Day trading and it's authenticity?

Question

I recently got in touch with two people who are willing to do some S & P 500 day trading, they want me to invest some money with them and they will pay me from the profit they accumulate.

I am very skeptical when it comes to money dealings and nowadays you can't even trust your own shadow come to think about it. Anybody know if this is worth doing or is it pretty much a scam to get people to put money into it.

One more thing, the people I'm dealing with also mentioned that if for any reason the money is lost, I can't hold them accountable and neither can the court.

So that came to me as a surprise because these people want me to invest and they are starting off with making me feel hesitant into getting into nature of work that i've never dealt with.

What to do? I'm skeptical...any ideas???

Answer 1

run, don't walk away from this. there are reputable companies that trade, like Schwab.

also, learn more about the whole process of stock trading before you spend one dollar.

Answer 2

I was a day trader for many years, made tons of money for myself and my clients until the day we all lost everything we got in the market in seconds and even went deeper as to put some more money in to try to recuperate our losses as the market was volatile and we lost it all...I even lost my own home... Don t do it... there is tons of people making money in the market and those are the savvy experienced BIG GUYS...never do something you start off by being skeptical... This is not your field, it is very high risk and you don't know nothing about it... it is not the place to put your hard worked money in... quick profits don't exist... a dream is easy to sell ... After all if they were so great in day trading they would not need your money to start with, they would be making money for themselves and keeping all the profit since they are no Merrill Lynch or any other big corp... They are beginners and the market is always tricky... it is for the big fish who end up swallowing cold the small fish like these guys...

Answer 3

I trade my own retirement account on a regular basis and do fairly well with it.  However, I took quite a few losses at first due to the steep learning curve.  If it were easy, everyone would be doing it.

I love trading.

But, run from these guys.  Anyone doing well with trading doesn't need your money and wouldn't feel comfortable taking it.  Trading with someone else's money is a huge responsibility.  There are no guarantees and all good traders know this.  None of them make  promises as to what the market will do.  There are too many variables.

As I said earlier, keep your money and run away from these guys.

Answer 4

If you have enough money to day trade you could do it yourself with an online brokerage account you dont need anyone else.  No one knows what the market will do and you could lose your shirt.  Its risky by nature. I wouldnt expect you could hold them liable.  That makes sense.

Answer 5

Always trust your instinct. You gut is telling you not to do it. I think the reason you are even considering their offer is that they are using influence on you. These guys could be close friends, even family.

- ask for proof of performance. They should have trading records, testimonials. The numbers should show you that their method works, and the testimonials should tell you that they do give people their rightful share of the profits.

- If you find it hard to say no, then give them money you can afford to lose.

It is good that these folks are giving you the downside of their proposition, but it is not entirely true that they cannot be held accountable if they lose your money from their trading activity.  You may need to consult your financial advisors about these matters if you will accept their proposal.

Not all fund managers are swindlers, as some peole here claim. There are about 20,000 professionals who manage funds today. A majority of these professionals are doing a great job for their clients, making their money grow.

I wish you the best! http://jsforex.blogspot.com

Answer 6

There are two issues;

A.  Understanding what you're investing in.

B.  Trusting the people doing the investing.

No one can trade stocks legally for other people without out an honest disclosure of the risks.  With day trading a good trader may only get 40% of their trades correct. The key is having large winners and very small ,lossers.

You should never have more than 5% of your portfolio in an account that day trades.  The risk of lossing 50% or more is way too high.

You apperantly have no understanding of this process. Until you do (which, for most people, can take years) it would make no sense to get involved in this.

I can't comment on the people doing this trading. There's too much to know to write here. The fact that they say they can't be responsible for losses is a good thing.  It means they are being honest (on at least this part).

Take a few years to understand stock investing and trading. Learn and understand the risks. Know what to look for. Never give more than 5% of your assets to such as risky investment.

Answer 7

It's a scam known as a ponzai scheme. They don't even bother investing, they just accept your money and disappear.