On the verge of opening an underground fund

[ROE]

DH70 maybe you should team up with shezian from shares vs properties thread

 

[Julia]

DH70 maybe you should team up with shezian from shares vs properties thread

 

[cynic]

Hahahaha pinkboy, theres always a way roybd the system if u dig deep enough. If goldman sachs can bet against its own clients and get away in some fashion the we all can haha.

Errmmm. Have you seen the film "Too big to Fail"?

Unlike Goldman Sachs, you're not big enough to hold the entire Western Economy (and hence the authorities) to ransom!

 

[DeepState]

Too big to Fail

Actually, DH70's greatest defense is that he is "too small to bother with". And...in reality, that is a pretty strong defense.

 

[brty]

DH,
Let's assume you and your friends find $10k to start this venture, with the set up along some suggested posts earlier.
What will be your first investment? How much of the $10k will you put into it? What are your profit and loss levels for it?
Just interested.

brty

 

[darkhorse70]

Haha I was kidding with the goldman sachs thing. I was just watching a doco about it so I just said it for the laughs. Brty well atm I was honing in on twitter/tesla and facebook. Actually uve had my eyes on them for about 2 months. Fb was trading at around 60$ then I think tesla was around the 200 mark and twitter was some where in the 30s. Im not saying ive made a correct analysis but they are all in an upward trend. Twitter is my best pick atm just because its halved in price since about may or so. Cant fully remember. The point was I felt as though the drop was fueled by hysteria and also the ipo rule which let internal shareholders sell out exacberated the situation. After hitting close to its ipo price its rebounded broke that downtrend with bullish volumes. My firt target for twitter is around 46$ / 50s and eventually 70 (all time high). I always go back to the basic question which regards supply and demand. Is this an accumilation phase or distribution. Atm it looks as if the demand is soaking up the waves of supply at resistancw points if not in the first attempt then the second. I believe twitterR/R is superior compared to fb and tesla. Also it doesnt have as much outstanding shares as fb and its relatively cheaper which attracts more potential traders investors. My overall picture of the general markets is skeptical. Its been 5 years since the bottom, QE is wrapping up, interest rates are near the bottom, the governments of the US are maxxes out, the markrts are abiut 20-30% above their previous high (US). So what I believe on my hands is potential bear market around the corner. Hence im waiting on the sidelines for some sort of confirmation. If I did have money id most likely go all in on twitter depending on the earnings result. If its positive and confirmed by volume ill go long at important pivot points. However im really waiting for god shorting positions in general. Since ill be trading american markets my stops will have to be a bit wider (the brokerage fees will kill me if not). I rekon the US markets have better liquidity and better oppurtunities imo (more volatility). Ive realised im not a good day trader, I start to go nuts because of the manic depressive state it puts me in. My favourite book is market wizards because its got alot if goood points which ill try to incorporate in my trading. Mainly dont think about making money and be defensive. Just strike at the perfect time. Perception is reality and if I pretend like im a calm amd collect, cool header trader. If I use that as an alter ego it could help me be less impulsive. As for risk management I might risk 3-5% per trade when I have a high conviction of the trade going my way. Honestly I feel as though trading is an art and it hardly ever goes as planned so I dont know what will happen. Hopefully this bull market continues. From what ive read alot of successful traders had luck of the markets at their hand when they first started which gave them enough time to learn before the hard times struck. This is just a summary of my trade but atm I feel like my analysis on my 3 chosen prospects have been acting the way I wanted them.

 

[darkhorse70]

Oh yeah and one of my main points on twitter was that who ever held on to twitter must have had some iron guts. They didnt get shaken out, maybe it was big imstitutions. Hence unless it kept going south violently there would be very little supply. I also believe they are absorbing the demand and will plan to distribute some time in the future. Im just trying to be a good tape reader and get a sense of whata going on in the back scenes. Im not really interested in fundamentals. I believe volume and price action cam paint the whole picture and honestlt I failed accounting thrice hahaha .

 

[darkhorse70]

This forum is intimidating for noobies. Imo it intimidates noobs because of the vast amoubt of knowledge the veterans have. They put up threads which I can barely understand. Imo it makes others feel like if they cant ubderstand it how in the world are you ever going to succeed in trading. But I believe trading can be simple and understanding the basics can take you far. With a combo of discipline,risk management and some basic tape skills and good luck it can happen.I say this because there have been alot of well known famous traders who all made it young. They didnt know half the things this forum talks about. Im not saying its not usefull but I dont discourage myself by all the threads being posted.

 

[explod]

This forum is intimidating for noobies. Imo it intimidates noobs because of the vast amoubt of knowledge the veterans have. They put up threads which I can barely understand. Imo it makes others feel like if they cant ubderstand it how in the world are you ever going to succeed in trading. But I believe trading can be simple and understanding the basics can take you far. With a combo of discipline,risk management and some basic tape skills and good luck it can happen.I say this because there have been alot of well known famous traders who all made it young. They didnt know half the things this forum talks about. Im not saying its not usefull but I dont discourage myself by all the threads being posted.

Good post. Always listen but knoq how to follow yourself.

I still love mulling over William GANN who created point and figure charting and traded off seasonal trends. 1940s i think.

Probably off topic but just wanted to clap and say "keep it simple stupid " is the way.

 

[Craton]

DH70, haha indeed!

Your last few posts make far better reading, good analysis and fair point re. noobies. Just remember that we all started out as a noob too you know, but starting is better than not starting.

FWIW, I started with a mere $3.5K a little over 15yrs ago, was a renter with only that as savings. That investment has allowed me to own outright my PPOR and much, much more.

 

[Julia]

This forum is intimidating for noobies. Imo it intimidates noobs because of the vast amoubt of knowledge the veterans have. They put up threads which I can barely understand.

Perhaps think of it a bit differently. It's not the forum that's intimidating, is it? Rather the realisation that there's a great deal to be learned before becoming even half competent.

All of us who have been using markets for a few decades also knew next to nothing when we started. I'd even say that I've learned more from people on this forum in the last ten years than I knew in all the time prior to becoming a member.

I think you will find that, if you ask what you want to know politely, don't go round making insulting assumptions about people etc., most members here will be more than happy to try to help. That has certainly been my experience.

Try understanding how it comes across to others that a very young person, no real life financial experience (and that's not a criticism, just a reflection of where we all were once), proposes some scheme which is more than likely illegal and - in light of the inexperience - likely to fail. We've all seen it before: mighty aspirations which quickly fall apart, taking friendships and trust with them into the rubble.

Wouldn't it seem more logical to use your own real money to do some actual investing/trading to demonstrate whether you do have the extraordinary skills you believe you have?
If anyone asked me to invest/trade with their money I wouldn't consider it for a second. Neither would I give my money to anyone, even those here who I know are skilled traders, to trade on my behalf, any more than I'd give it to a licensed fund manager whose results often do not justify the fees they charge.

But then, I'm careful, and risk averse. You might be some wonder whizzkid who can do what almost no one has done before. If that's what you believe, then good luck. The line between self-belief and delusion can be slight.

 

[pinkboy]

Thats A+ from Julia.

pinkboy

 

[darkhorse70]

Thanks explod, craton. Julia I understand every thing u just said and I couldnt agree more. I dont think im an exception to the rule and I dont believe im more talented then any one else. I never insult people. I only say stupid stuff when im attacked. The matter of trading and opening a possible fund are to totally different subjects. Maybe I should have put up a different title some thing like requirements of opening a small capital fund. Your are right about theres a great deal to learn but my point is how much is necessary and how much is just "junk" (it could aid your trading but is not the key driver). I just scratch my head when a 20 something year old makes a fortune and I doubt that they had that many things to learn. It was knowing a few basic rules very well imo back in the 80s etc. Maybe the markets have changes. Say I wait till I know the amount of knowledge you have. Im going to have to study the markets for a decade or two. Even then can I manage to get great returns constantly. Can I trade like a pro. Its my opinion hence that trading is more of a learn the necessary stuff (the basics), create or adopt some important trading rules and start. How ever that may be. People go in business all the time. If a VC loses money he accepts it and walks. I hope that people who come to me of it ever gets that far understand my abilities and ill male that clearer than day light. Im not a con man and never have been. Instead of encouragement and guidance, if your attacked for having big ideas realistic or not I dont see how that is productive. Im young and still have alot to learn in alot of things. Even pros make mistakes but thats how you learn. I dont know I have faith that I can succeed if I dont sucumb to human flaws like emotion. Thats where I could come undone but why would I give up a possible great oppurtunity sides if theres any time in life when you can rebound from potential failure its when you are young with no family or liabilities. I live with my parents and I have no real demands. I can be fully committed. Either way I come in peace haha.

 

[darkhorse70]

Plus if things are just rolling. Your getting a big dream and its piecing together its a great drive. You start working harder. You start to believe it can be dome. When you trade a small account slowly, the bhzz eventually dies out like everything. I believe. So feed your dream. Do what you got to keep you motivated to go forward. To make your hunger bigger.

 

[darkhorse70]

My friend came up with this simple contract. As for how much capital is going to be generated atm its only $1000 by one friend if that. Ive also come up with a semi business plan but for me this is a fun project I can undertake with my friend and learn at the same time. Im going to have about $10000 by the end of the month of my own money but if some friends wish to contribute im happy to take their money if they understood all the risks etc. I just attatched a photo of the legal contract my friend came up with.

We are not sure if its a binding contract since the legal system can possibly over rule it in an instant haha. The contract is more to show our friends that we are acting as ' professional' as possible and take this seriously. Any thoughts on the contract. Its not fully done yet, its a working progress.

 

[darkhorse70]

Im probably incriminating myself by creating this contract as it is proof of the existence of a business which is not accepted by law but I want to act as legit as possible. This person investing her money with me is not really aware of the financial markets etc and probably not the brightest when it comes to maths. Shes a woman by the way haha (no offence). I dont think she even understands the fact that if your capital base is so small, it really isnt even worth it. Im not sure what shes expecting even though the business plan goes through all that etc. Maybe she might build confidence in me, later down the track if all goes well. As i stood in my friends home, discussing the contract etc, we were laughing and saying isn't this how things start. To friends together, having a vision and it slowly starting to take form. We shall see what happens.

 

[pinkboy]

Even verbal contracts are enforcable by law, so dont think for a second that something like this isnt a biding agreement.

You need way more details.

What happens if you go bankrupt, divorced, incapacitated, death - now or in the future in this contracted period?

You're treading a fine line.


pinkboy

 

[trainspotter]

http://www.asic.gov.au/asic/asic.nsf/byheadline/Certificates+issued+by+a+qualified+accountant

Go and do some research before you do some damage

 

[darkhorse70]

Hmm pinkboy, Ill have to add those stuff to then. Ill just tell my friend that we should consider those stuff. Ill just give him points and hell expand on it etc. As long as I have limited liability, then thats the main issue solved. As i said this is nuthing serious yet. Its all going to be traded off a personal account. Not even registered as a business yet. I doubt my profit will even exceed the first tax bracket.

haha trainspotter. I think im going to have to get in touch with a family friend. His a multimillionaire maybe has like 30+ Million. Maybe I can ask him to please speak to his lawyer etc for some sound advice. All these government websites are mumbo jumbo to me. I just want to know the quickest, easiest avenue to set some small thing up, where i can manage my friends money, a small sum if it came to that level without any issues.

We cant ride dirt bikes on tracks, we cant have paintball guns, we cant even protest, a cop can pull you over and search you with no reasonable evidence. What a load of rubbish. All these rules, restrictions, minimum wages, taxes, rules and regulations are sickening.

My dad had 30% share in a company and his scum bag partner liquidated the whole company and kept all the money. Lawyers con every one, and its hardly even clear if we will get our money back. Democracy, justice, not even close hahaha.

 

[darkhorse70]

I wish I lived in the 70's. Just start a business, pay your tax, try to be honest and go home. The system tries to bury you today before you have even tried to put one step out.