I’ve seen some posts about this topic and have tried to search, but to no avail.
I was wondering what type of process you need to go through in order to be considered as a trader for others (the guy people invest with). Let me be the first to say that I know this sounds odd coming from a trader who is just starting out, but I have finally been making steady profits for the past month. “The past month you say??? Well that doesn’t seem like a long time.”
I would agree with this, however over this one month period, I have not only been making [B]steady, consistent[/B] profits, but my max drawdown is 2% always. I am up to a little over 10% which gives me about 0.5% on average per day.
Another foreseeable issue is that my capital is probably not as substantial as many of you. This is something at this point where there is nothing I can do about it. I can’t just make money appear so I can deposit. I’m sure most (if not all) are saying that “well he isn’t trading with a lot of capital so making profits with not such big amounts doesn’t prove anything.” This reminds me of when I was trading with a demo account and I must say that I took it very serious and to date have not seen a bit of difference when compared to live (except for 2 instances of slippage during a spike) despite how everyone told me that it would be different (because of the real money). I have conditioned myself to detach from the psychological/money aspect and just focus on the trade itself before I even started live which is probably why there is no difference to me. The only difference between now and trading with a much larger size is merely the lot size. Say what you will, but I am convinced of this.
Going back to my original question, how much of a track record would one need to convince a broker to let you trade for them?
I have been trading live for about 3 months at this point (not just one month) and one year for demo. When I first started live trading, I got up to 3% at which point I took half of deposit out to pay for some things. After this, I wanted to try some different things just to experiment and after a series of bad trades (like 12 trades in a row), I got down 25% less than my new half deposit (which wouldn’t be as bad had I not have removed half first). Anyway, it was at that point where I decided to stick to what I was doing because it was working. I made it all back + 10% as of now.
My initial deposit was at beginning of April of this year so that gives you an idea of how new I am (but I also took demo serious for a whole year). I know that a broker looks at your track record before considering you to work for them, but is it a huge turnoff if you haven’t been trading with a lot of capital despite the numbers being there? Basically, I just want an idea of what they are looking for.
For the record, I am not expecting anybody to be impressed with a month long “hot streak” but it has given me the confidence that I have been looking for and give me the idea that maybe I can actually make this trading thing work.
Thanks in advance.