Am I mad

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Milan Marcus

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Morning lads and lasses 👍

Run a fairly decent business
Want to do a bit of currency trading via spread betting
Don't know enough to be sure of myself
Met an old school friend who shows me he's getting 5% return per month
Thinking of letting him run my account for a fee
Going to KO with £30,000

Key questions

Do other people here do this ?
If it's my account can he nick my money ?
He knows his stuff I'm sure of that however is 5% per month to go to be true ?

Any advice appreciated 👍
 
I don't have the time and I'm confident he knows his stuff so I'm happy to pay him either by way of commission or a monthly charge.....
 
Can you get his method and post a summary here? At least you'll understand it and get feedback on whether its soundly based - or if he's taking silly risks and runing his luck.
 
Very little info here , 5% a month ok but whats his max draw down ? How much he risks per trade ? How long was the track record that he showed you , was it for 6 months or 6 years ?

And why start with 30K , try him with 5k , he can trade forex with a small account ...
 
I'm happy with his trading plan - as I suspect with most plans it all makes sense on paper 😃

My question really is it common in the industry for people to manage other people's portfolio - the online broker I have found offers it as a service

In addition if you are a decent trader on a low risk strategy I think maximum exposure is 2% equity per trade (don't quote me on terms) is 5% per month achievable or is it an outrageous claim ?

Was going to stake £5,000 to begin and build it up hence why I was asking if there are any horror stories of people having their funds taken in this sort of scenario

Am I right in thinking my gains are tax free ?

Appreciate any advice and promise I'll feedback my experience for anyone interested
 
You didnt answer any of the questions asked , and yes you may lose the whole pot so it could be a horrific experience . Big difference between a trading plan on paper and an adequate track record .
 
tar said:
You didnt answer any of the questions asked , and yes you may lose the whole pot so it could be a horrific experience . Big difference between a trading plan on paper and an adequate track record .
Click to expand...

Sorry Tar......yes he has a track record and has proven experience. His portfolio shows the 5% per month return over the last 18 months. I can't answer all the questions because I don't know the detail. If I knew the detail I would do it myself hence why I'm letting him do it.

I accept I may lose money via trading however I was interested to know if anyone else let's someone else trade their money and if so are there any stories reference the trader somehow getting access to their capital and transferring it to themselves. The online broker is adamant it can't happen but I wanted to ask on this forum to here of any experience. And also if it's common for a decent trader to get those returns or has he been lucky etc......
 
You should be worried about losing the money in trading rather than him running away with your money which is unlikely ...
 
Don't do it unless you're willing to lose it all with no hard feeling.

A sincere friend is much more important than any ROI.
 
Most of the brokers I use don't allow you to withdraw to any account othere than the one you funded it with. Hence it would not be possible for whoever else is trading the account to steal your money.

Honestly, I would not personally mix money with friends, especially large sums.
It almost always causes problems and is your friendship really worth that much? I would not want lose any of my friends over money. I nearly did a few times so have learned from it.

If you are skeptical but he has a proven track record then go for it but start small.
 
Revorocks said:
Most of the brokers I use don't allow you to withdraw to any account othere than the one you funded it with. Hence it would not be possible for whoever else is trading the account to steal your money.

Honestly, I would not personally mix money with friends, especially large sums.
It almost always causes problems and is your friendship really worth that much? I would not want lose any of my friends over money. I nearly did a few times so have learned from it.

If you are skeptical but he has a proven track record then go for it but start small.
Click to expand...

Thanks bud.....he's not a close friend so no risk of it being personal hence why I was worried regarding how secure my funds are which you kindly confirmed what my broker had said. I don't have the knowledge to trade however I have cash to invest so rather than stick it all in the bank I'm happy to risk a chunk. He's a proven trader and my aim over the next 12 months is to learn from him so eventually I can trade in my own if I want. Thanks for your help it's appreciated 👍
 
Milan Marcus said:
Thanks bud.....he's not a close friend so no risk of it being personal hence why I was worried regarding how secure my funds are which you kindly confirmed what my broker had said. I don't have the knowledge to trade however I have cash to invest so rather than stick it all in the bank I'm happy to risk a chunk. He's a proven trader and my aim over the next 12 months is to learn from him so eventually I can trade in my own if I want. Thanks for your help it's appreciated ��
Click to expand...

No problem. If you're going to invest, then just invest an amount you can afford to lose and won't **** you off if he does.

I invested in someone I know, they are a friend but not a close friend and chose an amount I was comfortable with losing. So far its worked out very well, however even if the worse happened and he stole the money (I sent it to him directly), or he lost it all, then thats life. At the end of the day you have to risk money to make money. You would know that from owning a business so just risk what your comfortable with losing.

Just don't get greedy and tempted to invest too much in order to capitalise on larger returns.
 
A negative balance 'might' happen and if the account is in your name..........

So you would need a broker who offers that protection to cover the risk.
 
The best thing you can do is leave that money in your bank account or perhaps use it as a deposit for a buy to let. You should get to know things through demo;when\if you start making pips and your demo is growing for 6 months without huge drawdown - then throw a few hundred into a real account and trade that.
 
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