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100k for 6 months

post #1 of 8
Thread Starter 
I have a family friend who has 100k of extra capital they are willing to let me trade for the next 6 months. I've been trading in the stock market for the past 3 years, with the last year being strictly options. I stay pretty consistent with my options gains and implement a very strict money management regimen. Even so however I was looking for a much less volatile environment than the options world.

I'm looking for an investment vehicle I can actively manage, which carries significantly less risk than stocks or options. What would you use if you had 100k, but wanted to be actively trading...
post #2 of 8
Quote:
Originally Posted by XxJohnBullnutsxX View Post
I have a family friend who has 100k of extra capital they are willing to let me trade for the next 6 months. I've been trading in the stock market for the past 3 years, with the last year being strictly options. I stay pretty consistent with my options gains and implement a very strict money management regimen. Even so however I was looking for a much less volatile environment than the options world.

I'm looking for an investment vehicle I can actively manage, which carries significantly less risk than stocks or options. What would you use if you had 100k, but wanted to be actively trading...
Split your money between stock, bonds, and cash. maybe like 30 - 60 - 10. It really depends on the amount of risk you are willing to accept and how involved you want to be with your money.
post #3 of 8
Quote:
Originally Posted by antishatter View Post
Split your money between stock, bonds, and cash. maybe like 30 - 60 - 10. It really depends on the amount of risk you are willing to accept and how involved you want to be with your money.
That would be good if you had a larger time frame. I wouldn't venture into bonds unless you are an experienced bond trader they can be kind of trickey. I would say your best bet is to trade non leveraged ETFs such as spy or another index ETF you are familiar with. Since you say you've been trading options lately possibly using some of the complex options strategies with LEAPs on ETFs might be best suited for you.
post #4 of 8
I need a few freinds like that...
post #5 of 8
Quote:
Originally Posted by OldFart View Post
I need a few freinds like that...
agreed, does OP have any young girls whos just turned 18 in the family? I have just become single and am available
post #6 of 8
Quote:
Originally Posted by Norlan View Post
agreed, does OP have any young girls whos just turned 18 in the family? I have just become single and am available
post #7 of 8
Quote:
Originally Posted by Crazed98 View Post
That would be good if you had a larger time frame. I wouldn't venture into bonds unless you are an experienced bond trader they can be kind of trickey. I would say your best bet is to trade non leveraged ETFs such as spy or another index ETF you are familiar with. Since you say you've been trading options lately possibly using some of the complex options strategies with LEAPs on ETFs might be best suited for you.
Exactly what Crazed said.

Do NOT buy bonds, especially here.

Short the bond market, if anything right here. Next week especially .

To the OP, be wary accepting this offer. Make sure this family friend is alright with losing $100k; it also seems as though he's not looking to make anything from it, but if he does want some gains, make sure you make a written contract and you <both> know the terms. Open a new brokerage account, trade it in his name if you're young, and MAKE SURE you paper $100k first.

The $25k mark is very different from the $2-5k marks. Likewise, the $100k mark is different from the $25k-$50k mark. Trading a larger account is much different and more difficult (unless you have unlimited capital..damn institutions....). You'll want to make sure you can handle it first; same strategies apply, but risk management must be tighter if you're strictly trading options.

As Crazed said, start learning some options strategies. Sell premium, get some credit and debit spreads going and make some money .

It's safer, easier, and you'll net 25% at least in a year easily with some solid strategies and playing the time decay to work in your favor.

Kudos, and good luck to you.
post #8 of 8

Do what you are Good at

Why don't you keep on trading with this addition of capital the same way you have been. Basically don't change anything and continue using your same money management system.

My 2 cents
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