I Want To Trade Other People's Money (OPM) ..... Maybe Yours
I've been trading for about 7 years now, I've had my ups and downs but lately (3 years) I have been doing really well. I developed a Covered Call strategy that has been working very well and has been delivering constant profits even during the mini market corrections.
I want to capitalize on it and trade other people's money. I can make more money this way then i ever could by myself, and I can help my investors by making them above average returns every month. I'm extremely excited about this! I get returns of about 3-5% a month and I buy protection so I wont loose money. I have had months where I didn't make a profit, but never a loss. And I use margin.
However I don't know where to start.....
A Hedge Fund type set up would be ideal, however I don't want to exclusively deal with "Accredited Investors." I didn't finish college, and I have never been employed in the financial industry.
Mutual Funds I'm told cant trade any type of derivatives (options) so that wont work either. Plus I dont think that mutual funds can charge commission. I want to be paid only on commission from the profits I generate from my clients.
So basically I want to know what my options are.....
1. I need to be able to take in investors of all income levels, not just accredited investors.
2. I need to be able to charge a commission for the profits I generate.
3. I need to be able to incorporate stock options into my trading.
Someone please help! Thanks
Can you explain your covered call strategy to me? I have some dry powder I'd be excited to pay 50% incentive on for 3-5% a month. I think you and I, we can do business. Please advice.
Da fuq u talkin' 'bout?
Why don't you consider a prop desk? There are a ton of options trading firms in Chicago. Especially with audited results (even a 6 month track record may suffice) they will give you tons of leverage.
Investors? Possibly you!
I also want to trade other people's money
To hell with trading, I just want to take other people's money
you can't just trade other people's money without proper certification, your best shot is a prop firm
I know that, I just dont know which certification I need..... Maybe a series 65? But I'm not sure I can get paid on commission with just a 65. And everything else requires a 7 series. And I don't think prop firms are what I'm looking for.
I guess I'm just looking for a way around the accredited investor clause for Hedge Funds. Without that I would be in business. Does anyone know if thats possible?
blackhat wants to say that he has still saved up some money in case of a bad times he wants to invest !
I do 10% per month (on average) on my put selling strategy. The lower the market goes....the better. And no its not impossible because i do it! Started in 2012.
As far as trading on behalf of others, it seems the cheaper route to go, verses the $30k hedge fund set up, is to form an LLC as the GP and have your investors be LP's. I've read this set up will cost around $3k (using a lawyer). I guess with help you can go the ultra cheap route and use legalzoom instead of a lawyer?
-DK-
I was looking into something similar. It's really simple to register an LLC in Delaware. Cost is around $350 to setup. After that there's a $100 fee to paying the agent that setup your company, and a $300 LLC tax.
I'm not sure how capital gains taxes work since it's still in the U.S. I'm also interested in any licenses required. Does having investors be LP's waive the requirements such as being an investment advisor, etc? I trade futures more than stocks and options, and read up somewhere that licensing is required. I'm pretty sure it all depends on the legal setup from the start though.
Thanks for any info, Steve
Trading Other People's Money (Originally Posted: 08/07/2009)
What are the legal issues with trading other people's money? Is it possible to not have to register or take licensing exams (Series 3, etc)?
What necessary steps do you need to take?
What is the cheapest way to get this done?
I want to know how to start an investment fund.
Have you actually thought this through?
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