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[Splitlink]

no no no.

do not borrow money to trade.

If you are going to go bust, anyway, then you might as well borrow the money. The lenders must have their eyes wide open. Financial ruin is ruin, any way you look at it.

I, personally, take trading as a very personal thing. I listen to my own council, do not let anyone trade my money under any circumstances, let alone those who give 200% promises, and I advise all other traders to do the same.

 

[liam1om]

Have a look at etoro, you get paid when people follow you.

etoro don't seem to offer UK equities, which is what I'm trading at the moment.

Thanks for the replies so far, some interesting view points.

I've had a couple of interviews over the past week and I've been advised to apply to a Fund, so I will see how that route develops.

 

[Chuck Krug]

You need to open an account at a 'proprietary' firm, where they can leverage your risk deposit 10- 20 times. Do a google search. There are dozens of firms around in the US

 

[bootsyjam]

etoro don't seem to offer UK equities, which is what I'm trading at the moment.

Thanks for the replies so far, some interesting view points.

I've had a couple of interviews over the past week and I've been advised to apply to a Fund, so I will see how that route develops.

Marex/futex etc. Look for a prop firm that are looking to fund traders. Hopefully you will trade in instruments that they cover.

I agree r.e. over leveraging. I opened a futures account a few years ago and asked the broker for some general advice as he'd been in the business for over 20 years. And his response was always to risk the same [small] amount of money per trade, relative to your bank/account size. In other words, if you risk 1% per trade, then ALWAYS risk 1% per trade. Don't up it to 2 or 3% because it's a strong signal etcetc.

But anyway-look for prop firms in London, contact them, see if they're interested.

 

[liam1om]

Thanks for the replies guys. Most of the firms I've contacted are only interested in forex traders. I've been advised that I should just trade for myself which I've carried on doing since my original post and I'm currently up 215% since January.

So, at this moment in time I'm going to carry on doing what I'm doing unless I get approached with an offer.

 

[NVP]

I hear what you are saying.

Some time back I used to work in private equity for SME's. Had to spend a lot of time reviewing peoples business plans. Average size funding was GBP 250,000 with exit in three to five years. For start ups, rather than turnaround businesses.

Now, even though many of the businesses plans were scrutinized and the investors carried out their due diligence unfortunately not all businesses made it passed Muster.

Business is risk, just like trading is risk. Black Swans do not only swim around the trading environment, they are everywhere. That's life.

The issues is WHEN a Black Swan may appear rather than if. If it is at the start than Bugger! If you borrowed GBP 50,000 and traded it to GBP 500,000 and the black swan knocks you down to GBP 150,000.00

There are trading risks and business risks, many businesses borrow or are backed by investors and fail, also many succeed because they were adequately funded in the first place.

One of the major reasons why traders fail is there are not adequately funded, so they take on too much risk and are over leveraged.

So Yes there are RISKs in borrowing money to trade, but there are major rewards being properly capitalised for the task, provided the trader has earned their spurs with a decent track record. IMHO.

couldn't agree more ....but you still need to persuade someone to lend you the money and wealthy investors are not stupid ...........unless you put up major collateral and risk the house etc etc

unless you apply to the local government ?

my last main consultancy role was with a council looking at such VC startup ideas to help fund their reducing government subsidies (like all Councils need to)

I reviewed and conducted Due diligence/research on their 200 business ideas in a month and much to their shock threw 99% of them out of the window with the few left still needing major changes/tweaks to even consider risking taxpayers funds - I also recommended 2 ideas of my own that had more legs than the other 200 put together ...

they didn't listen to me (well the lead councillors didn't as they had their massive egos bruised as I rejected lot of their pet projects ) and we parted company relatively painfully - leaving them to still potentially risk taxpayers money on doomed ventures.....so always worth a shot for anyone looking for funding..... and no one manning the DD desk ......:whistling

N

 

[Chuck Krug]

http://leverageacademy.com/blog/proprietary-trading-shops/

 

[NVP]

Thanks for the replies guys. Most of the firms I've contacted are only interested in forex traders. I've been advised that I should just trade for myself which I've carried on doing since my original post and I'm currently up 215% since January.

So, at this moment in time I'm going to carry on doing what I'm doing unless I get approached with an offer.

215% sounds good to me ............self fund yourself dude and never ever look back

N

 

[Parky]

Ideally you need flexibility, back yourself, keep 100% of your P&L but be clearing with someone who views you as a partner/client, which means as and when you have a strong view and want to increase your leverage beyond what you can financially support (or have in your account) then your clearer enables you to have that facility in exchange for a pre-agreed P&L Split. In that way you can have the best of both worlds. They are out there! By the way, there are clearer's out there looking for good quality prop traders in derivatives, bonds and equities and not just Forex.

 

[liam1om]

Parky - That is exactly what I'm looking for and would be my ideal position.

Trade 100% for myself and when I have a very confident trade lined up to go through the clearer. I've just had issues trying to actually find a suitable clearer.