Trading by yourself vs Letting someone trade for you
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Thread: Trading by yourself vs Letting someone trade for you

  1. #1
    I did a significant study on forex before and finally produced a nice system I did ok with live trading but I could become a lot greater than that with more research.

    But then I learned about having the ability to spend money on other traders.
    They require a cut of the profit.

    The professional of doing it on your own is that... first of all you don't need to share just a small cut of your profit with someone. . And you'll be able to choose to do high risk trading. . gambling. . For a brief period.

    But should you let a trader do it. .
    1. You don't have to spend a thousand hours on studying and learning how to exchange and the eduion never really stops even once you're successful you can still continue studying.
    2. You don't have to sit facing the pc boring yourself to death looking at charts several hours every day.

    Uhmm, That's it I suppose.
    But these two points are easily worth giving a professional trader a 20 percent share of your profit imo.

    I just want to see what others think about it and the reason why they insist on learning how to trade by themselves.

    I recently got this impulse to become a fantastic trader because so many pro traders sound really dumb when they talk about their system and egy.
    It makes me wonder just how great I could turn into if they may get so good.

    But the trader I am investing in appropriate now bring in on average 5 percent per month.
    And he's recently gotten a lot better and it is likely more per month now. He is very secure investment also because he has several years of history and thousands of transactions done and has had near none losing months.

    So I really can't make myself quit investing in him starting to trade on my own because of the pros and cons I've previously mentioned.

  2. #2
    Quote Originally Posted by ;
    Sorry, wouldn't prefer to trust somebody else to trade on my behalf. But how would that we pay a monthly retainer into the trader for trading/ percentage of profits/both?
    Look up the way hedge funds make their money, then you get your answer.

  3. #3
    Quote Originally Posted by ;
    You say 5 percent return is large - but in what margin amount? Surely at 50X margin, one can expect to make more than 5 percent trading actively. Are we speaking trading 2 lots with $100k and earning $5k per month on that, or trading two lots with $10k and earning $500 on that?
    5 percent is really large. . For reduced risk. . It is possible to go even higher but I believe that it would need to be a fucking genius to keep an average of 10 percent with a very low drawdown.

    I don't see why it matters what my capital is for this particular thread.

    Nobody has said why they chose to trade rather or allow someone exchange for you yet but from having a peek at the posts on this forum I THINK it's because 90% of all traders and studying beginners think they can make 20-40% monthly roi (or even more) and be able to sustain it long term.
    (It's possible I suppose but you would have to get a lethal drawdown and I seriously do not think most traders have the stomach for it once you're trading for anything more than a small portion of your monthly obligations )

  4. #4
    This isn't supposed to be compatible with my other thread.

    And the trader gets 20 percent cut. . I get 80%

  5. #5
    You are a trader when you let others do the job for you.

    You are an investor at the point and you want to dive to the research of a bazillion other topics prior to going forward as an investor.

    For instance:
    Moral Hazard - Let's say I give you $100 to wager at a casino. You get 50% of the winnings if you win. Should you lose, you get nothing, but it was not your $100... how can you believe this will influence your trading style?

  6. #6
    You say 5% yield is high - but in what margin amount? Certainly at 50X margin, an individual can expect to earn more than 5% trading actively. Are we talking trading 2 lots with $100k and earning $5k a month on this, or trading 2 lots with $10k and earning $500 on that?

  7. #7
    So could you say there's much of a difference between using a signal service and getting someone to exchange for you?

  8. #8
    Quote Originally Posted by ;
    So could you say there is much of a difference between using a signal service and getting somebody to trade for you?
    I do not understand anything about signal services.
    I'd like if somebody could give a comprehensive reply about it and perhaps a couple of good links in it too.

    Good thing I could imagine about it though is that you can determine yourself how much you desire to risk. . That means you would require some experience trading.

  9. #9
    Sorry, wouldn't prefer to trust someone else to trade on my behalf. But how would that we pay a monthly retainer into the trader for trading/ portion of profits/both?

  10. #10
    This is how I view it....

    When I trade in my own knowledge and expertise I shed (overall) I hate to admit it but that's a fact, I have some great wins but at the end of the year I had less than what I began with.

    My RRSP (pension account is handled by my bank and he makes a profit for me every year.

    Therefore I deduce that if I leave the trading to a professional I stand a better probability of winning.

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