Starting/Working for a Hedge Fund

Hi guys

I was wondering if there was anyone out there who is willing to give me any advice on how to start off a career as trader. I have business experience for 3 years, sadly not in the financial market but in property.

If there is any advice anyone can give me it would greatly appreciated.

Thanks
 
Is this legal?

*Set-up an offshore company (HongKong by example) and trade with the money of the company

*Set-up an offshore company (HongKong by example) and trade with the money of the company. You sell a stake in the company to different investors.

*Set-up an offshore company (HongKong by example) and manage other people's money. Accounts are opened by these people and the company just manages them.
 
As soon as BX and FIG went public, that was the clearest sign that the hedge fund world was ending. Easiest thing I ever took notice of...

All these funds will go away one by one until there are none left, except maybe a few that you could count on 1 (maybe 2) hands.

Hedge funds are part of the glut and capital misallocation in the system. One way or another, they will be purged and reallocated.
 
Quote from maildigger:

Is this legal?

*Set-up an offshore company (HongKong by example) and trade with the money of the company

*Set-up an offshore company (HongKong by example) and trade with the money of the company. You sell a stake in the company to different investors.

*Set-up an offshore company (HongKong by example) and manage other people's money. Accounts are opened by these people and the company just manages them.
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Hi there,

Sure it is legal! The CFTC and SEC have no business in HK. They can't touch you. But you should know you're still regulated by the SFC of HongKong. You need to apply for a type 9 license. Might as well do it in US because HongKong is really really well regulated. Better than the bureaucrats here in the US I'd say.
 
Quote from ProfitTakgFool:

If you use lawyers, accountants, administrators, and other misc costs you're looking at about 40-50k to get off the ground. I took a different route....I got a bunch of friends and family together and said, "Hey, here's my performance, I'm starting a hedge fund. Are you in or out?" I didn't get many no's. I then hopped on over to www.moneymanagerservices.com and created all my paperwork myself for $250. I did all the accounting with the exception of tax prep. My total startup costs in the first year were around $1k. In essence, I did an incubator fund with actual investors and bypassed the route that most hedge funds take. Once I had a year under my belt, and some profits I turned the legal work over to an attorney who charged me $17k. I would not accept an investor I didn't know until I had the PPM/Contracts done professionally. I still do the accounting myself to keep my costs low but my taxes are farmed out.
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Hi First of all I'd like to thank you for starting the post....it's a ton of helpful info. I was wondering who did the back office work for you the first year? Under 1k for back office work?
 
Quote from ProfitTakgFool:

It would take weeks and probably months to fully explain my strategy and even then you may not get it because it is very intuitive and somewhat discretionary. The thing about trading....you can put 2 different traders on a 26/9 MACD cross and get 2 different results. It's not the stratey that makes the strategy successful, it's the trader. So, if you went to Soros or any other big player and asked them their strategy and they actually told you I don't think you'd be able to duplicate their results but all strategies require judgment.

At any rate, if you want to dig a little deeper into my strategy here is a start. One thing I will tell you about it....I break a lot of rules and I will never place a physical stop:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=112126
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I absolutely agree with never placing a physical stop. Stops are your saving grace but will also slowly kill you. I use use options as my stop and place my trade slightly away from the market price basically straddling the market and letting the marketing decide where to go. My stop is the difference between the two orders and is usually 1% of my account....
 
I agree and disagree. Close stops will kill you over time but I gotta have a disaster stop. I typically keep my stops 5-10 points away from the market depending on the level of volatility but I rarely lose money by having my stops triggered. I take the loss manually most of the time.

Quote from lasner:

I absolutely agree with never placing a physical stop. Stops are your saving grace but will also slowly kill you. I use use options as my stop and place my trade slightly away from the market price basically straddling the market and letting the marketing decide where to go. My stop is the difference between the two orders and is usually 1% of my account....
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