value your opinion, finacial guru's needed , page-3

It can be troublesome going trading with mates cash.

I do it for two mates.
I started just over two years ago and burnt 80% of their cash during the crash. lol.

Many people say they are willing to risk the money until you have burnt it, and then it is a different story!

But not one complaint from them though during the whole crisis. Surprising considering they know I don't even have a trading system. I just buy stuff I like.

Two years in, and I have recouped the loss and doubled their cash pre tax.

I signed an agreement with them... not going to divulge the whole thing but basically: no more than 25% of portfolio in any one stock and a scaling commission measured quarterly:

x% on first 2.5%
x% on next 2.5%
x% of anything above that.

Also: I have a larger share of the portfolio to ensure I am taking a greater risk than they are.

Worst aspect of it is if they query your decisions: holdings, size, sector, market direction, or just pressure you to make money faster.

Nothing worse when the market has been going up and you have been going down and you get a call asking: "how much have we made?.

Mine don't pester me, and were actually very supportive during the crash.

But I still them to get knotted if they ask about the stocks in the portfolio and current profit.

I do give a detailed quarterly report though, including all trades.

H.T.H.