are you denying an individual the right to risk their money in how they see fit? What are you some kind of commie?
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Soliciting Friends & Family
- Thread starter Sell 'em
- Start date
are you denying an individual the right to risk their money in how they see fit? What are you some kind of commie?
along with the problems mentioned here, they are giving u there money thinking you will make them rich, the biggest error rarely mentioned ,is a new traders attempt to get rich quick,this will cloud your inexperienced mental process and allow you to gamble too often and neglect to restrict your losses, i would suggest you trade with only 10% of the capital, putting 90% in another non traded acct. This will allow you to show them and yourself how u are going to earn for the 1st 6 months,and it will allow them some comfort knowing they are limited to a 10% loss. Once u start and they see any losses they will tell you its gambling and want out.if half of them pull there money after that 1st 10%, you are left with the relatives who can afford to stay,they will have less of a mental influence on you , its very hard to trade without emotion when its not your money, only another trader understands your thought process, So the get rich quick and the family money will be a huge phsycholgical barrier , on top of the unforeseen caterpillar to butterfly transition you are going to have to make mentally to succeed in trading. If you fail ,which is statistically very likely,they will tell you for the next 5 years , while you struggle to figure it out, that you are wasting your time. Your upside being on your own is slim, with the added baggage of emotional money , teensie,,....i would say try a few small accts first, after you have learned about denial and its the markets fault and a million other lies, and then when you have had some success, then ask for backing,so you can trade larger,this cash pool will still be there, if you use it now,it will be very hard to get it a 2nd timeQuote from TraderZones:
One of the worst ideas in history. disillusioned with you, as you having taken advantage of them.
Ha ha, that's funny. Your statement proves you know nothing about managing money because once you start managing for friends and family the psychological dynamics of trading change 20-fold. You simply can't appreciate how much it changes until you actually find yourself in that groove.
I've been managing money for many years and I absolutely, positively, will not manage money for friends and family.
I've been managing money for many years and I absolutely, positively, will not manage money for friends and family.
Quote from timewarner2:
There are no rules for trading for your friends and family.
don't listen to the habitual losers on this site.
go for it, and good luck!
Donât solicit your family , if youâre good you can make money with 1000 dollars , youâll be pressured to make money , and with scared money itâs hard to make anything.
I agree with TraderZones. You seem to be putting the cart before the horse. Make your own money then proceed.
This kid could be the next SAC, or tudor jones. YOU HAVE NOT A CLUE.
I appreciate the discussion. My question specifically related to regulatory issues, and I got one response on that, so thanks.
I don't have an argument with any of the comments on this thread, per se, other than to say they assume things about me that, while reasonable, may not be accurate. I'll just offer the following comments:
A. I've been trading for about a decade, worked for a big bank, and worked independently as an exchange member. Made lots of money, and blown out my share of accounts. I may be many things, but one thing I'm not is a newbie. ( I've been on ET much longer than my handle suggests ... took a second handle for multiple reasons that did not involve any flame wars or controversy.)
B. I've managed family money on a limited scale in the past, so I understand the dynamic.
C. Over the years I've had multiple friends & family ask for help in managing their money, and I've almost always turned them away, because I knew I was still on a learning curve and didn't want to take on that type of risk.
A number of my target investors are semi-sophisticated investors already, and can readily grasp that this would be a small, and highly speculative portion of their total portfolio, something about which I will be very clear.
I don't have an argument with any of the comments on this thread, per se, other than to say they assume things about me that, while reasonable, may not be accurate. I'll just offer the following comments:
A. I've been trading for about a decade, worked for a big bank, and worked independently as an exchange member. Made lots of money, and blown out my share of accounts. I may be many things, but one thing I'm not is a newbie. ( I've been on ET much longer than my handle suggests ... took a second handle for multiple reasons that did not involve any flame wars or controversy.)
B. I've managed family money on a limited scale in the past, so I understand the dynamic.
C. Over the years I've had multiple friends & family ask for help in managing their money, and I've almost always turned them away, because I knew I was still on a learning curve and didn't want to take on that type of risk.
A number of my target investors are semi-sophisticated investors already, and can readily grasp that this would be a small, and highly speculative portion of their total portfolio, something about which I will be very clear.
Sell,
You said you have blown out your share of accounts. If that is the case, a smart family member (granted, not necessarily realistic) would ask why should I give you money to invest when you have shown you can lose it all quite successfully? You better have a good answer for that one. You said you have made lots of money, but have you kept any of it? Are you independently wealthy or at least very comfortable? Questions I would be asking if I were a family member getting your pitch. Just because you have been asked for help in managing money, doesnât mean you are qualified to do so. I am not asking you to tell us this info nor do we know much about your background and that of your family. Just things you better be able to answer as you should expect some tough questions from anyone looking to invest with you, family or not.
Saying you have been on ET longer than the handle suggests and that makes you not a newbie is also a bit frightening. If you have been around much time at all and are successful on your own, you will already know the vast majority of posts here are worthless. I would also suggest speaking to an attorney well versed in this area because just because you can start with little planning or oversight doesnât mean you should. Because once you start losing money, you will surely be called on what some may have thought were half-truths on your part in the beginning if you donât have something in writing explaining what you are doing, how you are doing it and why. Blood is not thicker than money.
Just some things I would be thinking about in your position. Best of luck
TM
You said you have blown out your share of accounts. If that is the case, a smart family member (granted, not necessarily realistic) would ask why should I give you money to invest when you have shown you can lose it all quite successfully? You better have a good answer for that one. You said you have made lots of money, but have you kept any of it? Are you independently wealthy or at least very comfortable? Questions I would be asking if I were a family member getting your pitch. Just because you have been asked for help in managing money, doesnât mean you are qualified to do so. I am not asking you to tell us this info nor do we know much about your background and that of your family. Just things you better be able to answer as you should expect some tough questions from anyone looking to invest with you, family or not.
Saying you have been on ET longer than the handle suggests and that makes you not a newbie is also a bit frightening. If you have been around much time at all and are successful on your own, you will already know the vast majority of posts here are worthless. I would also suggest speaking to an attorney well versed in this area because just because you can start with little planning or oversight doesnât mean you should. Because once you start losing money, you will surely be called on what some may have thought were half-truths on your part in the beginning if you donât have something in writing explaining what you are doing, how you are doing it and why. Blood is not thicker than money.
Just some things I would be thinking about in your position. Best of luck
TM
Do it....take a risk and live your life.
go for it
you must follow your destiny
they can say "no" and they are adults
but you must sell yourself
and get all their money
see if they can even take money out of CC's and give it to you
and do some reverse mortgages
if you make it big they will love you forever
and if you lose it all then tell them it's only money
win win
go for it
you must follow your destiny
they can say "no" and they are adults
but you must sell yourself
and get all their money
see if they can even take money out of CC's and give it to you
and do some reverse mortgages
if you make it big they will love you forever
and if you lose it all then tell them it's only money
win win
Quote from Big Money:
Sell,
You said you have blown out your share of accounts. If that is the case, a smart family member (granted, not necessarily realistic) would ask why should I give you money to invest when you have shown you can lose it all quite successfully? You better have a good answer for that one ...
TM - all your comments are fair, and I can & will address every one for my target audience as necessary. But I just don't care to get drawn into it in a public forum. Anyway, I wasn't asking for go / no-go advice here. (This has been rehashed on ET plenty enough times, correct?) But thanks nonetheless.