan failure rate couldn't possibly be more than a few percent, never mind "MOST" (>50 %) as you claimed. Banks aren't in the business of losing money.After you called someone mentally challenged because he called your sample size of ONE into question? I don't think so. Do your own research or stay uninformed. Your choice. I am done on this topic.
Plus as I tried to explain to you, loans for trading are trivial to guarantee repayment on because the money is always liquid. Just pay back before you get a margin call.
Glad to hear you are done on this topic. This is likely my last reply to you anyways since I'm getting tired of the way your responses repeatedly ignore most of the actual points I've attempted to make to you.
What you apparently refuse to accept is that there are other things in life than money. There are relationships, trust, and honesty. Otherwise if it was all about money you should perhaps haul drugs for cartels because the profit margins beat any of your own trading. If there was no risk of getting caught or damaging valuable relationships for good then everyone should act purely profit maximizing. But that is not the reality of this world. I don't think you can see that or accept that. Hence any further discussion on this particular topic with you is futile and worthless.
Nothing in trading is guaranteed, even in your own trading. When you borrow money and your first trades produced losses you would already be under water. Hence your point on acting upon margin calls is ridiculous.
Nothing in trading is guaranteed, even in your own trading. When you borrow money and your first trades produced losses you would already be under water. Hence your point on acting upon margin calls is ridiculous.
I mean, what you are saying is ridiculous on its face. The fact that banks regularly give unsecured loans at around 6-7% interest means that the loan failure rate couldn't possibly be more than a few percent, never mind "MOST" (>50 %) as you claimed. Banks aren't in the business of losing money.
Plus as I tried to explain to you, loans for trading are trivial to guarantee repayment on because the money is always liquid. Just pay back before you get a margin call.
Glad to hear you are done on this topic. This is likely my last reply to you anyways since I'm getting tired of the way your responses repeatedly ignore most of the actual points I've attempted to make to you.
Right, because what says you love and trust someone more than refusing to lend them money? (Sarcasm)What you apparently refuse to accept is that there are other things in life than money. There are relationships, trust, and honesty. Otherwise if it was all about money you should perhaps haul drugs for cartels because the profit margins beat any of your own trading. If there was no risk of getting caught or damaging valuable relationships for good then everyone should act purely profit maximizing. But that is not the reality of this world. I don't think you can see that or accept that. Hence any further discussion on this particular topic with you is futile and worthless.
As per usual, it's all doom and gloom with you. You can't even imagine anything positive. Borrowing from family enhances my relationships and trust, it doesn't destroy them. I'm happy to pay them and they're happy to be paid a nice fat interest rate for helping me out. Its great for everybody involved.
Uhhh.. it's called leverage. You don't trade with 100% borrowed money. Are you even thinking through these replies at all before you post? I'm actually starting to wonder if I'm being trolled now...Nothing in trading is guaranteed, even in your own trading. When you borrow money and your first trades produced losses you would already be under water. Hence your point on acting upon margin calls is ridiculous.