Like the title says. I have a friend that wants to drop 5000 dollars for me to trade. We split profits 60/40. If I loose then we split the loss 50/50. I have thinking about it but let him know that I want to trade on my live account another couple weeks to a month to make sure my strategy is profitable consistently before since I will be held responsible for half of the losses. However this might not be a bad idea since I am only trading a micro (witch I will with him to just with higher positions) account thats not really making much since I dont have the capital to enter higher positions at this time. But trading this I can take my profits and roll them over to my account to build it quicker. If I loose then yes I have to pay half but I made it clear to him we cut out if I loose 20% 1000usd so I only would have to pay 500 witch I could do with not much problem. Just want to hear if it would be a good idea or not.
If you are speaking to the Babypips oracle on a subject matter such as this… doesn’t it strike you as short of brilliant? :o
Stay in demo for 6 months, learn a proven strategy… then go live with your money. If you can overcome the emotional strain this puts on you and remain profitable… then talk to your friend. I’m sure this business venture will operate under scared money… which on it’s own spells destruction. Develop yourself first friend…
GLGT 
How long have you been trading?
What are your goals for this joint venture?
How much time are you dedicating to trading this account?
With only $5000, this seems more like a hobby interest than a serious business venture. But if you’re just looking to beat the bank’s savings interest and don’t waste too much of your time on it, then it might be worth it…
Why don’t you both put in $100, trade nano lots, and split the profits 50/50.
Prove your method before you dump more in.
It’s a lot more pressure to be trading someone else’s money.
But if the lots are penny pip size until you can prove it successful, it’s no biggy on either side.
Lunch, and a round of golf, and he’s happy.
Lose 5k, and it might not end so jolly.
I have been trading micro lots for a little while now not to long. Just actually started to log my results so I dont really have enough time yet and thats why I say to wait I little while longer to see my results. HOwever I will say since I have been following master tangs advice to not look at profit in terms of pips or money but percentage of your account I went from making a good amount but then over trading and giving it all back to winning and getting out. Since then I have turned consistent profit. But I figure I go next month trading on my live account to see where I stand profit wise. Then that might not be a bad idea both put 2500 in and go 50 50 win or loss. I just didnt want to una## that much just yet. Hmm guess I got some thinking to do. I dont want to go back to demo I see nothing but a waste on demo trading. My micro account is the same but I get something as far as profit and loss out of it. I mean dont get me wrong I have my demo to try new trading strategies for martket conditions at the time some if the market is ranging I got something for that if it is in a trend I got something of that and when I dont know what it is going to do I am working to find something for that where it dont matter up or down I can play it when it comes (that one might take a while thats what my demo is for trial and error with no repercussions). Thanks for the advice. Though from all you guys it means alot. This guy is my buddy he recommended me check out this site. He has seen me trade stocks and stuff and told me about babypips but he just cant seem to figure it out.
I think its a bad idea. If you are having to pay back half the losses that implies that he is loaning you the money(or half of it). Don’t trade with money that you don’t have.
Master Tang hit the nail on the head when he said that there is far more pressure trading with someone else’s money. Do NOT under-estimate this pressure. It is even worse when your friend knows a little something but not much about trading. You will find yourself having to justify every decision to him…this leads to you second guessing yourself.
I have a friend who could not understand why I let a trade run to 80 pips stoploss once…he said simply that I should make the stop smaller. Now normally I would give him the whole trading spiel and how my method works, but when your account is in the red, it leaves you with very little credibility to argue, since clearly you are wrong. If you were right, then the account would not be in the red. Its kinda hard to argue against the bottomline.
I also have another friend whom I traded for…I explained the risks to him ad naseum. A year down the line he will not let me forget the $500 that I lost for him.
Moral of the story, is people love you when you make money but they do not understand when you lose money.
You got a good point there. I would rather just pay the money rather than have to explain why I entered a trade that lost and why I let it go to hit my stop loss when I was watching it go the wrong way. I was not worried about pay up if I loose. But with that said I should just put the cash up at the end of the day it a better risk to reward ratio. It did sound like a good idea but the whole point of this post was pretty much something just didnt feel right. Thanks all of you for talking some sense into me. However I did calculate potential profits if I hit my 1-5% a day 10% a week and so fourth and think I will pony up the cash after another month or 2 trading my micro account(will still have my micro account just bigger positions). Thanks guys thats why I asked here first and I am glad I did. I think in the end you all told me what I already knew but it took hearing (reading) it to see it.
A while back I used to bug my banker for a loan to up my account with. I believe that if I had gotten it I would be very far now? There is the chance that if you play it with just the right plan as Tang suggests then two years would have quite profitable expectation at 14% monthly. For it to be a business would require worthwhile capital to tie one full-time ($5,000x80 local rate per shilling= 400k thankfully).
I know only one other trader and he’s four hours drive away, there’s not very many people to convince about forex, quite a friend there. Like once you show your cards they stop winning, or post on a forum your live trades at entry they usually turn on you. Either the pressure to prove it (easier to trade profitably when you’ve got nothing left to prove) or drastic shift in focus (from the charts and trading plan/psychology).
I have yet to hit consistently the target I was telling banker I would.