facebookA friend asked me how much percentage to share profits with him/her on the trade if i'm right in the stock direction base on technical analysis. If I'm wrong, he/she will take the loss. - Seedly

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Anonymous

Edited 24d ago

βˆ™

Stocks

A friend asked me how much percentage to share profits with him/her on the trade if i'm right in the stock direction base on technical analysis. If I'm wrong, he/she will take the loss.

I was quoted 10% profit sharing if the stock direction is correct on the trade. Should I ask for more? If yes, how much % should I ask to share profits?

Discussion (20)

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This is harsh on the friendship.

I think a meal will do. How will u compensate for the loss. No obligations for taking your advice need to do own diligence

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You're suggesting offering TA advice and having your friend share the profits from their trades with you, right? How do you keep track of their earnings in this situation? Did they give you a sum to manage on their behalf, for example, to trade or invest for them? If that's the case, it could get quite complicated from an accounting standpoint, and the responsibility will fall on you to ensure everything is clearly tracked and transparent. On the other hand, if no funds are involved and your friend is simply sharing profits, it places a lot of trust on their integrity to be transparent and honest about what they’ve earned. However, this approach will be neater for you.

Would presume that you're also trading/investing based on your own TA. If so, perhaps consider just taking a fixed token amount from every recommendation made. If you're so "zhun", there is no reason to be hard up on your friend's earnings.

How much is the notional? Can apply 2 and 20 rule used by most hedgies. Solid sia this friend...

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