Saturday, March 3, 2007

The Rules

(I don't think it will make much sense to you if you arrive to this post directly without reading the previous post here.)

1) The $40,000.00 will be opened at an online brokerage account of my choice, but, under the name of my friend. He will give me full control of his account.

2) I am not allowed to withdraw the funds, as cash, for spending. He wants to make sure that I get the opportunity to live my dream.

3) Since I have no proven record on how I can generate a steady income by day-trading, I must continue with my day-job in the meantime.

4) I am to keep his lottery winning a secret, and never to identify him as the source of this fund. (I later received his approval to tell my wife the details to avoid ruining my marriage!)

5) I am to provide him with a monthly high-level profit/loss update.

6) I have the option of cashing out the profit by the end of the year, or I can choose to leave the profit in the account as additional principal.

7) I will not be responsible for losses that I incur in the account. But should I choose to discontinue this ‘project’, the remaining balance must be returned to him. (I was later able to talk him into picking up the tab on any Capital Gain tax that I might incur ‘on his behalf.’)

8) Last but not least, if my day-trading practice has proven to be successful, I must pass-on my methodology to him. After all, he is also somewhat interested in day-trading.

These are the rules. Here are my thoughts!

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