Trying to raise Money

[swtrader]

Quote from zf trader:

Business Type: Stock and Futures Market Making
Looking to raise: $50,000
Manager: ZF Trader
Payback: Monthly dividend of 75% of funds in excess of $50,000, 20% of dividend to fund manger.



The Opportunity:

Market making in the stock and futures market is a very profitable business. Historically it has a return on equity of 45-50 percent. Access to this highly profitable business has been limited by barriers to entry including the expensive exchange seats and having enough capital to provide continuous bids to buy and offers to sell. The recent trend of trading volumes moving from floor traders (the ones you see on the news wearing funny jackets with their hands in the air) to electronic screen trading means that small players can enter the market making arena with the main barrier to success being skill.

A market maker in the stock and futures market attempts to bring buyers and sellers together to make a market run smoothly. Market makers attempt to buy at the bid and sell at the ask in order to profit from the spread. A market maker provides a very similar service to those provided by and auctioneer or a real estate agent; that is getting paid to bring buyers and sellers together.

Special Advantages:

In today’s stock and futures market the main barrier to entry for market makers is skill. I have developed this skill with three years of direct market trading experience and over 100 million dollars worth of trade. I have traded successfully in many markets over different time segments of the 24 hour trading day. Trading will be done multiple un-correlated markets around the clock to trade many conservative limited risk market making strategies.

The biggest expense and at large bank market making divisions is paying for talent. This limits the shareholders claim on profits. This investment will give you a greater share of profits than an investment in Knight Securities or Goldman Sachs. Operating without the overhead of an exchange seat will greatly improve profitability and the profits of investors.

The “Special Sauce”

All market making trading strategies will have strictly limited risk. This means that events like the London Underground bombing will have only limited effect on the overall trading account.

Market making will be done in markets that have a tendency to re-trace themselves. This means that the market covers the same ground again and again so you can get in and out either long or short and get out at a profit. These markets also tend have low insurance (options) costs meaning it is cost effective to limit risk.

The market making strategies employed will not try to predict market direction; however they will try to predict when the market will become more volatile. Strategies will be based on predictions like “the bond market will become more volatile when the pit opens at 8:20 am” or “the stock market will become more volatile Tuesday at 2:15 when the Federal Reserve releases its interest rate decision”. Increases in volatility will be used to exit positions, especially insurance (options) positions that increase in value due to volatility.

Risks:

The primary risk is skill risk. The performance of your investment is dependant on my skill as a manger. Another risk on performance is unpredictable volatility. Things like terrorist attacks, surprise interest rate announcements, special dividend announcements or overly impactful statements by central bankers can cause the markets to become unstable and could have negative impact on trading performance. There are also some regulatory risks and technology risks.

I think you live in a fantasy world

And a dangerous one, at that

100 million dollars trading experience, and you need 50,000 capital

Nothing you say adds up

If these farmers really do have money, they'd be wise to keep it from you

 

[Cre8UrF8]

"market making"

"very profitable business"

"45-50 percent return on equity"

"$100 million worth of trade"(combined buying power dollar amount of each your trades over several years?)


These are false, misleading and fraud. They will get you into some serious trouble. Do you have a RIA?

IT IS A RISKY BUSINESS!!!

 

[BSAM]

Quote from zf trader:

In my next post is the executive summary of my business plan. I have a couple of farmers around 50 years old looking to invest with me......

Farmers ain't that damn stupid.

 

[KevinK]

do you plan on registering?

 

[mhashe]

Quote from zf trader:

................ The guys who are interested are seriously rich (net worth of 10-100 million).....................

I'm in the wrong business. I should buy a plot of land and apply for all the farm subsidies. Nothing like collecting welfare in massive quantities.

 

[nononsense]

Quote from zf trader:

In my next post is the executive summary of my business plan. I have a couple of farmers around 50 years old looking to invest with me. If you could please let me know what you think of it.

I just want everyone to know that I am not looking for money from anyone here. I know that traders by nature are users of capital not sources of excess capital. So please flame me about unclear ideas or awkward wording but not about my intentions

If you're really that good, why begging for farmer's money? Use your own and make a bundle for yourself in a hurry.

 

[murray t turtle]

ZFtrader;
1] Sounds like you are trying to do right thing;however you may want to rephrase some; especially if you are not buying on bid/sell ask, like market maker.

2] Since you mentioned options would also include more regulatory approved language;
stocks & ''options involve risk and are not suitable for all investors''

3] IF you did fine on 33.3-1oo million gross before PDT restrictions;
its always better to understate results like aim to beat benchmark SPX/SPY
Think Curtis Faith'' inflector'' says under promise;
over deliver.

4]More legal work probably needs to be done,much of it with preprinted forms; maybe you can get 5or 10 lawyers to give you a estimate on finishing touches.
Sucessful farmers under stand risk & good & bad years.

Wisdom is the principal thing.



===========================

Quote from Mvic:

Seems pretty unethical to me. You are really not a market maker as you will be bringing so little liquidty to the table, you are really just a trader..

 

[MRWSM]

Don't bet the farm. Do yourself a favor, don't take money from others to do your trading.

 

[Nordic]

Quote from zf trader:

Yes the small amount, I was going to put bigger amount here to avoid criticism but this is why the small amount money. The guys who are interested are seriously rich (net worth of 10-100 million). I wanted to get my foot in the door with a small amount of money, pay them monthly dividends for a while and raise more money from them once they like what I do.

The other reason for the small amount is that I don't think I could handle much more. The leverage that I am going to use will produce ample alfa. I think the farmers are better of pre-paying for chemical to get rebates than having it earn interest in my account.

As far as "not really being a market maker goes" all my trades will be providing liquidity. I am definetly not a "designated market maker" but I think calling myself a market maker gives my investors a better sense of what I am actually doing than calling myself a trader or a hedge fund.

Thanks for all the responses

Not a single Securities or Futures Clearing Firm, Broker Dealer or NFA Member will give you the time of day. It's folks like you why I have to keep taking these F%#ing Continuing ED courses