Where to Go from Here

[PipHog888 10]

A small account ($800.00) unit forex trader that is consistently profitable but not highly so (40-50 pips a month) has two choices?

 

1.Grind it out for a couple more years (it took five years to get to here) until the account reaches the equity needed to make enough profit to withdraw some of it for expenses and yet still add to equity.

2.Try to find someone to fund a 20k-30k account for starters so can start the above process immediately.

Do you see anything wrong with not wanting to wait another two or three years after putting five years into this already, just because of lack of funds?

 

Any experience out there? Recommendations? What do you think?

PH

[Tradewinds 12]

If you can find someone who believes in your ability to make money trading and is willing to invest the money, you will need to do something other than borrow the money from them. That's my opinion. If you borrow the money, then put the money in an account, who's name is the account going to be under? Who is going to be responsible for any taxes, fees and expenses? How is the person who loans you the money going to report a gain if you make money? What if you loose all their money? What if you make a huge amount of money, but most of it goes to the person you borrowed the money from? There are a lot of questions.

If you are operating from the U.S. you can set up a Limited Liability Company (LLC). With an LLC there must be at least 2 members. Each of the members are owners. Each member owns a certain percentage of the company, and is entitled to a certain percentage of the profit based upon their ownership. The LLC does not get taxed. Each owner is responsible for their own part of the income. There must be a manager and a secretary to the LLC. The LLC can also have employee's.

If someone else puts up most of the capital, you could create an agreement, that you would get paid for your trading expertise. Because as part owner, you wouldn't get much of the profit, as an owner with a very small percentage of the ownership.

You can buy a book that explains what you need to know about an LLC.

You will need to open a checking account and a brokerage account in the name of the LLC. There will be a fee to create the LLC with the state. You must get a Employer Identification Number from the IRS.

If you hire an accounting firm to set all of this up for you, it will cost you more money than you currently have in your account. So, the person you get to invest in the company with you would probably need to fund that also.

I would not borrow the money. That's my main point. Don't borrow the money. If you want to set up a legitimate business, then do it that way. And have people invest in the company, understanding the risks.

[Hlm 10]

Let's keep this simple. If you really have a winning strategy and are that confident then just take it out on credit (e.g. Credit Card). It should be doable with the amount you say you "need". Then you get to keep everything but the interest and you don't have to deal with another individual.

[Hlm 10]

My point being...if you aren't willing to put yourself financially on the line, why should anyone else trust you with their money.

[Tams 20]

with the power of compounding,

even a small account can grow quickly.

but if you do not have a positive expectancy,

no amount of "investment" can help you grow. (or bail you out.)

[MadMarketScientist 11]

I'm with the above opinions - at least in the fact that maybe rather than feeling the need to jump from 4800 to $30K why not use some personal credit and bump it to $2500. See if you can continue to remain profitable for a couple months -- then why not look within your circle. Maybe there is friends and/or family who could help you get that up to $10K. See again how you do with more money on the line. That pressure sometimes changes things -sometimes not.

 

I think you do need to do something to push beyond $800. Because if you use smart leverage it will take some time to build that up. And, rather then suggest you start playing with 50:1 leverage and drawdown half the account overnight and turn this into gambling, I think you're going to need to find a way to start pushing up the equity balance.

 

Just don't see the need to jump it as far as you want -- try a couple steps in between - if it continues to go well the money will come to you. Trust me.

 

MMS

[andyhk 10]

With a consistent win you could publish your trades on a site like Collective2 for a small charge per month. It will increase interest in your system if you are looking to monitize it and also if you charge a low enough fee should generate a small amount of cash.

[TheHardWorkingGuy 10]

If you have made it that far, pull back a bit. Try to detach yourself as much as possible from the anxiety being generated already by going over your methods, get them really documented such that virtually anyone can follow your methods and do the same thing you have been doing.

 

If it is possible, translate your methods into codes and begin to see if it will work out as before. It doesn't have to be a robot, simply codes that will signal to you that the same strategy of yours as done manually is being generated automatically.

 

Compare both automatic with the manual and start to proceed from there. If you succeed better than before, then you will give yourself the necessary confidence you need to borrow more money or even raise a credit.

 

By this, you will have the self 'push'.

 

To your trading success,

Aden.