So…I happen to have a little less than $100k – which I know is a tiny amount for professional capital.
And…that’s why I am thinking on how to raise additional funds. One of my ideas was to start a hedge fund and offer investors the option to open account online and deposit money easily…as if this is some online stock brokerage or forex, etc. I am also rethinking whether it will be a good option to offer some minimum interest rate per annum – like 6% minimum. Personally, I work as a software developer at a relatively big company so creating the website will be free in my case – most money will be spent for legal fees and marketing. Finally, I trade options, stocks and bonds for more than 5 years and 1-2 strategies that look as a safe bet – so offering 6% APY looks achievable. But…you know…the obstacle are obvious (weak ecomony, lowered investor’s trust, no track record…etc.).

thanks in advance!
anyway funny how when i ak question about a stratey noone replies and hwne i ak about investment bunch of "wiseguys" replies…well…whatever
anyway funny how when i ak question about a strategy noone replies and when i ask about investment – then bunch of "wiseguys" replies…well…whatever. Fixed.

Don’t worry about being tagged a "Madoff" maybe "foolish" or "unrealistic" would be a more proper tag.
You list your obstacles but you forgot two important items which would be considered obstacles by those of us with experience – full understanding of the rules and regulations governing hedge funds and the industry and more importantly a limited amount of securities experience.

You can not legally start a hedge fund for less than $100,000, you need at least 100,000 in net capital
Registrations, accounting and legal fees will cost approximately $25,000 (this reduces your net capital)
You need a clearing firm to clear your trades and hold your clients funds, this will require an approximate deposit of $50,000.
Yearly account fees, insurance, and registrations will cost another $25,000 which will reduce your net capital.

If you want to move forward with you "idea" you will have to create a full and complete business plan. Rather than come to YA for directions, you will have to present your plan to those with extensive industry experience and connections. I have participated in creating broker/dealers, funds, clearing companies and industry systems providers, coming to YA is not the way to go.
Based on what you presented here, you are a long way off from attaining your goal.

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So…I happen to have a little less than $100k – which I know is a tiny amount for professional capital.
And…that’s why I am thinking on how to raise additional funds. One of my ideas was to start a hedge fund and offer investors the option to open account online and deposit money easily…as if this is some online stock brokerage or forex, etc. I am also rethinking whether it will be a good option to offer some minimum interest rate per annum – like 6% minimum. Personally, I work as a software developer at a relatively big company so creating the website will be free in my case – most money will be spent for legal fees and marketing. Finally, I trade options, stocks and bonds for more than 5 years and 1-2 strategies that look as a safe bet – so offering 6% APY looks achievable. But…you know…the obstacle are obvious (weak ecomony, lowered investor’s trust, no track record…etc.).

thanks in advance!

Having started a hedge fund myself, you need to see a lawyer. You can’t start a hedge fund and then hold it out for public investment like an online stock brokerage. Hedge funds are for qualified investors who sign up to be limited partners in a fund offered by you that has an offering memorandum that they need to agree to first (and 100 other complications with your idea). You can’t even allow access to your website without at least some token approval process first. You surely can’t allow people to "invest" online.

Prior to soliciting any clients for any sort of investment vehicle you need to be straight with the SEC and/or CFTC which means passing the Series [whatever is your thing] and registering your company with the proper authorities (otherwise you can’t even take the exams).

Guaranteeing a minimum return makes you look like an idiot or a scammer. You can’t "guarantee" a return higher than the risk free rate and your guarantee wouldn’t mean anything anyway as investors would have to sue you for their return and you would just close up shop and bankrupt the entity anyway.

Anyway, you don’t just start a hedge fund and expect high net-worth individuals and institutions to come to you (those are the only possible clients). You do $30K – $100K wrth up legal work, set up off-shore entities, write offering memoranda, find seed capital, and a whole bunch of stuff I had to learn after spending 10 years in hedge funds beforehand.

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ok this is regarding the forex market.ive read a lot about how forex brokers dont like theyre clients winning so much from proffesional investors..but they never say why.a person who keeps on winning will likely build their capital and probably trade at a greater volume. this greater volume will give the brokers a bigger cut of money due to the bid/ask spread……so why dont they like this then.does it cost them a lot to procces the transaction or something…any opinions would be appreciated

A broker in the strictest sense is someone who arranges transactions between a buyer and a seller and gets a commission when the deal is executed. The more you are trading, the more you are paying. So they don’t really care whether you are winning or not, just so long as you are constantly placing trades. However, unless you have superior trading abilities, the more you trade the more money your going to loose, thus you will tend to loose as brokers win.

However I believe you may be referring to spread betting??? Such companies are not market makers, they agree to be on the opposite side of your bet. If your making money, they are paying out and visa versa.

Dealer market makers do hold assets in-between trades. The spread you pay is to take into account the volatility of the asset. It is to account for the risk that the asset price may go against the market maker during the period in which they hold the asset. So i guess the market maker would hope for you to sell them the asset immediately before a market rise and subsequently buy the asset from them immediately before a market fall.

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Well I’m an immigrant from Russia. I moved here as a kid with my mom. Growing up ive been pretty alone. Im very independant for better or worse.. I dropped out of high school when i GPA went down from 3.4 to 2.7 even though i went to this placement and got straight A’s my GPA went down i said screw it. SO im starting community college and then transferring to a university. University of Illinois, Depaul, Miami University, and Syracuse happen to be my top choices. I have a mind for business/math. I’m not in anyway academically challenged. I can get straight A’s no problem if i just set my mind on it. The stock market is my passion. I think of myself as a George Soros type. I will transfer with a high GPA and phi tetta kappa honors society membership. When i transfer i will join business/trading clubs. I will network and land a trading position at some firm in NYC or Chicago. Then i will return and get my MFE at an ivy league school. Then I want to go on to hedge funds and eventually start my own and manage billions of dollarrs. This would be success for me. Its my dream that ive had for 5 years now. I want to be able to live and travel work for myself no answer to anyone. Financial freedom through something i love and do well …. now does that plan sound good? The ivy league part for my masters is so i can network and raise billions thats the key.. if i cant go to an ivy league ill be stuck in the millions, still that would be plenty.
I’d hate to be in investment banking or something similar. I’m more into risk/reward business. Venture capital an interest. Poker my hobby. Forex,Stocks,Futures, options trading is my main focus though.

btw im working at mcdonalds saving up money. I just turned 20 and dont even drive a car as i see it a financial blackhole with not profitable outcome. And ofcourse live with parents who are helping pay for community college but when i transfer i will be on my own…

deep inside all day everyday i feel that i will succeed… despite recent loses in poker and forex im still opptimistic. No matter what happens i will still believe. Im a very hard worker and ofcourse passionite about finance. I have a good chance right?

The key to success is passion and it sound like you have plenty.

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I’m 19 and Im a trader. Im good at trading but don’t have enough capital to actual get me anywhere anytime soon. Can I register for credit cards, make a paypal store for with buy it now buttons and charge my limit on my credit cards to my own paypal, then take that money put it into my forex account and trade with it? Is that legal or is it fraud? If its fraud what are my chances of getting caught? And i am fully aware of the risk of losing all the moenyin the market so don’t lecture me on that…
Rubadub I have a solution to them finding out.. I could always go into a walgreens and by a prepaid credit card or whatever you call those things then use that prepaid to buy another prepaid from walmart for example then finally put that into my paypal… they can probably track that too but I’m sure it will buy my some time
Rt u are right about investing but sir I am not investing I am speculating some would even say gambling… so y use my money when I can use the crreid card companies money
I’ve had a partrime job since 8th grade… and getting the cards should not be a problem, I’ve had a credit card in my own name since I was 16 which my parents got for me to start my credit score… I get credit card offers in the mail for cards with 10000 dollar limits so….

Also I do have every intention of paying the money back but obvioisly if i lose it all I won’t be able too…

I could do the cash advance thing I think I could manage but yeah the 29% after a month is what I. Worried about. That’s y I want to transfer it into my paypal and not make it a cash advance even though it is… I guess the prepaid won’t work if u can only use cash… hmmm I have to think now… I’m sure ill think of somthing

And this could destroy my credit score yes I know, that’s a risk I’m willinf to take.

Yes, that is illegal. It’s a form of "kiting". It’s also speculative so you could end up losing the money and then have nothing to pay off your debt. Investment should only be done with discretionary money!

EDIT:

You are still "playing the float"; borrowing money to use during the grace period. This is commonly referred to as "Check Kiting" but it’s the same principle.
http://en.wikipedia.org/wiki/Check_kiting

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Who trades FOREX here?

Could you please help me make a small statistics about the market? (Not able to find any firm statistics on the web though).

1. What is your capital?
2. How many lots or how much per day do you trade? (micro, mini or standard)
3. What is your daily limit? (trades, profit, pips, etc)
4. What leverage makes you feel safe? (50:1, 100:1, 200:1, etc)
5. Do you like fixed or variable spread?
6. Do you prefer market execution or instant execution?
7. Is scalping always profitable to you, what do you think?

Appreciated a lot, thank you.

This Seems very similar to another question I already answered so Here is a Quote of it:
"Hey,
Just want to start out with I’m no pro but I’ll give my 2 cents and help you on with more resources.

1. the great thing about forex market is that you can start small. Some start from 5000-10000 but many start with 250 and that’s all fine. If you’re new to the trade you likely want to start small and use minilots until you get the hang of things as there can be learning curves that can result in some unpleasing experience but it helps build your knowledge and wisdom.
2. Most people likely trade with standard however yet there are many who prefer to trade with minilots. Personally if I were new to a certain currency pair, minilots or micro lots would be my choice, if I were more familar with a specific currency then more onto standard might be my choice but yet sometimes I’d still like to trade mini depending on the trend and past results
3. That really varies from each trader however it would likely be contigency on their capital and lots traded
4. I’m one that takes things very save so I generally prefer 50:1 but that’s a personal preference sometimes I move 100:1"

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Hi All,

I know everyone’s strategies, experience, capital, money management, time they spare for trading, etc are completely different than each other, but I will be really glad If you inspire this new guy who is eager to make a small statistics about the market. (Needed for a presentation).
Not able to find any firm statistics on the web though, anyways.

You may answer any question you like, Thanks.

1. What is your capital?
2. How many lots or how much per day do you trade? (micro, mini or standard)
3. What is your daily limit? (trades, profit, pips, etc)
4. What leverage makes you feel safe? (50:1, 100:1, 200:1, etc)
5. Do you like fixed or variable spread?
6. Do you prefer market execution or instant execution?
7. Is scalping always profitable to you, what do you think?

Appreciate your answers, time and help.

Regards,

Hey,
Just want to start out with I’m no pro but I’ll give my 2 cents and help you on with more resources.

1. the great thing about forex market is that you can start small. Some start from 5000-10000 but many start with 250 and that’s all fine. If you’re new to the trade you likely want to start small and use minilots until you get the hang of things as there can be learning curves that can result in some unpleasing experience but it helps build your knowledge and wisdom.
2. Most people likely trade with standard however yet there are many who prefer to trade with minilots. Personally if I were new to a certain currency pair, minilots or micro lots would be my choice, if I were more familar with a specific currency then more onto standard might be my choice but yet sometimes I’d still like to trade mini depending on the trend and past results
3. That really varies from each trader however it would likely be contigency on their capital and lots traded
4. I’m one that takes things very save so I generally prefer 50:1 but that’s a personal preference sometimes I move 100:1

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I have a bit of capital I can invest towards starting a home based business or investing (about $2500), and I would like to get some ideas on how I can make some money online, through home business, or personal investments. I have a very analytical mind, and I would like to put it to use.

I have a weakness in advertising/marketing, but I am very good with budgets, margins, and things to do with numbers. Should I invest the money in the stock market or forex? If so, what kind of return would be "reasonable" for a novice? What other business/money making ideas do you have??

My advice would be for you to look over this website, it is full of invaluable information that would pertain to your question.

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He’s got blinders on after spending two grand on a "class." He wants no negativity, he says. But simple math tells me and should tell him that his capital investment will never make his online "labor" worth more than $5 an hour– and that’d require a 60 hour work week and NO LOSSES.

How to educate him without alienating him? Is there a website certain and simple?

There really is nothing you can do. He is determined and will resent your interference. The three things in life that are additive to men. Women- drugs/alcohol- gambling Not all men are additive to all three but each has its own power to destroy. He is on the gambling faze. Let him loose his money and you should learn and realize the power of the three of them. I have one friend who has all three mess him up. He smokes marijuana daily for 25 year, has traded futures for over 10 years loosing untold thousands and has a wife, soon to be ex-wife that is going to take what ever he has left.

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Okay, so, currently I’m 18 and I’ve looked into different possibilities of how I could become a millionaire using the forex market as my vehicle. I have discovered that using 1:100 leverage or even 1:50 – 1:25 is a bad idea if you want to be safe about it, and using a more modest 1:10 leverage instead is best for my chances of success.

What I’ve also discovered is that the forex markets trends last months or even years. So, my plan is as follows:

1) Start with $1,000 in my new forex trading account.

2) Use 1:10 leverage always to reduce a lot of risk.

3) Use a stop-loss of all my trading capital in every trade.

4) Keep the minimum take-profits as long as its more than what my commissions would be.

5) Just follow monthly chart trends, i.e. if the trends gone up for the past year on a yearly chart, and it shows it in a monthly chart that its going up as well, just follow the trend up along with it and keep on going up until I think its going to stop going up by taking advatage of lots of small take profits along the way.

6) Be aware of economic news and reports.

Example:

Say the GBP/USD is trading at £1.0000-$1.5000, and I place a bet to buy GBP/USD at this price at a 1:10 leverage, or $15,000 worth of pounds, (£’s) and I set a take-profit of, say, $15 or 10 pips and a stop-loss of my whole $1,000 and and keep on doing this, taking profits by trend trading and make this same $15/day for the 6 days the FX market is open a week, or $90/week x 52 weeks = $4,680 in 1 year + my original $1,000 = a 568% return for one year.

After I have achieved my 568% for 1 year, reinvest all capital and get another 568% compounded on top of that. So, it works as follows:

year 1) $1,000 up 568% = $5,680

year 2) $5,680 up 568% = $32,262.40

year 3) $32,262.40 up 568% = $183,250.43

year 4) $183,250.43 up 568% = $1,040,862.40 = USD millionaire

year 5) $1,040,862.40 up 568% = $5,912,098.74 = USD multimillionaire and GBP multimillionaire, or £3,829,025.15.

What do you say here like? Could this plan work do you think?

You’re catching a falling knife. Just buy some gold and let it set for 5 years. That or short some bonds because interest rates are going up.

Don’t screw around in currencies… you’ll lose your ass.

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