Trading with other peoples' money

Hi guys,
A few people who know that I am into trading one offered me their money so that I could trade with it and give "handsome" money to them.

I really don't want to get into this. I am happy trading with own account without because I am not answerable to anybody in case of loss. It my own money and if I lose it because of my mistake, I will accept it.

But I am sure there are some people here who do that. I am not speaking about portfolio managers. I am speaking of the individual retail traders who do this. Will such people share their experience please?

As far as I am concerned, I think it will put me under stress that "I am managing somebody's money and I should not loose it" and this will directly affect my analysis.

Also, in case this is done, how is tax sharing done. If there are any profits in my account, I will have to pay taxes over it naa?

This happens when the 1) lender of money has no time or the skill required for trading. 2) He/She has faith in your capabilities as a trader

If profits are share post tax, i dont see any problem in this kind of arrangemetns.

Bunny, few observation on
As a serious trader, are we really going to make such dumb mistakes and blow our account. Why do we give more importance to other people's money and don't give same respect to our own money ? Why do we think that trading others money bring more responsiblity but trading our own account can be done casually or irresponsible way ?

These are few questions which are more fundamental and shows our belief about the money. Whether we decide to entertain othr people money (OPM) or not is certainly individuals choice. But it does have its own advantage..

1) If I am serious about trading profession, then I am just extending my account and offering my service to others who need it.
2) Whether I take money/profit share for this or not depends on many factors.
3) It doesn't bring much overhead to me but just makes my own trading run lot more professionally. As proper business.
4) As a trader, we are running trading business with 1 client who is Me. Why to shut the door if I get more client.
5) Or is it that I know I have weak areas/gaps in my trading business and if I take OPM, then those gaps are going to get uncovered and then I have to put extra effort to fill them.
6) Why shd it put more stress to you ? If you are trading 1Lac accounts, then don't u want to scale up to 10Lac, 1 cr account in future. With OPM, u get that chance now.
When u are trading 10 Lac account, shd it create more stress then while trading 1lac acct. If risk mgmt, is done properly then I don't see any difference in trading bigger account size (ofcourse till the level when ur position size becomes so big that u start moving the market)..

If u are doubtful about big size from others, then issue is more psychological then anything else. Maybe your trading psych needs to scaleup to handle bigger numbers.

In my view, if expectations are managed properly, and we have system to scale up our trading account to bigger level.. then trading OPM just gives us the choice to increase our earning potential.

Just my view. Hope it gives different views on the subject.

Happy Trading

Thanks AW10 for your detailed views. Appreciate a lot of it.