Why do you trade your own moneyy?
- Thread starter Pathus
- Start date
I agree with Ripley. I don't want to pay 80% of my profits to someone else. In addition, OPM means headaches of dealing with investors, which is avoided by trading your own money.
Most importantly, trading OPM means finding a way to generate good returns on vastly greater amounts of money, which I'm not convinced I would be able to do. It is much easier (for me, anyway) to make a 50-100% return on $1M in assets, than to make a 20-25% return on $50M, for example. However, if I were smart enough to know how to generate ~20% annual returns on level of assets of $100-250M, then I would try to manage my own hedge fund, no doubt about it.
Most importantly, trading OPM means finding a way to generate good returns on vastly greater amounts of money, which I'm not convinced I would be able to do. It is much easier (for me, anyway) to make a 50-100% return on $1M in assets, than to make a 20-25% return on $50M, for example. However, if I were smart enough to know how to generate ~20% annual returns on level of assets of $100-250M, then I would try to manage my own hedge fund, no doubt about it.
Its not 80% of your profits. Its 80% of the profits you made using other peoples money. So you would rather keep the 100k you make on a 10% return trading your own million versus ONLY KEEP 20% of the 10% profit on the 100 million you are managing? Gosh, you only make 2 million because you have to give the other 80% to other people. THIS SUCKS! Oh and you get another 2 million in management fees. I do not understand your logic.
