Does anyone trade for others?

If you were a good trader and had a system down would you trade for others? For profit of course.

99.99% of the time this would be a really bad idea.

Risking your money is one thing, risking someone else's is another. Then again, if they want to make an investment in you, it's their fault.

I'd be VERY careful about that.

I do not prefer to trade for others, specially when system down problem is. I can not take risk with other's money.

Looking into Oanda fxtrade Client Manager. Looks like it would cover most scenario's. Just warming up to this issue.

Oh you're absolutely right. 99.99% is an awful loss rate. You must have a full time job to support this habit.

No, I don't trade for other people... and I'm not a money manager.

However, if anybody want to find a good money (forex) manager, I got some tips.

Anyone keen on trading forex must decide what he or she wants out of the account: smaller, but guaranteed profits over time? Or, unnecessary risk hoping for larger profits per trade? I'll personally go for the account that offers a small return on a weekly basis. If this amount is going to be more than a bank will pay on a term deposit, I'll definitely go for it. Greed is one of the cardinal sins of forex trading and must be avoided.

A minimum return of 1% per week is the least one could go for given the risk factor of forex trading. That's 48% per year, and the profits can be withdrawn daily! A bank will offer you a miserly 8% per year at the most.

Another factor I would look for is the number of total trades the trader has made over a period of time. If that period is small, I'd look for the number of consecutive winning trades and the number of consecutive losing trades. This is a good yardstick to gauge a trader's skill at forex trading.

To put things in a nutshell, I would hire the services of a trader who can prove his skill on a demo platform first before I allow him or her access to my trading account. I would also keep the commission to a maximum of 15% of the profits only, with no additional charges. I would start with as little as 1000 USD and maybe, build it up after withdrawing profits amounting to the initial deposit, plus transfer fee.

It depends on the person. For some, risking other's money is much more preferable than risking their own money.

I used to trade a mixture between my money and others money in 1 pooled account, but that was 5 years back when I had time to trade...

Back then I made sure that anyone putting money in the account will not be financially hurt or damaged in the case of partial or total loss and I also made sure all of them understood the associated risks very well...

Currently I am not trading the pooled account heavily as I used to do because of time constrains, but I still do trade on longer time frames...

Regards,

Nader

I most definitely would not trade with "just a random client" money. I might consider trading for family members though....in a very low-risk type of way

If you're seriously considering it then make sure you get the right clients, managing funds is a whole different ball game.

Small cap clients (<$50k) are a pain in the butt, seems the smaller they are the worse they are! Besides which the commission off accounts like that make it simply not worthwhile.

Ideal clients are the experienced investors who are realistic about returns and they understand risk and drawdown. As long as risk is limited and returns are acceptable they'll leave you alone to do your thing.

If you decide to go ahead it's imperative you get a written agreement so everyone knows where they stand.

Be warned though, having clients can affect your trading. It's like having someone watching over your shoulder and it's easy to feel under pressure.

And finally, don't make promises of crazy returns to try and attract clients, it will have the opposite effect and you're more likely to scare them away!

What bank is that may I ask?

I trade managed accounts using fxmanager. It is a decent system. I do better trading other people's money as I am much more disciplined as I know they will be logging on at the end of each week to check their account balance. Also, I can trade my personal accounts pooled with my managed accounts through fxmanager so the discipline automatically flows through to my accounts. My advice would be to make the risk out to be much worse than it actually is. Hype it up massively saying this is 'super high risk investing' and make sure people only put in what they can afford to lose. This way if you start out with a drawdown (like I did, almost 20%) then it is expected and you won't have people ringing you saying 'what the fuck is going on here' and you won't have premature pull outs.

National Bank of Greece, perhaps, or Piraeus Bank?

Beau Diamond and Bernie Madoff come to mind !!

That's actually quite illegal isn't it ??

--------------
I wrote to Oanda and asked about required licenses for trading others accounts. They said if I was using fxtrade, there is no license requirement. I would only need that for fxManager.

But let's not forget about the newest regulations and licensing requirements. I would hate to make a lot of money only to find out my paperwork was out of order.

I would

lol ... nice one. Hold up a minute. Wouldn't I be one of the only people actually depositing any money?

Originally Posted by pipmutt
don't make promises of crazy returns to try and attract clients

More than likely, but since when did that stop anyone.

Agreed. Especially an individual trader should avoid it. If one honestly wishes to make money for others, he/she will be doubling the stress while trading on others' money; own stress as well as stress generated by the other party at the times when trades go wrong... and this stress itself ma fuel more wrong decisions.

oops.. sorry, that are various banks from my country...

I know I can be very slow at times but am I meant to be able to determine what country you are from by your username?

Anyway, whatever country it is, you are very lucky to be able to stick your money in the bank and earn a miserly 8%, in my opinion.