Ty, Yes, I think that's a really major understated issue. I almost feel fortunate not to trade OPM in light of this. Volume quickly becomes an issue. There's also, for me, an extra weight or responsibility trading OPM, perhaps like driving someone else's car, I don't feel OK about taking risks that are valid but that fall outside normal business limits.
Where can I go for funding?
- Thread starter Hookway
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Ty, Yes, I think that's a really major understated issue. I almost feel fortunate not to trade OPM in light of this. Volume quickly becomes an issue. There's also, for me, an extra weight or responsibility trading OPM, perhaps like driving someone else's car, I don't feel OK about taking risks that are valid but that fall outside normal business limits.
Ty for these insights. 6% is impossible by my standards. I sometimes use creditcard and resent paying 2% pm. However, my creditcard is really sharing the risk in the same way.
I think this addresses a key point, that's hard to express. From my POV, with my own money, I can't afford to sustain LT losses, and I don't get them. Whereas an investor trusting someone else has to factor in a sizeable risk.
I've seen this in the 2ndary loans market. There might be a very safe scenario (low LVR etc) but is outside bank limits (eg old age of the developer) and if I know the guy involved there's effectively no risk premium - I know that. But an outside investor would not know that in the same way and has to charge a high risk premium.
What I'm trying to say is that OPM factor in unnecessary unknowns that have to be "paid for", and often amount to an unfeasible solution.
Yes, I think it does matter. Even on mainstream trades on big instruments (and I'm not big) the market can give me only partial fills on even 100k trades. And then chase has to begin. Trading x10 would be a bother.
I like to trade afterhours sometimes, and that's very trade size dependent and yet is not "some temporary niche"
I think you've summed it up there, in the 2nd paragraph. Yes, I do need to hold positions overnight and rely on time and other factors to turn a profit not necessarily related to day trading skill. You're probably right that I'd need to "pound the pavement networking and building relationships". It'd be naive to think otherwise.
But rationally, I would've thought there'd be some avenues for LT decent results to be awarded funds. And the fact(?) that there isn't, is very telling about the financial industry. Trading is not really the meritocracy we like to believe it is. Reward for merit is only within limited networks.
< the greater his odds are of going a more traditional route >
What's an example of a more "traditional route"? What is the "traditional route" into trading?
Yes, I'm genuine and can provide funded past results, your comments on FO make a lot of sense. I'm based in Auckland, New Zealand. Do you really have to be in the same location as a FO backer and rub shoulders with them?
Nice idea, unfortunately, I have few wealthy friends, and the ones I have, are either very conservative or have a kind of superiority complex towards their finances and / or me. I showed one my results and he just got angry with me, or me showing off, or like it was a challenge to him.
I like Marty Schwarts’s story in Pit Bull. He started trading with other people’s money and learned how managing clients is another full time job. First he had to charm them to trade on their dime, then he had to comfort them through drawdowns. His playbook is to come up with the initial cash and trade the hell out of it. Then when the account gets too big to scale he pulls out of it for the finer things in life. Great book if you haven’t read it.
"Yes, I'm genuine and can provide funded past results, your comments on FO make a lot of sense. I'm based in Auckland, New Zealand. Do you really have to be in the same location as a FO backer and rub shoulders with them?"
Yes, you'll have to start with their geography. Risk management and some level of compliance are going to want you in a common location. Generally, nobody hires numbers unless you're coming off of a proven desk.
Backers are much more challenging to connect with but can be much more rewarding for the right trader. It's not for everyone.
You should also consider limiting your social media exposure.
Yes, you'll have to start with their geography. Risk management and some level of compliance are going to want you in a common location. Generally, nobody hires numbers unless you're coming off of a proven desk.
Backers are much more challenging to connect with but can be much more rewarding for the right trader. It's not for everyone.
You should also consider limiting your social media exposure.
Thank you for the lead to a good read! I'll get it, seems relevant. I think, for me at least, it would be a full-time job to manage people, and I'd rather thrash my own account.
There's another underrated aspect. I feel maxxed out just trading my own coin. I paper trade as well on a platform that publishes and authenticates results but even that's too much bother at times. I doubt I have the excess energy for it all. I like to keep it small light and simple.
And I can barely keep my own records OK. Things that some people think should be no bother are a hassle for me. I have limitations. And I grew up in an earlier era. I now don't adapt well to other platforms and tech.