After you are profitable - Now what?
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Thread: After you are profitable - Now what?

  1. #1
    Now what?


    Now you have been successful in trading, after sometime of studying and struggling, you've made it. You're now making consistant profit. You've taken looses before and now you are far better than many.


    Now what? What's the next step?


    Consider it, you get a 50k account and are trading with yields of 10 percent which is about 5k a month (this sort of yields are much better then most experts out there; at percent I mean). Is that enough? Would 5K buy you that ship you desired or that car of your dre? I used to consider that, that's why I enlarged to managing accounts. However, is that enough?


    Has anybody out there thought about that? I am hoping to provoke a few thoughts in good traders and hopefully they can share ideas that will help other traders thinking about this also.


    Andrew

  2. #2
    Quote Originally Posted by ;
    Good one, thanks for understanding, sometimes all you need is someone who understands.

    Most of us would like to grow and not really leave a mark, but.... To make this worth while, all of the effort, the late nights, the long hours....

    Thanks brother in arms

    andrew
    Hey no issue, I hope it works out for you!

  3. #3
    Quote Originally Posted by ;
    I'm just wondering how the excellent traders who started with a couple thousand manage to collect billions.
    Speculating along with other people's cash, either as a job then progressing up the food chain or managing private funds.

    There's an awful lot of cash out there looking for a nice yield, especially today when yields on more conventional investments are so bad.

    Do not think about doing it, just do it....today! You are trading anyway so it's no extra work to have your live performance monitored, in a year from now you'll be wondering why you did not do it sooner

  4. #4
    Enough trouble trading types account. Combineit with other folks money and something went wrong, you have some things to describe. I think trading your own account and compounding it is ok by me. Keep in your reach or what's greed? imo

  5. #5
    Quote Originally Posted by ;
    Speculating along with other people's cash, either as a job and then progressing up the food chain or handling private funds.

    There is an awful lot of cash out there looking for a decent return, particularly today when yields more conventional investments are so poor.

    Don't consider doing it, just do it....today! You are trading anyway so it's no excess work to get your live performance tracked, in a year from now you'll be wondering why you did not do it earlier
    Are you speaking from experience?

    Some other people are suggesting the reverse and it does sound reasonable exactly what they're saying.
    I mean gets the proposal you made to Andrew worked on your own?

  6. #6
    Once you're profitable - Now what?
    Learn to be TRULY wealthy.
    Most individuals do not understand what being wealthy is. Search the internet for'Think and grow rich' and see. (audio book models can be found)
    Answer the question, what do you want from life? I believe the best response is freedom to do exactly what I like when I like. Hidden within that response is cash, the element.
    Do you have freedom when you have a job, no! Not total liberty, there's a boss or a commnt which has a piece of you. Manage different peoples money and they all have a piece of you.
    Learn how to live life to the full with what you have. On the flip side, keep it simple and use compounding. Do what you do well in trading as before but now press another key to exchange more lots; that doesn't require any extra effort or risk when as always your trade size is a percentage of account size.

    ps. Another good principle can be found within 4 hour work week, (T. Ferris) and Understanding How to exchange cuts out even more work

  7. #7
    Quote Originally Posted by ;
    Are you speaking from experience?

    Some other men and women are suggesting the reverse and it does seem reasonable exactly what they're saying.
    I mean has the proposal you made to Andrew worked for yourself?
    Compounding is not an option for the OP as he is using all his yearly yields for living expenses, his investment is really decreasing in value due to inflation.

    If he can not raise extra trading capital from elsewhere then handling a finance appears the only other viable choice. He doesn't have the money available to invest in assets which could create a better yield than he is already getting from his trading activities. The property market is not really a secure investment to your inexperienced property speculator right now, if it had been maybe he could use his capital to purchase property and raise trading capital against it by means of a loan or mortgage, then turn it about, repay the loan, and recognize a profit, rinse and repeat. Automating his egy is not likely to help, neither is spending more time with his loved ones, or spending his profits, or increasing his risk, or learning how to become'truly rich'!!

    Managing funds may be a pleasant and mutually valuable experience, or it may be a burden and a responsibility, that's why I say it's important to get the ideal kind of clients that are seasoned investors and that know and accept the risks and are comfortable leaving their supervisor to do what he does best, making money for them.

    Can I talk from experience? Yes, I have had both good and bad clients. The terrible ones left my life a misery with constant emails asking why we had a 0.5percent losing trade or I didn't trade on a certain day or I just made 0.3% one day, or so the'useful' clients who read something at the NYT and suddenly they are pros and wish to inform their supervisor how to trade! Finally I weeded out the PITA's and life became considerably simpler. My clients aren't bothered about what I do or when I do that, provided that they see an overall return they are happy.

    Using the OP's numbers of a 500k fund, a 5 percent monthly yield, and a 20 percent HWM commission. If his clients compound then within 18 months his 500k finance has become 1m, and if he carries on using the gains on his private account for living expenses and compounds his own commissions and trades them it's not tough to understand how this could snowball.

    That's assuming he is consistent and that he has reasonable risk parameters, and it's assuming he doesn't get more customer and funds to trade. That is obviously scaleable up to this point where he begins having liquidity issues, but if/when he gets to that point then I doubt it's likely to become a'difficulty' he'll head having

  8. #8
    As far as earning more cash goes, I'd love to place an excerpt from Andrew Lahde, a hedge fund manager who shut up shop and retired out of managing cash (except his own) after an 866% yield in one year. He is roughly 40 years old.

    Of course this is only relevant if you are at a place where your income and livelihood is not in danger, as Pipmutt pointed out it might be where the OP is at right now... nonetheless

    I'll no longer manage money for different institutions or people. I have enough of my wealth to manage. Some individuals, who think they've arrived at a sensible estimate of my net worth, might be surprised that I would call it stops with this type of little war chest. That's fine; I am content with my rewards. Moreover, I'll let others try to amass nine, eleven or ten figure net worths. Meanwhile, their lives suck. Appointments back , booked solid for another 3 monthsthey look ahead to both week vaion at January during which they will likely be glued to their Blackberries or other such devices. What is the point? They will be forgotten in fifty decades anyway. Steve Balmer, Steven Cohen, and Larry Ellison will be forgotten. I do not understand the heritage thing. Virtually everyone will be forgotten. Give on leaving your mark. Throw the Blackberry away and enjoy life.

  9. #9
    Smittens4212,
    pleasant trivia excerpt.



    Quote Originally Posted by ;
    For me the next step would be to automate the egy you are using (if that is possible) - that way you will still have the profits that you desire but far more spare time.
    Mikkom,
    I failed to mention this. Thank you for reminding me.
    Definitely on my to-do list once I get there.

  10. #10
    Precisely my point... by accepting huge risk on some trades to build account... ridiculous risk for absurd return... of course you REALLY have to be aware of what your doing


    Quote Originally Posted by ;
    hey guys, thanks for the reply, about accepting more risk, that's not the best way to exchange in my personal opinion, it goes against my own trading rules to take more place size and increase my own sop losses.

    I believe handling funds is a means to raise your account just by not accepting the profits from the trading account and apply the com from the profit to cover life's expenses. Allow me to give you an example:

    Account size: 50,000
    Manage ac size: 500,000
    profit for the mth: 5%
    My com on the profit (high water mark) is 20%

    The person account will make 2,500...

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