I need help with starting a business

rocky9281

rocky9281

Well-Known Member
#1
#1
I think I am pretty good at selecting the right stock, I want to start a business but I dont know what kind of business is it going to be. I dont know what kind of business type or category will it come under. Here are some of the features that I want to be present:

1. I will trade with other peoples money, in my own trading account.

2. I will trade only in Stocks. A certain percentage of the profit will be mine.

3. When and which company I am going to invest will totally be my decision and I am not obliged to inform what I am going to do in advance.

4. Losses will be within its limit.(No more than 0.1 % in a particular trade;commissions extra.)

5. I constantly maintain a track record of 1 loss in every 3 trades in my account.

Those of you who dont think that I am insane, please reply to the questions below:

1. Is it possible to have all the above features simultaneously?

2. What kind (i.e category) of company is it going to be? I mean what is the appropriate term for that business type(e.g investment company, fund management etc)

3. What are the steps to start such a company? Please explain the steps in details.

4. Any additional information (except that I am mad) is highly welcomed.

Thanks
 
nac

nac

Well-Known Member
#2
#2
^

Rocky,

I don't how to name it... I am assuming this business is a small one... If its big, better consult with chartered accountant or a qualified person...

I am sure people around you (your friends, relatives .... ) know you are trading... Show them your ledger, and give them the pitch you given here... If they convinced, get fund from them and start trading... Start with known source, once your business picks up people will fund and refer their friends too.

I don't know the formalities for formation of company...

There was a member named diosys... He is not active now a days... He would have cleared your query. :(

All the best :thumb:
 
V

vijayvaliya

Active Member
#3
#3
rocky9281 said:
I think I am pretty good at selecting the right stock, I want to start a business but I dont know what kind of business is it going to be. I dont know what kind of business type or category will it come under. Here are some of the features that I want to be present:

1. I will trade with other peoples money, in my own trading account.

2. I will trade only in Stocks. A certain percentage of the profit will be mine.

3. When and which company I am going to invest will totally be my decision and I am not obliged to inform what I am going to do in advance.

4. Losses will be within its limit.(No more than 0.1 % in a particular trade;commissions extra.)

5. I constantly maintain a track record of 1 loss in every 3 trades in my account.

Those of you who dont think that I am insane, please reply to the questions below:

1. Is it possible to have all the above features simultaneously?

2. What kind (i.e category) of company is it going to be? I mean what is the appropriate term for that business type(e.g investment company, fund management etc)

3. What are the steps to start such a company? Please explain the steps in details.

4. Any additional information (except that I am mad) is highly welcomed.

Thanks
Click to expand...

Let me offer my thoughts on this...


First place, i dont see that you are mad (may be the last thing i will think of your idea)


The idea you are having is of creating a trading company.

Only your method of raising the capital is having some issues. you cant raise capital just by the way of debt without getting clearances from Finacial authorities in the country (RBI).

You can very well do it with money obtained from your relatives/friends

starting you will need to register it as trading company (if you so desire the tag of co. after your firms name) . In this case you have register it with ROC (registrar of companies) with 2 more people in tow.

else you can register it as sole proprietorship firm or partnership firm. For that you need to take a declaration from magistrate only.
 
R

rxvenk2

New Member
#4
#4
I agree with Nac.
I have started the business of trading 3 years back. I started with relatives and extended it to close circle of friends. I had to pay interest to my clients from my packet for the first year and the next 2 years I was able to make profit and had margin for my commission. If you are investing/trading style is long only ( buy and sell) then I would say you should develop the skill set of shorting (sell and buy). Also make sure have separate portfolio for investing and trading as either one will be more profitable based on the market condition.

So far I am able to give 70% returns in 3 years. Also convey your clients that investing in stocks in risky and they might have to bear the loss if it occurs ( but this is the toughest thing to say).
 
TFL

TFL

Well-Known Member
#5
#5
Only do this if your are certain that you can survive long term in trading with your strategy. Even if your friends know the risk of trading, you will get the curses if they realise losses. That may even mark you are Investment Scam like we are seeing on media and may possibly get a rejection from the society. Think well my friend So be in safe side if possible and trade with your own capital.

I think you need special permission for that...I don't really know it...discuss your idea with a good lawyer and C.A. before sourcing the funds to be safe from future legalities.

TFL.



rocky9281 said:
I think I am pretty good at selecting the right stock, I want to start a business but I dont know what kind of business is it going to be. I dont know what kind of business type or category will it come under. Here are some of the features that I want to be present:

1. I will trade with other peoples money, in my own trading account.

2. I will trade only in Stocks. A certain percentage of the profit will be mine.

3. When and which company I am going to invest will totally be my decision and I am not obliged to inform what I am going to do in advance.

4. Losses will be within its limit.(No more than 0.1 % in a particular trade;commissions extra.)

5. I constantly maintain a track record of 1 loss in every 3 trades in my account.

Those of you who dont think that I am insane, please reply to the questions below:

1. Is it possible to have all the above features simultaneously?

2. What kind (i.e category) of company is it going to be? I mean what is the appropriate term for that business type(e.g investment company, fund management etc)

3. What are the steps to start such a company? Please explain the steps in details.

4. Any additional information (except that I am mad) is highly welcomed.

Thanks
Click to expand...
 
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