Topic: Trading using someone else's funds - page 2. (Read 1318 times)

It's not that easy to get access to big money, it doesn't work so that people will bring you the money themselves, for this you need to be registered as an investment or trading company, and there must be some kind of reputation, achievements and recommendations, otherwise you will not receive any funds .

But even if you have everything you need, you need to consider what risks you take on when you plan to trade other people’s money. This is somewhat similar to a loan, where you receive money. You will have to give it back to investors with part of a profit, so it is all a very complex and responsible undertaking.

That si the most stupid way to trade using funds that does not yours because this will end as careless decisioning because you care nothing big as this is not totally your money.

This same thought in gambling without using your own money that you are willing to lose like that .and also if this is a loaned amount then you are losing two ways as from the interest and the capital of your borrowed money.

Trading using someone else's capital is not ideal, have you heard of this statement, trade with what you can afford to lose, if you have heard about it then you will know that it's not a good thing trading with someone else money, because that is a money you definitely can't afford to lose since it's not yours.

And secondly, when trading with someone else fund, it put's you in  unnecessary pressure which comes with, you have to deliver a trade, for it to be profitable, and that alone will compell you to be making emotional decisions which is not good for trading, so I would suggest that if an opportunity to trade with someone else fund arise, you should decline it, so you wouldn't be in such mess.

If you're a newbie just starting to trade with no experienced, you don't need to be using other people money for trading. First trade with your own money and after trading for some period of time that you have received some experience then you can start using other people money so you can increase the profits you might get from increasing the amount of money you're using to trade. If you can crack the secret to use other people money to make money for them and yourself you'll become wealthy because you'll have unlimited supply of capital to use in trading. There are many individuals that'll be willing to give you their money for you to trade for them since they don't want to take the risks of trading by their own hand. Sometimes it's because they don't know how to trade or because they know you have more experience and can make them more money.

right?, its ridiculous, using other people money to trade just gonna get ourself a lot of trouble,trading can go wrong quite literally any time and if OP already have the capital there's absolutely no reason to use other people capital because there are simply too many implications here, they can be demanding their money along the way when the price of the asset you just bought are dumping which you should be able to wait it out for some moment later until the price back up again.
I don't think its any good idea at all to use other people capital for personal trades.
you're not professional fund manager that abide by ethics and law as well as being protected by the term and conditions.

it doesn't make sense, why do you accept their money when you have capital for trading, unless you don't have capital it would make sense, but you say you have capital so it's very unreasonable and doesn't make sense to me, you can easily make a profit but you complicate yourself with mathematics 

Using someone else's funds for trading always carries the risk of losing those funds. It's important to be prepared for potential losses and have a risk management strategy in place to minimize them. Additionally, it's crucial to have a clear understanding of the investor's expectations and requirements to avoid unpleasant situations in case of losses. It's always better to be cautious and demonstrate responsibility when managing other people's funds.

You can achieve control over the use of other people's funds in different ways. But in my opinion, the best method is to use copy trading for investors. Let me explain my point. You know that there are sites for copy trading and, in addition, there are copy trading services on many centralized exchanges. There are public traders who attract investor funds to a special pool. In this pool, the transactions that the trader makes are automatically copied. The trader can create the conditions under which investors will copy his transactions. Let's say a trader can specify a minimum entry amount to enter his pool. Or the percentage of the profit that he will receive in a favorable case. This greatly simplifies things.

Quite profitable you said,I don't think you are profitable yet maybe you are just popped up because of smaller profits or maybe you flipped your account to a considerable size,when we talk about been profitable it means you consistently making profit and not you accepting loan to trade with,and in turn split profit if you are to be given the Capital to trade with it different case rather than you taking it as a loan.
Besides,you coming out to ask how you can do your maths it surprising,the problem traders this days have is dwelling more on TA and given less attention to Fundamentals, portfolio management.

But not everyone has the capital to do the same and if it worth taking investments under you if you can manage them and make sure that you return them in a timely manner and build your own bankroll or capital doing it. I have seen traders who were smart enough to work for a particular guy until they build their own capital and after that just work for themselves.


But suppose you trade with $1000 and make $50 profits, now suppose you took investment from someone and copied the same trades with higher amounts then the profit you make from their money will also benefit you, right? I mean yes you are sharing your profits made by trading on their money but you also get free money basically.

I wouldn't put a cent in someone with several years of crypto trading. The entry barrier is so low even 13 years old could have years of experience in crypto-trading...

Borrowing money to have wise capital is a good strategy in terms of crowdfunding but there are high risks in doing that. For those who have years of experienced in trading of cryptocurrencies, borrowing someone else fund can be a good idea to increase your capital but there is a high chance that it can lose easily especially if the trader who borrowed fund cannot handle the market changes and risks.

A trader who usually borrowed fund have psychological preparation because it can affect the strategy, execution and planning of the trader. Risk management is what the trader should have in terms of tradinf with borrowed funds. The ideal value at the risks is 1% of the capital in order to prevent huge losses and maximize the returns.

It really depends on the person if he can handle such person who trusted his funds.
Whether in winning or losing, they should know the repercussions.
And he should laid out all possible scenarios, not only the good ones.
If that friend agreed, then, they know what they should do once the results came in.
No blaming or anything, but they should accept whatever the outcome is.

I guess there is no really an issue doing trades using other people's funds for at the first place it is their decision and favor to use their money to do some trades to be able to earn a profit. The problem on the parting or sharing of the percentage for you as the trader and them as your sponsor will be easily solved by opening other account which is at the first place a hassle but at the same time will be the best choice so that your own trading funds will not be mixed up to them so you can easily sort out the trades you will do for them.

I guess that would be favorable for the both of you since all terms on doing that seems to be agreeable. It is just that you must explain to them very well how risky doing trade is and it takes time and patience on doing trades so tell them not to be too demanding and just wait up for any updates regarding the trade. Just settle things out between the two of you then proceed on doing trades.

It is just that trading with someone's fund makes more pressure into you since you will be aiming to make profit on it unlike doing trades on your own money wherein you will not be afraid of whatever it takes. The pressure is real when using other people's funds for you are avoiding such disappointment coming from them. But since they were the ones who have asked you a favor then they must take the open risks and consequences of trading their money.

Big factors when trading is the emotion that accompanied from time to time, and you are right in regards to different feelings
using your own money and someone else fund, you are more aggressive to fill the bag to impress someone unlike when you are using your own you are just relaxed and willing to take or handle every risk that will happen, it's always good to work
with your own money i guess.

Its  just dumb for people to handle out their funds to be trade of into someone  that doesnt have really much knowledge into this area.Of course it would really needed
some extensive experience and skills when someone who do recognizes it and surely you would trust someone but we know that there are people whom do really claim  of things
that theyre good and tending to handle out funds but actually those are just scammers.On personal talks on handling out someones moneys to trade of then it  would really be
a pressure thing to  do because in back you do really need to mind that theres someone who do depend on you and you would give out some part of your earnings.

This is a funny concept, if you are trading with someone else's money then you do not owe the responsibility of dealing those, if that is the case then you cannot be trusted to manage any funds. There are fund houses who deal with others investment and those responsible for the money will invest by studying about the market extensively and with the experience they acquired and not experimenting.

its his friend offered the money . that means its his not fault if the trade lost and his friend already agreed to that   . he should have more confidence when trading his friends money because its not his money and its okay if he will loose it but not in a way that he will trade careleslly  or recklessly  .  he is good but it would be a good idea if he teach his friend the actual way to trade because depending on someone else isnt always good  . that way his friend can be more happy if he learn to trade

That is correct because you don't have the same confidence when you trade with someone else's money because you always have a fear that you have no way to pay them in case your trades end up in loss.

But that said, I think if you have a tested method that you do and you can test it with your own money for months or even years and then once you feel confident you can take investments.

As long as you have trust and faith in yourself you should take investments but make sure to also agree on some written legal terms in case you face loss then your private properly should not be touched and what you do as a business must be dealt within office only.

Exactly that! The only way I'd see trading with someone else's money viable would be, if you're a good trader (for example practicing with good profit percentage on testnets) and don't have your own capital. That way you could build your capital by "trading fees". But still, for me, at times even trading with my own capital is really stressful and I sometimes get emotional with losses - can't imagine the feeling of lossing my friend's money.