A stock-trading company?

shorttermer · #1 26th November 2005, 11:03 PM

Hello members of the forum, respected Traderji, et al,

I have amassed a small fortune (around 70 lakhs - started with negative 9 lakhs) from trading and i basically live of it - make my capital appreciate around 50-70% every year, and getting more experienced with time. I'm 21, i dont have a job - trading is my job, and i know this is my life's calling. im now engaged, got a flat, got things really well set-up - well life's good. i now hire an accountant, got things setup in a small office in the building i live in - always losing the battle for perfect accountancy - but handle it good.

I really feel now I'm ready to stop doing my trading on my personal name, and establish a company. My family is a business family, and so the whole bureacratic bull will be easy to get through... setting up will be an easy task. an office sublet from my family is no problem. i feel having the dual structure of my personal finances and a co. to deal with will make life so much simpler with money. plus buying things like a car, holidays, etc can be done through the co., with me drawing a salary from the co., and issuing dividends from time to time. I feel it would be a more tax-friendly, efficient, and growth-oriented way of working. also it will be a great opportunity for me to branch out into other finance-related areas, like handling ppl's money (too many requests!), inter-corporate loans, and venture-capitalisms. it will also enable me to pursue my dream of having warren buffet like hold on cos. in the long run

anyone, who knows anything about such a concept of a trading company, or any related items, or just want to give their view-points, please post it to me. Hungry for any moral support and backing, and criticisms, flaws, or points of concern. Any views on taxation structure will also be welcome!

Please contribute to the thread, will make a world of difference for me,

Thanking you,

sincerely,

shorttermer

hmp · #2 27th November 2005, 11:49 PM

Hi Shorttermer.
Can U Pl. Explain Us Ur Way And Strategy For Day Trading? It Ll Be Usefull For A Small New Traders Like Me.
Regards.
Hmp.

shorttermer · #3 30th November 2005, 10:28 PM

hi hmp,

will get back to you, give me some time.

shorttermer

shorttermer · #4 30th November 2005, 10:30 PM

Hi everyone,

quite disappointed with no response about my first post. please really looking for advice and moral support. guys help me out!

btw, traderji, have i put this thread in the wrong forum?

waiting for some feedback... will be most appreciated,

thanks guys,

shorttermer

shorttermer · #5 3rd December 2005, 02:31 AM

Thank you everyone for the response of this thread. I appreciate it.

traderji, i would like to delete this thread. is it possible?

thanking you sincerely,

shorttermer

Neal · #6 3rd December 2005, 07:05 AM

What you are tyring to offer is a portfolio management service. If you have the expertise and knowledge you can by all means go ahead. I think it has a great future. You can read more about portfolio management at SEBI's website http://www.sebi.gov.in/faq/faqpms.html They have some very strict guidelines.

shorttermer · #7 3rd December 2005, 10:19 AM

Hi Neal,

First of all I would like to thank you for the reply

.

The situation I am in right now is that i trade every year a turnover (buy + sell) values of anywhere between 8-14 crores worth of transction in personal name and 50-100 lakh in profit. now the issue i am thinking of is - should i keep this in my personal level and work as a professional (doctor, etc... ie on his own name) or should i float a co. on which these transactions go?

To answer your question Neal, yes wealth management services, etc are on my mind, though not that high up as yet. if i do, i will start out in the andhra cities that i know and service for medium to HNI and companies, etc. For me, i know the opportunities are endless when i get to the point of having a finanncial company that will have time to define itself under my control and hold over the next 5-10 yrs. right now i am deciding (rather decided) on taking that crucial step forward.

for other readers of this post, my other objectives of this move are stated in the first post in the thread.

Neal, I want to thank you from the bottom of my heart for just replying and giving me some fodder... i was losing faith in the forum, and was going to leave. thank you.

btw - all readers of this post, when i state my figures as i have done in this thread i do not mean it to show off, exxagerate, or tout myself in anyway. i know there is the protocol on this sight, where actual figures are not really mentioned, but i felt i needed it to send the right info out to ppl wanting to understnd (if they wished to) my decisions.

I have absolutely no clue about the financial data of any other members, and i clearly do not have a wish to know other members money data.

thanking you (and especially you neal),

shorttermer

kodange · #8 3rd December 2005, 10:46 AM

Good going shorttermer!!
I think basically you would be looking at portfolio management services or an investment company or you could form a company and maybe take up membership of NSE as a broker . I think the best person to advice you on setting up a company / brokerage / trading company especially with reagrd to tax benifits, pay , dividend etc etc would be a Chartered Accountant. So u could contact a CA first and clarify all your doubts. Infact I think there are some CA`s in this forum itself ....... so they could help you out too!! Any voulteers from the members??
Reagrds and good luck with your venture

btw: Buffet started a investment company with some money of his own but mainly money from friends and interested people.

karthikmarar · #9 3rd December 2005, 11:21 AM

shorttermer

50-100 Lakhs on 8-14 cr...mmm...My firiend that is not an impressive performance... I feel that you should first seriously think of improving it before anything else..This foorum will definitely help you on this.

regards

Karthik

shorttermer · #10 3rd December 2005, 04:25 PM

hi karthik,

my CAPITAL is 60-70 lakh and i am making the 50-100 lakh on that yearly. margins and %s are suffering in trades stopped short due to reverse in TA and few bad trades done for over-zealous family members, but i think 100% cap. appreciation is quite decent. i used the turnover as an indicator for the qty of volume traded, not how much money i sit on. i am not CA type person, so i may not be explaining things right with right terms used. if you still feel i need the desperate help of forum i will humbly accept. but pls clarify the figures out you want to know, and i will tell youu accordingly to what you ask... i think u are mis-reading what i write and mean.

please no offense buddy, though. and the criticism is welcome and thank you for it.

waiting for your response,

shorttermer

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