Topic: Trading using someone else's funds - page 5. (Read 1318 times)

I don't care what anyone else says, if someone trusts you enough to give you his money to trade, that means either you are good enough that you will trade well and give him the profits while getting your own cut, or you are so bad that he is wrong to trust you with his money. So in both cases, it is responsibility of the person that gives the money, there is no scenario where the person that gets the money is wrong.

Hello. I've been quite successful so far in my trading endeavors. So much so that I've been offered a decent amount of money to trade with if I split the profits 50/50. I just have some questions on how I can go about doing this carefully.

How can I ensure that I am keeping track of when I am using their funds and when I am not? I guess I could always open a second trading account which would keep the funds separate, however, this would be a bit of a pain having to sign in and out of multiple accounts.

If I added the funds to my own account how can I keep track of profits? Could I calculate the percentage of what the newly added funds are compared to my current funds? And if I need to cash out or share profits in the future, I would take that percentage of my total funds and remove them?

For example, if I currently have $10,000 and am loaned $3,000, bringing me to $13,000, could I take the percentage of the loan (23%) and multiply it by my ending balance? So,if a year later, my ending balance is $37,245, would taking 23% of this balance ($8,566) provide me with the correct amount of funds? Then take the 50/50 split profit amount ($4,283) and send it back to the loaner? Does my math seem to add up?

Thanks.

Edit: Just so everyone knows, a close friend of mine has asked me to trade with some of their money. They have witnessed my trading and know that I am profitable. It is NOT a random person as others have suggested on this thread. Either way this does not matter and I would like to keep the discussion on topic.

I don't care what anyone else says, if someone trusts you enough to give you his money to trade, that means either you are good enough that you will trade well and give him the profits while getting your own cut, or you are so bad that he is wrong to trust you with his money. So in both cases, it is responsibility of the person that gives the money, there is no scenario where the person that gets the money is wrong.

I mean think about it, this person has some amount of money, and they trust someone else with ALL of it, that person may not even give you back and just take that money and spend it on food or car or whatever they can buy with your money without ever replying to you, basically stealing your money. So, if there is a profit or loss, all the fingers are pointing to first person that gives the money.

I do not have much confidence in trading by another person, there are a lot of problems that occur in this type of trading, it will be difficult to calculate the exact profit rate for each party and this will be unfair to either party. This is best done by providing a loan and taking a specified percentage as interest on the loan.

You said it’s your friend that is offering you the loan, still there is nothing wrong with what others have said here because when it comes to money matters friends can even turn enemies, so you still have to be very careful not to mess with the money you’re given.

I believe, like you said, you’re very good and you’re going to make profit with the money. And don’t let your emotions take over you now, maybe you start getting overly excited or things like that and start trading wrongly lol , just relax. And as for how you’re going to handle this, maybe it’s best to just trade with only their money for now, or you can go ahead and use the formula you have talked about, it seems accurate.

For example, if I currently have $10,000 and am loaned $3,000, bringing me to $13,000, could I take the percentage of the loan (23%) and multiply it by my ending balance? So,if a year later, my ending balance is $37,245, would taking 23% of this balance ($8,566) provide me with the correct amount of funds? Then take the 50/50 split profit amount ($4,283) and send it back to the loaner? Does my math seem to add up?

But still, at the end of the day, your friend trust you to make a trade which is a good thing and this is a huge responsibility to you and you need to win all of those game on trading still all you need to is become prefer and you both especially hoping that you will win the market price of the bitcoin and earn with the use of trading. It is better if you said already that trading is one of the riskier things you should do.

But, from the perspective of investors they are ready to risk by believing into some traders' skill set. It means they are unable to trade by themselves and that must be the reason why they want to hire someone else to take care of their funds but for trading purposes. I believe this kind of dealing is already happening on most of the markets and because of it remains profitable to the investors, I guess this kind of trends are still keep popping up.

If ever someone wants you to trade for them using their funds, I don't see any wrong with this one dude.
Now the answer of course would depend on you, and it's up to you how many percent you can give profit to your
capitalist, if yo want to play safe you can tell him/Her that you can give 1% daily profit where in 1 month 30%.
but this is just a suggestion came from me only, the final choice or decision will still be yours.

how If you beat in one hit aside from losing, then your money or capital comes from someone who's anytime to kill, So it's very dangerous to proceed, it's up to you, but this recommendation about a position is riskier.

We never know what will happen in the future, and it is better we risk our money than to risk other people's money. If we can risk our money, we will know how to prevent the risk, and we always work hard to avoid the big risk.

Personally, I wouldn't use someone's fund to trade in the market. The market has a lot of uncertainty and I wouldn't want a situation where I get to owe people should things don't go as planned – If it's someone's money, you would be put in a tight corner if you're unable to pay back. I've seen situations like this and how it has affected people when things don't go as planned. My thoughts?

If you're sure you can do it, then by all means, get on it. People even take loans from bank/other sources. So it's completely normal. But only do this if you're sure of what you're doing. You should also manage your risk while at it.