Please explain Nephew new 'business' !
Discussion
OK, so met 24 year old Nephew yesterday, and he tried to explain his 'day trading' and needs support (which I think means, more capital !). Should I be worried, interested, support him....??? Help !
So, did 'investment' subject at University, so is technically smart, and yet is living in shared flat (owned by parents and other tenants pay his bills), day trading full-time, but with a Capital base of only USD 18000, loaned from parents. Been doing it for 6 months now.
Brexit knocked a whole out of his capital, as didn't expect it....and was 'over leveraged' on a currency. Capital now USD 15,000.
Trades currency swaps (?), taking long and short positions, executing he says some 5-6 times per day, and aims for profit of 0.1% per day, per 1-2% per month.
It's all charts, technical analysis.... Uses www.admiralmarkets.com account.
From my eye, he doesn't have enough Capital, regardless how good he is. I worry that he doesn't manage his risks, and should not be leveraging. But I don't understand this topic, as I only focus or 'broadly understand' bigcap FTSE 100 companies.
Help ! As Uncle, I feel like I should help, or warn, or support....
Thanks, Big Ant
So, did 'investment' subject at University, so is technically smart, and yet is living in shared flat (owned by parents and other tenants pay his bills), day trading full-time, but with a Capital base of only USD 18000, loaned from parents. Been doing it for 6 months now.
Brexit knocked a whole out of his capital, as didn't expect it....and was 'over leveraged' on a currency. Capital now USD 15,000.
Trades currency swaps (?), taking long and short positions, executing he says some 5-6 times per day, and aims for profit of 0.1% per day, per 1-2% per month.
It's all charts, technical analysis.... Uses www.admiralmarkets.com account.
From my eye, he doesn't have enough Capital, regardless how good he is. I worry that he doesn't manage his risks, and should not be leveraging. But I don't understand this topic, as I only focus or 'broadly understand' bigcap FTSE 100 companies.
Help ! As Uncle, I feel like I should help, or warn, or support....
Thanks, Big Ant
No, sorry, he started 6 months ago with parent loan of USD 18k, Brexit blew hole, so now down to 15k....and trying to repair / grow back from there.
Trades currencies (?), lots of tiny 'bites' and targets 0.1% per day.
Living off money from renting 2-3 rooms in a flat he has use of for free from parents.
It's the trading I don't understand - risks, possibilities, etc. Is he dreaming ? Impossible to grow fast enough ad draw any income etc ?
BA
Trades currencies (?), lots of tiny 'bites' and targets 0.1% per day.
Living off money from renting 2-3 rooms in a flat he has use of for free from parents.
It's the trading I don't understand - risks, possibilities, etc. Is he dreaming ? Impossible to grow fast enough ad draw any income etc ?
BA
My apologies, yes, you're right, net of 6 months trading....he's down USD 3k.
He talks about 'developing a product'....getting a few clients....building his own 'trading firm'...'in 5 years going sailing for 2 years, trading from satellite connection'...
My head was all over the place.
Awoke this morning, bloody head still not sure if the long discussion was real, but it was.
Full-time trading, focused around macro-events or news (e.g. GDP, Interest Rates, Employment stats...), trading currency pairs or 'tri-arges' (if that's how you spell it).
Leaves me feeling a little sad....
He is technically smart, clean living, multi-lingual....
Uncle BA
He talks about 'developing a product'....getting a few clients....building his own 'trading firm'...'in 5 years going sailing for 2 years, trading from satellite connection'...
My head was all over the place.
Awoke this morning, bloody head still not sure if the long discussion was real, but it was.
Full-time trading, focused around macro-events or news (e.g. GDP, Interest Rates, Employment stats...), trading currency pairs or 'tri-arges' (if that's how you spell it).
Leaves me feeling a little sad....
He is technically smart, clean living, multi-lingual....
Uncle BA
big ant said:
RRG,
Indeed. I think the flat 'free usage' may get pulled at some time soon, few more months. Perhaps this is their way of giving him a chance to play his 'I want to be a trader' game, realise isn't so easy.....and get a job in Big 4 or a fund or something related.
It's a possibility isn't it. Bit of a tough lesson though if you take it to its probable conclusion! Indeed. I think the flat 'free usage' may get pulled at some time soon, few more months. Perhaps this is their way of giving him a chance to play his 'I want to be a trader' game, realise isn't so easy.....and get a job in Big 4 or a fund or something related.
He'll be one year older than he could have been for applying to investment houses, and up against younger and more malleable competition, not sure it's a good lesson.
big ant said:
My apologies, yes, you're right, net of 6 months trading....he's down USD 3k.
He talks about 'developing a product'....getting a few clients....building his own 'trading firm'...'in 5 years going sailing for 2 years, trading from satellite connection'...
My head was all over the place.
Awoke this morning, bloody head still not sure if the long discussion was real, but it was.
Full-time trading, focused around macro-events or news (e.g. GDP, Interest Rates, Employment stats...), trading currency pairs or 'tri-arges' (if that's how you spell it).
Leaves me feeling a little sad....
He is technically smart, clean living, multi-lingual....
Uncle BA
Sounds like he thinks he has invented pyramid selling....He talks about 'developing a product'....getting a few clients....building his own 'trading firm'...'in 5 years going sailing for 2 years, trading from satellite connection'...
My head was all over the place.
Awoke this morning, bloody head still not sure if the long discussion was real, but it was.
Full-time trading, focused around macro-events or news (e.g. GDP, Interest Rates, Employment stats...), trading currency pairs or 'tri-arges' (if that's how you spell it).
Leaves me feeling a little sad....
He is technically smart, clean living, multi-lingual....
Uncle BA
Ok. He's punting with parents money while living in a property financed mostly by his parents? That alone is part of the problem.
Secondly, he didn't see Brexit coming. The date of the Brexit vote was pretty well published in advance. It was impossible for a trader to have taken a hit over the result. A gambler with no regard for risk could have done but not a trader.
I'm afraid the reality is that it's not a business but a piss take of gullible parents who need to shut him down and starve him into getting a real job from which he can start trading using his own income.
Re the technical aspect of generating an income from an 18k trading pot, you're looking at about £2k per annum if trading rather than gambling.
Secondly, he didn't see Brexit coming. The date of the Brexit vote was pretty well published in advance. It was impossible for a trader to have taken a hit over the result. A gambler with no regard for risk could have done but not a trader.
I'm afraid the reality is that it's not a business but a piss take of gullible parents who need to shut him down and starve him into getting a real job from which he can start trading using his own income.
Re the technical aspect of generating an income from an 18k trading pot, you're looking at about £2k per annum if trading rather than gambling.
big ant said:
He talks about 'developing a product'....getting a few clients....building his own 'trading firm'...'in 5 years going sailing for 2 years, trading from satellite connection'...
Yup. Totally delusional. And if he actually tried to implement that plan then he'd end up in prison. Besides, no one trades from a satellite connection. That is fanciful b
ks made up by stty little bookmakers to dupe dimwits. You might want to check who he follows on Instagram : http://www.pistonheads.com/gassing/topic.asp?h=0&a...
He's likely seen these guys driving their Gold Bentleys and thinks he can do the same.
I agree with some comments above, get it shut down asap - going to a job interview and explaining that you've been day trading for a year and making a loss is unlikely to be a selling point. You can hide a couple of months void in a CV but 12 months will be hard to explain, and he definitely won't want to tell them what he's actually been doing.
He's likely seen these guys driving their Gold Bentleys and thinks he can do the same.
I agree with some comments above, get it shut down asap - going to a job interview and explaining that you've been day trading for a year and making a loss is unlikely to be a selling point. You can hide a couple of months void in a CV but 12 months will be hard to explain, and he definitely won't want to tell them what he's actually been doing.
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