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Is there anything wrong in doing yearly withdrawal in my clients accounts?
Aug 19, 2010 at 13:17
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16 Replies
forex_trader_7
会员从Aug 01, 2009开始
895帖子
Aug 19, 2010 at 14:59
(已编辑 Aug 19, 2010 at 15:16)
If you're the MM?
Super bad.
You should be getting every cent you can get your hand on to get it into your trading account so it can start compounding. By doing that you just waved good-bye to a years compounding.
A 100 buck fee a year later at 0.005% a day is about $250 x maybe 100 clients. Times 10 or 20 successful years. This is before taking the clients compound into account.
You're throwing away millions basically if you're successful.
I wouldn't burn those kind of bucks, that's for sure.
Of course the client scores mega, they're getting your compounding!!
"The most powerful force in the universe, compound interest - Albert Einstein" or so I'm lead to believe...
Super bad.
You should be getting every cent you can get your hand on to get it into your trading account so it can start compounding. By doing that you just waved good-bye to a years compounding.
A 100 buck fee a year later at 0.005% a day is about $250 x maybe 100 clients. Times 10 or 20 successful years. This is before taking the clients compound into account.
You're throwing away millions basically if you're successful.
I wouldn't burn those kind of bucks, that's for sure.
Of course the client scores mega, they're getting your compounding!!
"The most powerful force in the universe, compound interest - Albert Einstein" or so I'm lead to believe...
forex_trader_7
会员从Aug 01, 2009开始
895帖子
Aug 19, 2010 at 18:09
(已编辑 Aug 19, 2010 at 18:13)
Are you client or manager? I presume manager. So give me rough figures to work with. I suppose you wouldn't want to do that. So I'll just do a simple sheet, you can plug your own stuff in.
forex_trader_7
会员从Aug 01, 2009开始
895帖子
Aug 19, 2010 at 18:33
(已编辑 Aug 19, 2010 at 18:40)
Right simple compounding.
There we assumed you got $1k after month one as a fee and you're doing 0.5% a day. So after a year, about 200 trading days the original 1k fee's now $2711.52.
That is in the clients account. Not yours. Your fee for month 1 was and still is 1k. But the client is now sitting on your compounding, the other $1700 which is more than your original fee.
He has your fee plus growth. Of course you get a fee for growing your fee, $1 711.52 x portion of fee.
So you lose and lose.
Now that was for month one. Times that by client times by time....1000 clients 10 years later. You take the cents you can get on the day and add it to your trading account so it can compound for you. The way you're doing it you get a fee of the compounding of your fee...which you don't have, because the clients got it...
There we assumed you got $1k after month one as a fee and you're doing 0.5% a day. So after a year, about 200 trading days the original 1k fee's now $2711.52.
That is in the clients account. Not yours. Your fee for month 1 was and still is 1k. But the client is now sitting on your compounding, the other $1700 which is more than your original fee.
He has your fee plus growth. Of course you get a fee for growing your fee, $1 711.52 x portion of fee.
So you lose and lose.
Now that was for month one. Times that by client times by time....1000 clients 10 years later. You take the cents you can get on the day and add it to your trading account so it can compound for you. The way you're doing it you get a fee of the compounding of your fee...which you don't have, because the clients got it...
forex_trader_8139
会员从Mar 04, 2010开始
411帖子
Aug 19, 2010 at 18:38
Pipsology posted:
hello people, i just want to know, we both signed a contract of only withdrawing yearly, is there any bad in it?
Hi,
As manager, i dont think you have any disadvantages. You manage as long as you can for your clients.
As client, then depend on the terms stated in the contract. Normally i will not signed it if it only allow me to withdraw after a year. It is simply too long for me. I need higher liquidity for my money. And what happen if the manager does not meet your expectation of performance? But you still need to wait until year end, this is too bad.
regards,
SIM
forex_trader_7
会员从Aug 01, 2009开始
895帖子
Aug 19, 2010 at 18:43
Sim
Are you kidding me? It's the worst deal a manager could do!! Perfect for the client.
Are you kidding me? It's the worst deal a manager could do!! Perfect for the client.
forex_trader_7
会员从Aug 01, 2009开始
895帖子
Aug 19, 2010 at 18:49
(已编辑 Aug 19, 2010 at 18:56)
High water mark, no profit no fee, Monthly or Bi weekly. Broker collects. That's a fair deal.
If the client declares a dispute and closes his account, contract or not, what chance does the MM have of collecting? Paypal won't even handle an money sent last week dispute, never mind a year old fee.
And if you use banks, and the fee is only a grand for the last 12 months for that client?
No ladies, it makes every sense to settle often, via a third party, from a financial point of view and from a fair point if view.
If the client declares a dispute and closes his account, contract or not, what chance does the MM have of collecting? Paypal won't even handle an money sent last week dispute, never mind a year old fee.
And if you use banks, and the fee is only a grand for the last 12 months for that client?
No ladies, it makes every sense to settle often, via a third party, from a financial point of view and from a fair point if view.
forex_trader_8139
会员从Mar 04, 2010开始
411帖子
Aug 19, 2010 at 18:51
Elkart,
Don't worry, it is just my opinion.
It depends on what he have signed.
Regards,
SIM
Don't worry, it is just my opinion.
It depends on what he have signed.
Regards,
SIM
forex_trader_8139
会员从Mar 04, 2010开始
411帖子
Aug 19, 2010 at 19:02
(已编辑 Aug 19, 2010 at 19:21)
Are you the manager or investor? You should be the manager.
forex_trader_8139
会员从Mar 04, 2010开始
411帖子
Aug 19, 2010 at 19:11
(已编辑 Aug 19, 2010 at 19:13)
So from your own point of view,
What is the disadvantage of 1 year money management contract?
Since you said profit sharing 60/40, so from the profit you take 60% your client take 40%.
What about losses?
Regards,
SIM
What is the disadvantage of 1 year money management contract?
Since you said profit sharing 60/40, so from the profit you take 60% your client take 40%.
What about losses?
Regards,
SIM
Aug 19, 2010 at 19:19
i hv a hv a good morney managment, i caculate my profits weekly, meaning some times i win 5 in a 5 trading days, or i win 4trading days outta 5, so what am asking is is the contract ok to withdrawal yearly?
Patience Is The Best Stractegy In Forex
forex_trader_7
会员从Aug 01, 2009开始
895帖子
Aug 19, 2010 at 20:06
No it is not.
forex_trader_7
会员从Aug 01, 2009开始
895帖子
Aug 19, 2010 at 21:06
(已编辑 Aug 19, 2010 at 21:07)
Traders are like fighter pilots or divers. You're only as good as your last landing, your last dive or your last trade.
That contract is not worth the paper it's written on.
I seen guys earn millions for companies and get fired at the first mistake. Not only are you losing out on sharing your compound growth with the client (which is something you haven't bothered to work out), you run a really good risk on getting shafted first morning he misses his coffee...
This is not new territory, I think the guidelines are well established in industry?
That contract is not worth the paper it's written on.
I seen guys earn millions for companies and get fired at the first mistake. Not only are you losing out on sharing your compound growth with the client (which is something you haven't bothered to work out), you run a really good risk on getting shafted first morning he misses his coffee...
This is not new territory, I think the guidelines are well established in industry?
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