Helloooo. I was reading around again and some discussions got me interested in the idea of people trading for other people. Haha. I’m sure a lot of you guys here (including myself) would prefer to trade ourselves. But I just got curious, what would convince you to trade for someone else?
That’s a great question, but I think it’s the wrong way around!
Maybe you should be asking: Would you allow someone else to trade for you?
After all, anyone can say they’ll happily trade for someone else, as it’s no risk to them!
I would say don’t trade for others as their mind set and expectations would probably be different from yours, this could also affect your performance.
Just point them in the right direction eg babypips and let them make their own decisions.
Help them, by all means, but just be responsible for yourself and let others be responsible for themselves.
If my own trading outcomes were a lot more stable I would have no hesitation trading for someone else. But it would be by my trading strategies, plans and outcomes, so that is unlikely to happen with any corporate body. I have never needed anyone else’s capital to trade with and would be a little reticent to do that unless I had better results from my own trading than I have today.
Ria, you’re ready to take my money? Yes!
If I were to trade for someone else, I’d need a solid plan with a proven track record.
But the thing is, we’d have to be in the same frequency when it comes to trading style. Risk management, strategy preferences. Because everyone has their own unique preferences.
Good point. Hahaha. I just figured a lot of traders here are very experienced (just like you) and a lot wouldn’t want to put their reputation at stake or something.
Definitely! Haha. I feel like this should be common practice. But for example, someone’s super desperate to get you to trade for them, what do they have to do or give to convince you? HAHA.
Thanks Mondeoman! I actually feel like this would be the same for me. Like, once I become confident with my skills and the outcomes I can deliver, I’d probably give it a go but with a whole lot of disclaimers.
If you’re ready to just give it away with no strings attached, then by all means!
Yeah agree. Very important that you’re on the same page when it comes to those things. But if you’re trading for a newbie or someone who barely knows anything about trading (who just happens to have a lot of money to spare), only the outcome would matter.
for me (and i’ve often traded for someone else, during my career), the reasons were always more or less the same as those of almost everyone who trades for someone else, i think
in some order (not necessarily this order) they include:
being paid a steady basic salary
being able to earn far more in bonus payments by trading with someone else’s huge funds than my own much smaller one
other perks of being employed (health insurance, paid vacation entitlement, usually subsidized mortgage, + whatever else)
basically “advantages of being employed rather than self-employed”, in other words
there are some disadvantages, too, of course, but very few and minor ones, by comparison, when you look at the amounts of money involved and the fact that almost all “trading floors” are more-or-less “virtual trading floors”, these days (that’s not just because of covid: it was gradually happening throughout the industry even before the pandemic)
That’s an interesting bit! The stability of “employment” even while trading forex is somehow comforting. But, whenever you lose while trading for others, how did that make you feel?
like anyone trading for any kind of fund/institution, i always had a risk manager (except once when i was - briefly! - employed as the “acting risk manager” myself, lol!) and all these employers know that all traders always have some losing trades, so that doesn’t matter, as long as you keep to your loss limits
you have to be profitable overall, of course, and you have to have a long and verified record of that to get a job in the first place (apart from your very first job as a graduate trainee, where someone is admittedly “taking a chance” on you, to some extent, but also watching you very carefully and strictly and limiting the damage you can do!)
Ummmm, to be convinced for such trading I need a guarantee that there will be no repercussions when I smoke his account.
Oooooh. Haha. How did that go? It’s super interesting for me since I’ve always known you were an experienced trader, but not in this regard (if that makes sense ).
Who dictates this? Or how is it determined? I’m sorry for the many questions. I’m not interested in trading for anyone else, but it’s just fascinating for me so I wanna understand the process.
Tbh, same. Haha. This will be very tempting.