Networking Call (Part 2)

Today I continue presentation of my networking call with GP: a self-proclaimed delta-neutral trader with a business website advertising consulting services.

After he figured out who I was, we offered introductory greetings and I quickly ventured into what would be the meat of the conversation: “so I browsed your website and I see that you’re a full-time trader and trader consultant…”

“Actually I’m a software engineer. Trading is more like my side hustle.”

Say what?

His story begins with professional trading experience working for a firm. He then left to start a fund of his own. He took out a bank loan, which would constitute 50% of his trading capital, and used personal savings as the other 50%. He said the pressure of having to profit on a consistent basis was too great and the fund eventually failed. He didn’t say specifically how much he was trading, how much he lost, over what period of time, or any other details—just that things didn’t work out. He then got an “offer I couldn’t refuse” and went back to work as a software engineer.

I said that I have been a full-time option trader for the last 12 years, which he called the “perfect gig.” I said it was much better than being put through the pharmacy wringer every day working 8-12-hour shifts on my feet continuously for 50-60 hours/week. I faced relentless phone calls, being constantly pulled in multiple directions at once, no breaks for bathroom or food, and limited time to exercise.

I told him while I love what I’m doing now, I still seek something more.

He mentioned starting a fund, but I am not currently thinking about going in that direction because I know little about sales or how to proceed with marketing the fund.

“Just start with friends and family,” he said. “You can raise money from them and then solicit outside investors as you grow. It’s not really worthwhile to get $5M-$10M. You really want at least $50M to start, and then you can hire a sales person and someone to help with accounting.”

He didn’t realize raising money amounts to sales. “You still have to create a pitch book, present it, and sell it,” I said.

“Oh right, righttttt…” he said, and he uh-huh’d me the rest of the way. Perhaps this is something he went through before settling on the bank loan. I don’t know. I had lots of unanswered questions and was finding little new information from him to be of any use. Some of what he did say didn’t even make complete sense for someone with his alleged experience.

I will conclude next time.