Why successful day traders seek investment?

[mubio]

Hi All,
Excuse me for the maybe ignorant questions.

1) Why is it that the customary route of a successful day trader to want to show his track record for the express purpose of finding investment?
2) Certainly a fantastic day trader can continue to utilize the huge leverage available in FOREX to keep to take larger positions? So why is it that you need customers' money whenever you have access to so much leverage?
3) If you did utilize customers' money then you'd need to share your profits at least 50: 50 with the client so that you wind up with less money than using leverage?
4) Certainly it is more hassle also? I mean you'd have to be enrolled as a money manager and also there could be paper work?
5) Could somebody explain to mepersonally, maybe with a simple example how it's valuable to go after handling other people's money in FOREX when you've got access to so much leverage?

Thanks in advance for any replies.

I would love articulate and detailed replies as opposed to one liners that will not explain each the above.

Thanks Again

[juanbammema]

Yeah, it is more hassle but you do not need to be licensed or registered, you will find just restrictions on the number of people you'll be able to solicit per year. Plus, many brokers have a function to connect accounts (Managed Account Trading) so any places you input into your account are automatically entered at precisely the same time in all your customer's accounts (it's possible to correct position sizes automatically based on client account sizes).

You do not divide 50-50, you cover (or re-invest) that your customer's cash depending on the percentage gain and the size of their investment. If you're trading with $10,000 plus they offer you $2,000 and you do 50% this season, you maintain $5,000 and they receive (or re-invest) $1,000 minus commission.

The best reason I can think about to exchange OPM (Other People's Money) is in case you lack capital and you want to make a living earlier than later. Should you over-leverage your account you're setting yourself up for a huge loss (eventually), however using OPM you risk the identical percentage and you earn a commission. If you can earn 50% for clients they'll be happy to provide you with a 20 percent (on profit) commission. Or follow the 2 and 20 Hedge Fund version.

Rob M.

[pepo656]

Since....

Should they win, they will get 10%-50% of client's profit.

Should they lose, that's not his cash.

[mubio]

Thank You for the replies!

[oxmcus]

You take investors money so you can become richer much quicker.
Why can you attempt to be a billionaire from $100 dollars if you can take countless investor money and become a billionaire much quicker?

[gambo33]

because.... Should they win, they will get 10%-50% of customer's profit. Should they lose, that's not his cash.
Well Stated. Unfortunately that is the truth that is true.

Over the past years all the self-appointed fund managers and signal providers I have observed onnigeriaforextradinghave failed. At the conclusion they've all walked off with customers' fees and risked nothing... Except for their reputations, but once they usually establish a new bucket store under a different username.

[pnolami1]

no money no honey lol

[jesules1990]

A successful daytrader - contradiction in terms.

[chiquiMB1984]

Why successful day traders seek investment? Merely speaking. . .It's a stepping stone.

1. Showing your market prowess can help to develop confidence. As a poor day trader, paying the bills is good, but you lack the recognition of others tapping you on the trunk that brings itself to the societal pitfalls of individuality.

2. Leverage with a broker that will continue to cover, is not the same leverage since the majority of the average Joe's have access to. Typical 500-1000:1 tapers dramatically when you hit on the 10,000 mark. Here is the illusion to maintain suckers investing in their dime accounts.

3. If you can not afford to trade higher than dimes, acquiring a larger account size feels a lot like padding. But when you begin to recognize that leverage to get a Real Account, is not what it's for the micronigeriaforextradingtraders, it's a much different ball game.

4. It's not a hassle. It's a whole fucking Nightmare!!!!
When others view your stats, they begin to view the moon when you haven't even obtained a leap from the ground. If their money is at stake they need a fucking update every 15 seconds as to why they aren't wealthy yet. And then. . .there is working to get an actual brokerage trading with controlled accounts. . .you feel the wrath of all the clients with an account manager who wants an update after each time you press on the buy/sell button!

Don't even get me started on trading money for family and friends. . .make them 15% and it's insufficient. Lose 2% and you've effectively stolen their life savings and they now have to let out their basement to feed the children.


5. Trading other individuals money has benefits if you are mathematically challenged. Your nuts aren't always on the line so absorbing a large loss is not quite as painful. The down side to this is that no one will always pay you more than 10-15% on account unless you are 100% confidential. And even in this event, refer to points 4 and 3.

Following the Better than Average Trader has gone this path they will value their absolute market silence and the fact that they can really trader smaller accounts with higher leverage to make more than they could with larger accounts with lower leverage only taking a small fraction of their gains.

Sure...

There are exceptional incidences in which trading OPM makes sense for a little while. . .but longevity is not among these.

Like most jobs.

You do what you have to do, until you can do what you want to do.

In the case of any trading, it actually boils down to what you can manage to do.

When I started managing funds, I had to perform a full-time job to make ends meet.
When I upped my percent and proceeded prop, I could not deal with all the fruions and discussions.

When I discovered that trading my dough had a lot less tension and made me a lot more money...
I continued this path.

Let all others find out where they land in the same scale.


All in all...

I don't regret a single measure.

Without having an understanding down, you can never enjoy up.

[Mogpi]

quote Simply speaking.. .It's a stepping stone. 1. Showing your market prowess helps to build confidence. As a lowly day trader, paying the bills is great, but you lack the recognition of others patting you on the back that lends itself to the societal pitfalls of individuality. 2. Leverage with a broker that will continue to pay, is not the same leverage since the majority of the typical Joe's have access to. Typical 500-1000:1 tapers dramatically when you hit on the $10,000 mark. This is the illusion to maintain suckers investing in their dime accounts.... Great post magix.
Hey if you don't mind I'm gunna pinch your last line for my touch. .

[mubio]

Thank you all for the Ongoing replies

[gambo33]

quote Merely speaking.. .It's a stepping stone. 1. Showing your market prowess helps to build confidence. As a poor day trader, paying the bills is great, but you lack the recognition of the others tapping you on the back that lends itself to the social pitfalls of individuality. 2. Leverage with a broker which will continue to cover, isn't the same leverage as the majority of the average Joe's have access to. Typical 500-1000:1 tapers dramatically when you hit the 10,000 mark. This is the illusion to maintain suckers investing in their dime accounts.... Excellent insight, ! So true...!

Especially No.4: It is not a hassle. It is a fucking Nightmare!!!! ... Do not even get me started trading money for family and friends... create them 15% and it's insufficient. Reduce 2% and you've effectively discharged their life savings and they now have to rent their basement to feed the kids.

[egubamoxn]

quote4. It's not a hassle. It's a total fucking Nightmare!!!! When others view that your stats, they begin to view the moon when you haven't even taken a leap from the ground. If their cash is on the linethey need a fucking update every 15 seconds as to why they aren't rich yet. And then. . .there is working for an actual brokerage trading with managed accounts. . .you feel the anger of all of the customers with an account manager who wants an update after each time you press the buy/sell button! Do not even get me started trading money for buddies... Outstanding... I have gone, believing the matter...

Greatest
D.P.

[chiquiMB1984]

quote Great post magix. Hey if you don't mind I'm gunna pinch your last line for my signature. .

quote Excellent insight, ! So true...! Especially No.4: It's not a hassle. It's a total fucking Nightmare!!!! ... Don't even get me started trading money for friends and family... create them 15% and it's insufficient. Reduce 2% and you have effectively stolen their life savings and they finally have to let out their basement to feed the children.
quote Outstanding... I've gone, thinking the thing... Greatest D.P.

[Gemeoxys]

There is just one and just one business model which can make you money with forex

1) loe a gimmick (example We discovered that a long lost trading manual written by W D Gann
2) Show some favorable trading track record (demonion is ok and values can be doctored as required )
3) Develop a membership base. You have to invest and put all of your effort in marketing
4) For the edifiion of your enthralled followers, then make sure that you do a live trading session once a week - real money, as a marketing expense. .
5) and to cap it all, always sell sell sell; (books, videos, instruction, appliions; etc...)

That is how money is created in forex if using your own FX brokerage isn't an option. .

[aljc01]

Successful day traders don't seek out investment.

They're their own boss.

[AynMogemgas]

quote Simply speaking.. .It's a stepping stone. 1. Showing your market art helps to develop confidence. As a poor day trader, paying the bills is great, but you lack the recognition of others tapping you on the back that brings itself to the societal pitfalls of individual identity. 2. Leverage with a broker which will continue to cover, is not the exact same leverage as the majority of the typical Joe's have access to. Typical 500-1000:1 tapers dramatically when you hit on the 10,000 mark. Here is the illusion to maintain suckers investing in their dime accounts....
I heard something with that post. It reaffirms my perspective of staying private, selling nothing, and not carrying any money from friends or family.

[vanesamg]

Why successful day traders find investment? Hi All, Excuse me to the possibly ignorant questions. 1) Why is it that the customary path of a successful day trader to want to demone his track document for the express intention of finding investment? 2) Surely a good day trader can continue to utilize the massive leverage readily available in FOREX to continue to take bigger positions? So why do you want clients money when you have access to this much leverage? 3) If you did use clients money then youd need to talk about your profits at 50: 50 together with the customer so that you find yourself using... The response is straightforward.

They are successful for some reasons. One of these and incredibly important one is because they do not over leverage their accounts. Otherwise they would not be prosperous.

[loliglcf]

quote The answer is straightforward. They are effective because of some reasons. One of them and very important one is since they do not over leverage their accounts. They would not be prosperous. And to be an effective trader then we need to continue to improve trading skills are good, with improved skills will allow us to improve the trading results, then why try to take advantage of the demo account or demonion competition to become a successful trader

[juanbammema]

I suppose this thread is dead, but I am just replying again because it showed-up in my'Subscriptions' section. Another fairly valid reason for trading OPM is authenticity - not only to family and friends (and if someone thinks that should not matter then they're just a young, dumb kid), but to banks and anyone else you may want to take you seriously. A bank won't offer you a loan for that beach house or Ferrari if you do not'get paid' somehow (with OPM) - and then end, eventually beginning an LLC (I am assuming you're from the US) will give you a paycheck.

[Kanija78]

I don't think so! Because, a little trading capital isn't a problem for the pro traders! An expert trader can easily identify the chance of market! He or she is ready to recoup their trading equity so smartly! I see, pro traders are trading with enough assurance.

[Hemm]

I don't believe so! Because, a little trading funds isn't a problem for the expert traders! A pro trader can easily identify the opportunity of market! So, he or she's able to recover their trading equity so hastily! I see, expert traders are trading here with sufficient assurance. I got your point. But they are not used to by the little balance. So, regardless of having much live experience they cannot earn more pips by slight balance.

[alipol]

You are referring to the hedge fund version, employing an argument of the proprietary fund version. They are two distinct companies. If you would like to exchange other people's money, you're a hedge fund. If you would like to trade your money, you're a proprietary fund.

[pkloveo1]

Definitely, it is more hassle but you do not need to be enlisted or authorized, there are only confinements on the amount of people it is possible to request every year. Also, most brokers have a capacity to join files or Managed Account Trading. So any places you enter your record are naturally input in the meantime in the majority of your customer's records. You are able to alter place sizes naturally in light of customer account dimensions. Demoning your market skill creates certainty. As a humble casual investor, paying the bills is fantastic, yet you don't have the acknowledgment of the others praising you that matches the societal entanglements of individual character.