yes. no reason to create separate legal entities, etc.
Trading for a family member? Am I legally allowed to trade their accounts?
- Thread starter TheNotSoGreatGatsby
- Start date
yes. no reason to create separate legal entities, etc.
Being 22 I also started my trading with family money through my dad. My first day last year starting October was terrible, I didn't have enough experience and the market had changed compared to what it was the 2 months before. Was overconfident and ended up blowing up 30% of the account [lost 1500] 500 of it fees to suretrader using huge size on day one and since then I have changed my strategy completely. I wish I would have lost my own money, losing my dads money made me feel terrible for months, even with his salary. Starting again in December I'm going to be risking a lot less, and once I've made around 300 dollars will be jumping up in size. It's best to trade small, make money and then risk the money that you've made in the market. I'm imagining you'll feel the same if you lose your grandpas money. I've warned my dad though, even with how much better I've become trading consistently is not easy. I told him to be prepared to lose 2500, but he's fine with it because he thinks I'm going to make it eventually. Just remember to say the golden rule, which is past performance isn't indicative of future returns and to be prepared to lose some money. I can't stress enough about not upping size immediately with his money, even if he's urging you to.
Limited power of attorney. Takes about 5 minutes to set up and it's totally legal from there on out. Having said that, obviously you should be careful trading money for other people, especially family members.
The fact that you said you've never had a losing month in 2 years gives me a lot of pause though. Losing months are part of every winning strategy. I'd love to see documented proof of a trading strategy that hasn't had a losing month since November 2013.
Something doesn't smell right here 0.02$
The fact that you said you've never had a losing month in 2 years gives me a lot of pause though. Losing months are part of every winning strategy. I'd love to see documented proof of a trading strategy that hasn't had a losing month since November 2013.
Something doesn't smell right here 0.02$
Trading ES falls under CFTC not the SEC. The CFTC in general you have to pass exams and register as CTA and do Disclosure Documents that are approved by CFTC to trade other peoples money but you can phone them and ask them.
The SEC has historically allowed some exceptions but not the CFTC. You might trade the ETF under SEC but not the ES. The ES is clearly a commodity. the data feed is a Commodity data feed. and the CFTC definitly has contol over trading on ES.
I think it is 500 shares of the ETF is the same as 1 ES contract. I trade under commodities not stocks. I think the SPY is the etf that is traded. or maybe it is the SPX. but you should trade what is the highest volume most liquid and I am not sure what is used in place of the ES. If you want to know the correct legal answer then phone the CFTC and ask them. it is an 800 number and cost you nothing. get the correct answer and report back here.
my super strong advice is that you should not trade OPM other peoples money. it will destroy you in a flash.
The SEC has historically allowed some exceptions but not the CFTC. You might trade the ETF under SEC but not the ES. The ES is clearly a commodity. the data feed is a Commodity data feed. and the CFTC definitly has contol over trading on ES.
I think it is 500 shares of the ETF is the same as 1 ES contract. I trade under commodities not stocks. I think the SPY is the etf that is traded. or maybe it is the SPX. but you should trade what is the highest volume most liquid and I am not sure what is used in place of the ES. If you want to know the correct legal answer then phone the CFTC and ask them. it is an 800 number and cost you nothing. get the correct answer and report back here.
my super strong advice is that you should not trade OPM other peoples money. it will destroy you in a flash.
Do you know a broker which does this kind of automatic linking?
They're usually called Advisor or Broker Managed Account...many brokers have it.
Just use Google and choose which broker you want to contact about such for more information. You can also review this forum broker sponsor list that's listed all the way at the bottom in the sponsor section to see if those brokers has such...I believe Interactive Brokers is listed as one.
There's also a thread here at this forum (I don't remember the name of the thread) that had an in depth discussion about linked managed account...talking about linked managed accounts. You can use this forum "search" in the upper right corner to find that discussion.
Just use Google and choose which broker you want to contact about such for more information. You can also review this forum broker sponsor list that's listed all the way at the bottom in the sponsor section to see if those brokers has such...I believe Interactive Brokers is listed as one.
There's also a thread here at this forum (I don't remember the name of the thread) that had an in depth discussion about linked managed account...talking about linked managed accounts. You can use this forum "search" in the upper right corner to find that discussion.
Thank you. My question was regarding the special kind of automatic linking which would allow to trade only with one account and all other accounts would automatically do the same (number of contracts on the basis of the size of the accounts, etc.). I know there are brokers doing this on Forex, but I don't know if it exists with stocks or options.
Anyway, I'll try to find the thread, thanks.
Anyway, I'll try to find the thread, thanks.
My advise is to get a job @ Chucky Cheese, that way you can trade during the day and @ nite and weekends you can make money flippin pies, on your break and free time you can eat all the pizza and play all the video games you like...if you blowup your grand pappys account you will at least have attained a skill in pizza making...good luck Danny!