Why successful day traders seek investment?
Page 1 of 613 123 LastLast
Results 1 to 10 of 24

Thread: Why successful day traders seek investment?

  1. #1
    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

  2. #2
    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.

  3. #3
    Since....

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

    Should they lose, that's not his cash.

  4. #4

  5. #5
    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?

  6. #6
    Quote Originally Posted by ;
    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.

  7. #7

  8. #8
    A successful daytrader - contradiction in terms.

  9. #9
    Quote Originally Posted by ;
    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.

  10. #10
    Quote Originally Posted by ;
    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. .

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
This website uses cookies
We use cookies to store session information to facilitate remembering your login information, to allow you to save website preferences, to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners.