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A strategic alliance is a partnership between an investor with capital but no desire to trade and a trader with ability but no capital. This is a classic marriage of money and brains. |
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Talented traders are more difficult to find than people with surplus capital. People with capital can search for a decent trader and enter into an agreement in which the trader and the investor can share the trading profits. The investor provides margin capital for the trader, who is willing to work all day for a hefty percentage of the profits a gifted trader can generate. |
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Perhaps the most readily available form of strategic alliance can be found at the firm where you want to train and trade. For those traders possessing a smaller amount of capital than is required for trading on one's own, but available as risk capital, a very palatable solution may be possible. |
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A basic concern of a day trader is the amount of leverage available to conduct intraday trading activities. Naturally, the greater the leverage, the more open positions the trader can carry at any given time. Leverage is a double-edged sword because it cuts both ways. It has been my experience that there are many potentially excellent traders who have limited access to risk capital. To facilitate their capital needs and nurture this trading talent, a new strategic alliance opportunity is being offered by some firms, including mine, to extend the increased leverage offered to broker-dealers to qualified traders, allowing those traders to trade with the firm's capital. Naturally, there are certain requirements, restrictions, and risks that go along with this opportunity, but in many instances such an alliance may furnish opportunity to candidates with limited capital resources. |
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A competent day trader really does not care what type of instrument he or she trades. To the day trader, all the various securities are merely an assortment of letters written on a trade ticket or a computer screen. It makes almost no difference what you trade as long as you trade it successfully. For example, |
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