After my reasonable success over the last three months of trading I have on several of occassions, friends have raised the topic of the potential for investment. I always say that I would love to have someone invest their money in me as it would give me the opportunity to great improve the credibility and impressiveness of my trading record and ability. I could go from a 1000 USD account, to a 10,000 USD or more with more investors, be able to pay them out and take a commission for myself with much less risk than many other investments. But I also say that trying to stay in the "10% of successful day traders" can be tough and is not always possible leaving the potential for not only high profits but as you all know, large losses. Looking at my record and minor adjustments to my trading strategies that I make to make them evermore efficient and profitable the risk of loss gradually becomes less and less but is always still there. When it comes to investment I think I would grasp the opportunity with both hands and make the most of it - afterall, how else would I be able to eventually manage a hedge fund without a proven record?!
In my last segment I mentioned a good deal about my Christmas Challenge and the profits I was able to return. Overall in the last three months I have been able to go from effectively, 500 USD total investment (200 at the start and 300 later on) to a finishing balance of 1978 USD. To save you the maths (and I hope mine is right, feel free to double check) that is a return on investment of 295.6%. I read about many attempting 10% or even 12% - I have not yet read about this kind of success other than in old threads of FXCM's challenges where only ten people in the same account bracket as me were able to return over 300%. I am impressed with my trading record but will never shout about it being amazing or anything because I worry that the second I become over confident and think that my trading is invincible, that is when I will fail and so I must always, like every trader, keep my wits about me and be sensible.
My thoughts quickly turn to what I would be able to do with an account that an investor let me manage - would I be able to give the same returns? Would I be too scared to trade effectively? Would they expect too much of me? Well, the reality is it would be no different to trading with my own real money - investors are not stupid and would not put all of their eggs in one basket (surely?). My record though is relatively good and I think I could do wonders with a larger account which without investment I would aim to build to in any case.
Before I finish, a quick maths check. On my account I went from 500 USD to 1978 USD, in three months. 295.6% ROI. Even with my newest strategy all of a week old, I have gone from 500 USD to 600 USD in a week - 20% return. If someone were to invest I feel confident that I could repeat this kind of return and potentially turn a 5,000 USD account into a 10,000 USD account very quickly - my only problem is I would have no idea of the rules of investment, when I pay out, what type of returns the investor expects etc... Where would I even start!? Of course I also don't know of investment traps that I could get caught in or tricks that might be played on me. I have no idea about it to be honest but if anyone has any suggestions then please let me know, Tweet @fxamateurtrader or e-mail fxamateurtraderuk@hotmail.co.uk
To anybody thinking that investing in my forex trading would be "too risky" to put it in perspective, I have a good record, I have a higher chance of returns than playing the lottery and while your money would be safer in a bank, 0.5% ANNUALLY (remember mine is over just a quarter) isn't very good in comparison! Please let me know your thoughts and thanks for reading! My next update probably won't be until the New Year, so Happy New Year to you all, have a good one!
*sorry for any spelling errors etc, I did write this in a hurry, hope it makes sense!*
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