Money Management Firm

[Gaulkin]

Anyone have any information on a startup money management firm? I would like to start one when i graduate college and management people money for them. I don't want to be a stock broker but employ stock brokers and work along side of them. The one thing i do NOT want to do is move to NYC and i think that might hinder my success.

[Gaulkin]

bumppppppppppp?

[StealYourDreams]

Is it just me or do you change what you want to do every week? Anyway, to answer your question I think you're basically looking to purchase a broker dealer.

See this:

Guide to Broker-Dealer Registration (April 2008)

And this:

Find Broker Dealers for Buying & Selling-BDMarket.com

for more ideas. Do you have to have a Wall St. address? No. There are a lot of hurdles for someone with no track record and a small shop. You may end up being a top hedge fund manager, who knows.

Unless you're planning on getting your post graduate degree from harvard you may be better off carving out a niche for yourself. It's a lot different managing peoples portfolios than trading your own account.

When I say niche I'm thinking of mini SPACS (barely in compliance with rule 419), 10Sb shells, and mini PIPES for which I believe a huge market exists. Lately the PIPES have been moving from requiring companies they invest in to be public to investing in the private arena, i.e contingent upon a registration statement or reverse merger.

[tbeer22]

No one is going to let you manage their money unless you can show them a track record.

That's the utmost important thing you need to keep in mind. From there, you will need to take classes and pass various tests to comply with SEC these include series 7 and some other tests....

From there you will need to "market" your services to high-end clients while soliciting within the legal parameters allowed. You have some considerable competition... what makes your management team better??!?

From there, you will only be able to receive a 1 or 2 management fee and your rake of the profits can't be too hoggish if you actually want to attract clients...

I've dealt with VC's, Hedge Fund managers and Asset management companies and these doods are no joke. They are smart, disciplined and credible. If you want to follow this path, I would suggest first working on managing and organizing your investments. In a couple years when your out of school, you might get a break. You don't need to gravitate to Wall Street, but you better move somewhere where there's money, if you don't have any connections with some wealthy people and you don't plan on moving to make them, try another business....

[Gaulkin]

I don't change what i want to do every week, i explore my opportunities but thanks for asking. The only dumb question is the question not asked. I trade every day and i know what im doing, therefore i would like to manage peoples money.

[StealYourDreams]

I don't change what i want to do every week, i explore my opportunities but thanks for asking. The only dumb question is the question not asked. I trade every day and i know what im doing, therefore i would like to manage peoples money.

You sound like a condesending punk to me, good luck sounds like you have all the answers at 19.

[Gaulkin]

You sound like a condesending punk to me, good luck sounds like you have all the answers at 19.

Sticks and stones.

[Mega B]

Can you guys chill out please and cut out the personal attacks

YE moderator.

[rogercbryan]

Get a job with a top brokerage house for 5-10 years... then maybe you'll have the experience and reputation to start your own firm. I just don't see how you could do it any other way... unless your parents are going to give you $10M to get you started...

[Gaulkin]

Or i could make 10M in the market and start my own firm.

[rogercbryan]

Or i could make 10M in the market and start my own firm.

you could... how much do you have to start with?

[Gaulkin]

Id prefer not to discuss numbers over the internet but its enough. I trade a lot different then the average investor. I will put all my money into one stock and use margin at the same time to make the most money possible in the fastest amount of time. This probably is the riskiest way to trade stocks but i find it the most thrilling and im doing pretty well at it. I will tell you that im up 15% this year even in this terrible market.

[jasaunders]

I don't even know where to begin, because it sounds like you think you are more wise than some of the best and brightest investors out there.

You are right about one thing, trading on margin in a single asset is a risky investment. In fact, it might be the riskiest strategy you can use. But it sounds like you don't understand portolio theory, which maximizes return based on risk. As a quick synopsis, you could earn the same return with less risk investing in a portfolio of stocks than you can investing in a single stock, based on investing at the efficient frontier. I'm sorry to say, its only a matter of time before you lose your investment (with potential for much larger losses than even your investment due to trading on margin). You may want to study up on portfolio theory before this happens. In addition, I can't imagine a single sane person in this world who would allow you to invest their money when you only invest it in a single stock.

[Gaulkin]

I don't even know where to begin, because it sounds like you think you are more wise than some of the best and brightest investors out there.

You are right about one thing, trading on margin in a single asset is a risky investment. In fact, it might be the riskiest strategy you can use. But it sounds like you don't understand portolio theory, which maximizes return based on risk. As a quick synopsis, you could earn the same return with less risk investing in a portfolio of stocks than you can investing in a single stock, based on investing at the efficient frontier. I'm sorry to say, its only a matter of time before you lose your investment (with potential for much larger losses than even your investment due to trading on margin). You may want to study up on portfolio theory before this happens. In addition, I can't imagine a single sane person in this world who would allow you to invest their money when you only invest it in a single stock.

lol, i trade that way because its how i like to trade. Im not implying that i want to setup peoples portfolio's like that. I know about diversification but i like to zoom in on one sector that is booming. I don't go all in on one value stock, i go after fast moving growth stocks like MOS and PBR. I also use trailing stop loss at 10% to minimize my risk if anything was to happen.