What qualification to manage money?

Why are you guys always so negative? Maybe he is a really smart guy. Maybe his friends are all really smart guys who can afford 25k each without batting an eyelash and want to take a shot with him. You don't know the situation. All he asked for was whether he could legally get this off the ground. My response , is , yeah, probably, since it seems to qualify for the exemption.

A lot of what you say could be valid. The quickest way to losing a friend is losing them money. But if the guys come into the deal with their eyes wide open, and understand they can get wiped, and if the poster works hard and has a gift for numbers, he can succeed. Everybody starts somewhere, and Wharton and MIT, while being nice things to have, are no prerequisite for success as a trader.
 
I have no background in medicine but my friend agreed to pay me 25K to remove his appendix because hospitals are so expensive and he doesn't have health insurance. I've always been interested in science and stuff and think I can pull this off without killing him if I study and practice on a rat first. Can I legally do this?
 
Quote from Roark:

I have no background in medicine but my friend agreed to pay me 25K to remove his appendix because hospitals are so expensive and he doesn't have health insurance. I've always been interested in science and stuff and think I can pull this off without killing him if I study and practice on a rat first. Can I legally do this?
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Let the rat practice on you first...if the rat fails and you survive...give the rat a 2nd chance...halfwit...:mad:

NiN
 
Thanks for everyone for the advises and recommendations. At first I did not get any response so I thought nobody wanted to answer. But today I checked back and surprise to see there are 3 pages of replies.

I have been in the market for very long time although my profession is not in trading. I have been maintaining a track record that seems ok. My idea of starting a fund is to really doing something I have passion with and also at the same time contribute to help the people around me.

I do understand there is very great risk losing money of my friends and losing them as a result. I have (and I will) made it very clear and show them all the risks associate the deal. I am not planning to share any of the profits (At least for the first round of friends) except for maybe covering my cost.

The reason I am asking the question is to be able to incorporate into a legal identity so we can cover the tax part of the deal. I don't want to operating on each of theirs account so i prefer to pool the money and start a company.

Still looking for advices from all of you.
 
Reply to this as a summary to all the questions...

1) 8 years trading futures/options.
2) Yes, real trading of 8 years. However I was not really doing it as a serious thing until about 4 month ago I decided to give it a serious try. And yes it is profitable and have enough sample to prove it is not because of luck.

Thanks.

Quote from southbeach4me:

I would think your so called friends would want to see how good you are before committing major money to let you manage. They would have to be dumber than a box of nails to let you handle that kind of money without a proven track record.

How much experience do you have trading index futures/options?

And have you been trading a REAL account of your own for at least 1-2 yrs to prove you are profitable in your endeavors?

We are waiting on you to answer these basic, yet very important questions.......
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Not sure why earlier post is not showing...

Thanks for everyone for the advises and recommendations. At first I did not get any response so I thought nobody wanted to answer. But today I checked back and surprise to see there are 3 pages of replies.

I have been in the market for very long time although my profession is not in trading. I have been maintaining a track record that seems ok. My idea of starting a fund is to really doing something I have passion with and also at the same time contribute to help the people around me.

I do understand there is very great risk losing money of my friends and losing them as a result. I have (and I will) made it very clear and show them all the risks associate the deal. I am not planning to share any of the profits (At least for the first round of friends) except for maybe covering my cost.

The reason I am asking the question is to be able to incorporate into a legal identity so we can cover the tax part of the deal. I don't want to operating on each of theirs account so i prefer to pool the money and start a company.

Still looking for advices from all of you.
 
If you are managing less than $400,000 and for less than 15 investors you do not need the Series 3 as you will qualify for a small pool exemption under CFTC Reg §4.13(a)(2). Even though you are exempt from registering with the CFTC you are required to file your exemption with the NFA -- go figure.

Be careful what states your investors reside in. In California, for example, if you manage money for even one person you must be a Registered Investment Advisor.

Just a word of wisdom...if you lose money for your friends there is a pretty good chance it will damage your friendship and trading money for friends and family is much harder than trading money for strangers or trading your own account. Be sure to weigh these facts before you start and be up front with your investors that they should be prepared to lose 100% of the capital they are investing, which is not to suggest you will lose 100%, just that they need to know it's possible that can happen.
 
Quote from bhf:

Not sure why earlier post is not showing...

Thanks for everyone for the advises and recommendations. At first I did not get any response so I thought nobody wanted to answer. But today I checked back and surprise to see there are 3 pages of replies.

I have been in the market for very long time although my profession is not in trading. I have been maintaining a track record that seems ok. My idea of starting a fund is to really doing something I have passion with and also at the same time contribute to help the people around me.

I do understand there is very great risk losing money of my friends and losing them as a result. I have (and I will) made it very clear and show them all the risks associate the deal. I am not planning to share any of the profits (At least for the first round of friends) except for maybe covering my cost.

The reason I am asking the question is to be able to incorporate into a legal identity so we can cover the tax part of the deal. I don't want to operating on each of theirs account so i prefer to pool the money and start a company.

Still looking for advices from all of you.
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if you insist on going forward use an ib advisor account.
 
Should have read, "...from registering with the <b>NFA</b> you are..."

Quote from the1:

If you are managing less than $400,000 and for less than 15 investors you do not need the Series 3 as you will qualify for a small pool exemption under CFTC Reg §4.13(a)(2). Even though you are exempt from registering with the CFTC you are required to file your exemption with the NFA -- go figure.

Be careful what states your investors reside in. In California, for example, if you manage money for even one person you must be a Registered Investment Advisor.

Just a word of wisdom...if you lose money for your friends there is a pretty good chance it will damage your friendship and trading money for friends and family is much harder than trading money for strangers or trading your own account. Be sure to weigh these facts before you start and be up front with your investors that they should be prepared to lose 100% of the capital they are investing, which is not to suggest you will lose 100%, just that they need to know it's possible that can happen.
More...
 
Quote from TradetoWin:

Its a bit risky to enter a financial markets without much financial qualification or degree. Most people I know who make a living out of these markets are either previous bankers or accountants.

If you do not have these experience, I suggest you will need to study seriously first before investing anything. This market is too risky that loss of money will surely be an outcome .
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such hogwash, it's always risky to enter the markets.
the great thing about markets is that you DON'T NEED any qualification to succeed. You do need to have a thirst for learning.

I say people are responsible enough to decide whether they want to invest or not. However it's very difficult to raise money even from friends. A lot of people you could tell them you make 100% per year they still wouldn't invest, unless perhaps they actually see the money you make because say you drive a Ferrari , live in a mansion, so on (that's why embezzlers gain clients because they fake everything) . That's where the qualifications come in , because most people have no other yardstick, they need to see you have qualifications to have confidence. They 'd rather go with a CFa, MBA who makes 7% a year than with some guy coming out of nowhere making 40% a year .


I am in a similar situation as the OP, I have a question as well what kind of money is enough to build a credible track record on ?

Is a 10 K model account credible, or you need to do it with 50 or 100 k minimum ?
 
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