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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: Sequoia Holdings who wrote (829)	7/9/1998 12:39:00 AM
From: Darren	Respond to of 1729

What cut would /should I ask for as the backer? Depends on the method and the trader. Best for the trader (i.e. taxes) is a loan at whatever interest rate you can get from him/her -- I've heard anywhere from 10% to 30%. I've also heard of split deals where you get a minimum interest payment each month no matter what, say 10%, and 20% of net profits. A good trader can make everybody money in such a deal, an average trader will be suffocated. Are there any legal issues with backing another trader. Legal issues include a) classification of trader as professional, b) secured loan against what (house, car, etc?) I would advise you see an attorney regarding the drafting of a contract...

To: Sequoia Holdings who wrote (829)	7/9/1998 2:01:00 AM
From: Don Williams	Respond to of 1729

NoonTime If the friend needs to raise capital so he can daytrade, it appears that he has either no experience daytrading or a bad experience daytrading. Either way, I wouldn't "back" anyone until I was convinced that they knew what they were doing. As for the cut, that is widely negotiable. I have traded others funds for 15% of the profit, which they and I felt fair. I sure wouldn't pay someone over 20%. Good Trading Don

To: Sequoia Holdings who wrote (829)	7/11/1998 1:03:00 AM
From: Robert Graham	Read Replies (1) \| Respond to of 1729

If your friend cannot raise the stake himself from his own trading so he can trade full-time, this should tell you something. Besides, you know what they say about money between friends. IMO a good friend would not be going to you for money to be used in a speculative nature. And he is going to look out for his own needs first like paying the bills and stashing some money away before you see any return back. IMO this is not a good idea. Say goodbye to the future of this friendship if you choose to pursue this "opportunity". Bob Graham