In this month’s (September 2012) SmartMoney magazine, they ran an article about normal people who are trying to make their fortunes by trading. It kinda reminded me of the Tech Bubble when every article was about normal Joes making a killing day trading, and the housing bubble when everyone and their mother was out there flipping houses.
One of the profiles caught my eye. The guy’s name is Patrick, 43, and he used to work at Washington Mutual until he got laid off. So he moved back in with his parents to save money and spent a year learning how to sell options. After numerous courses and seminars, he decided to focus on iron Condors and spent 6 months trading condors in a small account.
All of this is great. He seems serious and really wants to learn to trade. More power to him.
What pissed me off was the fact that he just got licensed as a Registered Investment Advisor (RIA) and wants people to give him money so he can trade condors for them.
This guy, who at 43, lives with his parents, has less than $100k to his name, hasn’t been trading for more than a couple years, wants others to let him trade for them?
Could this be the problem with the financial management industry? That people with no experience, no track record, and who frankly do not even know what they claim to know get to gamble with other peoples’ money.
Sheesh. This guy’s trading makes him so stressed out that he had to take up boxing to relief the stress. He can’t even discuss what he does with his parents because it freaks them out. He gets up at 2 am to watch what the European markets are doing. Oh, and he meets potential investors at Starbucks because of course the only alternative is to have them come to his childhood bedroom.
Hey Patrick, how about you:
- Make enough from your own trading to pay your own bills.
- Trade well enough to beat the markets for at least 5 years
- Stop mooching off your parents
And after all that, then you try to do the same with someone else’s money. Because in the beginning who is going to give you money to manage besides your friends and family? And once you lose their money, you are going to need a lot more than boxing lessons to relive the stress. Or maybe the boxing lessons are for self defense incase angry investors hunt you down after you lose their money.
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