Fundraising Methods for Traders

The usual methods of fundraising for a trader are as follows:

1- Use your own funds. You may have save up from working, from other investments or basically from mom and dad (inheritance).
2- Bank loans or any other loans.
3- Friends and family.
4- A prop firm with all sorts of entry requirements and rules.
5- Got hired as a trader with a salary and clauses on profit sharing and bounces.
6- Advertisements attracting investors (very risky).

Any more ways? That's all I can think of right now.

There is one more way and that's what I am going to discuss right now but it is conditional.

The first condition is that you are absolutely a winner trader. No if's and but's. There should be no doubt whatsoever that you will generate a positive return. If your track record or ability to make money is sketchy or inconsistent or still subject to huge variances, then this method is not for you at all.

That is the lone most important factor in making this method work. Everything else might be able to be worked out with a bit of ingenuity but without you as a trader generating a guaranteed return percentage, the idea is DOA.

So, now if you are absolutely certain that you are a winner for sure, you have to decide what your percentage gain is. It should be decent enough to at least cover your expenses of implementing it. If you just break even after all the work, then it's not really worth bothering with.

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Now the method:

You need to sell something. A physical object that can not be replicated and faked. You sell it and you buy it back. You sell it at $X and buy it for $X+Y.
Yes, you pay an extra amount to buy back the original item and that is how you raise money. Lost you yet?

Here is an example:

You paint a little painting. Doesn't have to be big at all. The size of a postcard will do. You frame it and that is your product. It could be a happy face on a small canvas. It could be an X or anything abstract. It doesn't matter. It is your art and you are selling it for let's say $100.
No one can question your motives for making a painting and selling it. In fact you are so confident that this purchase was such a good idea for the buyer that you are willing to buy it back for twice they paid in one year from now. You guarantee that you will buy it back in a year for $200.

If they think you are lying, they don't have to purchase the painting. Right?

Is there anything illegal about this so far?

I know it isn't because i did purchase a very beautiful print (not the original) from an artist who had a shop in a touristy part of the town. He had set the repurchase price at par. In other words, if you are not happy with your purchase, bring it back in a year and I will refund you. I never returned it and passed it to my son. The print is about 25 years old now.

The only issue you have is that you don't want it to be faked. All I can think is to embed a microchip in the frame to make sure it stays authentic. In that case you are actually selling the microchip with certain data that you have put in and can only be accessed by you. If the microchip is gone or the casing is tampered with, then the item is spoiled by the buyer and basically worthless.

We assume the picture hasn't been tampered with and has stayed in it's original shape for a year.

Now the customer comes back after a year to see you purchase the painting back as you promised. By all means, you pay the customer $200 and take the painting back and decommission it or reprogram the microchip and have it for sale again.

So, you understand what happened now?

You raised $100, you made god knows how much....maybe 500% off that $100 and now you have $600. You keep $400 and give the customer $200.
Soon, the word of mouth will travel and you will have lineups around the block for your paintings. People will be willing to give you their money and sign any sorts of contracts you put in front of them as long as you are able to fulfill the terms of the contract.

Like I said, you have to be able to make money.

If you can make say 20%/year, you are not going to offer to pay 200% for the painting when they bring it back. Maybe you will have to offer 5 or 10%. The lower the offer, the lower the enticement value for anyone to want to buy the painting and vice versa. When I bought that artist's print, I absolutely loved it and was horrified at the thought of returning it for a refund. Even today i wouldn't. That is because it was beautiful and worth the money. Your painting however, with the happy face or whatever, I doubt will carry the same charm...no offence. That's why you will have to offer something substantial to entice a transaction.


Well, what do you guys think?

Can you be arrested or at least stopped before your first attempt at giving a refund for your painting? That means are there any laws that prevent a person from making a promise to repurchase an item at a higher price?
If you sold only one painting and you didn't make money with that $100, you can easily save yourself from trouble and dish out $200 to buy the painting back. No harm, no foul. However, if you sold so many that you can not cover all the buy back coming at you...well, you are in trouble.

This is something that has to be thought out in depth. The first year, you may have to limit your sells. 10 painting, $1000 raised and invested, but you have to have $2000 sitting in the bank in case you fail.
Of course you can't go on like that and have your safety net sitting in the bank in case you fail. As I have said a few times already, this entire thing hinges on your ability to fulfil. What I am wondering is given that ability to make money, is there anything wrong with this plan or how else can it be improved?

I seem to misunderstand but, if your buying those paintings back at a higher price than you sold it for, then its the customers that are actually making money?

In order to sell paintings you still need some advertising/marketing.u

Trade safely and attract investors' capital. I attracted investments 25x of my account capital and now earning 15% of investor profits.

Idea is to sell a painting for 100$, then 1-year trade that capital and grow your account to let's say 300$. From that money pay back for painting 200$ and you still have 100$.

Ah of course, makes sense now. The scheme sounded so elaborate I forgot the money was for trading

Lol.
I could have described the whole thing in one paragraph but I tend to be a story teller sometimes.
Yes, just like the title says, it is a form of fundraising.

the $100 cost of the item and the promise of cost plus $100 is just an example.
It could be anything that one finds practical or convenient based on self abilities and needs.

The advertising is negligible. It could even be done online and we know that one can promote all sorts of things without a penny spent on advertising nowadays.

Its certainly an interesting idea and I appreciate the author for sharing. The issue with laws, I'm not aware of which ones they might violate but it would differ with different jurisdictions and countries. I think the main problem would be the psychological perspective of the customers; assuming you had no business place to sell the items from and you were doing this online, they might just think you'd disappear. Also, they might find 1 year a little too long to refund them and might be put off by the wait but not sure

7 - create your own cryptocurrency

Emit 200000 coins and sell 100000 coins for 1$ each. So you have a capitalization of 100000 usd for your new crypto. Trade that 100000$ and after 1 year have 300000$ capital (my best year was 80%... maybe 50% yearly is more realistic but ok this is just concept of the idea).

Now you buy back your crypto coins and increase their price because you create demand. And guess what... everybody now sees that your crypto price is going up... from 1$ to... 1.30$... then 1.50$... and all see a trend. They jump in and buy your crypto - so the price starting to skyrocket like dogycoin.

And you still have initial 100000 coins which you keep for yourself... So the price of coins increases let's say to 3$ and there is hype - people want to buy your coins. So you sell for example 20000 coins... carefully - not to damage price.

You sell your coins and get additional capital for trading - and again get some % from trading and buy your coins. So you push the price of coins higher and higher.

All you need to do:
1. Create cryptocurrency
2. Find people who buy your crypto coins
3. Trade and earn good % profits
4. Buy your coins back - create trend and demand
5. Sell some additional coins
6. Continue step 3.

Just idea...

Imagine your painting is a roulette computer with a 100% roi pa. The customer pays you say 10% of their profits for the usage. No upfront payment instead your customer pay as they earn. This way you don't have to do the work to reap the profit. The idea sounds nice but when you examine in detail you find a host of problems. It's not that simple.

are you trapping people into debating prop firm as scheming firm

That is true. An established art store that has been there for a while would be more credible.
I guess the length of time could be divided into half or quarters and the payout cut accordingly but then it becomes too nickel and dime and too hard to keep track.
Personally, they can take it or leave it.

I haven't googled 'creating your own cryptocurrency' but if it is so easy to just do that, why isn't everyone doing it?
But if it is in fact so simple, I'm all over that idea.

I'm not sure what you mean but trapping people is not a good idea.
There is plenty of debate going on in other threads about prop firms already.
Also. If I wanted to talk about prop firms, I'd talk about prop firms. No need to come up with an elaborate side plan to talk about them.

To point directly at prop firm you will have different response.

Well, I had a difficult time imagining my painting being a roulette computer with a 100% roi pa.
Now you are making it into a complicated proposal.
To start a gambling site, attract customers and all issues related to that industry, so I can raise money to trade FX?

But I appreciate the input. Let me know if you want to be my partner in starting a gambling site.

I found this comment very interesting. It's not difficult to create a cryptocurrency because most of the work needed to be done is based on that of Bitcoin. But creating genuine exposure for your cryptocurrecny, getting people to consistently buy it, and creating a purpose for your crypto is not something everyone knows how to do. There are thousands of cryptocurrencies on the market, but most fail to gain the necessary exposure. I'm thinking about creating one myself in the near future. The post you quoted seems like an easier way to generate exposure, but I assure you it is not that simple. In theory it would be that simple, but to create a crypto like Litecoin or Bitcoin or Ethereum and get it to take off and corner the market is rare. Just my thoughts :-)

Someone like musk could raise the profile of anything with just one tweet. Why doesn't him or many others with influence do it?
There are certainly many famous people with money problems. Some start Vodka brands or clothing lines etc.
Is selling sweatshirts easier than starting cryptocurrencies?
How much does it cost to start a cryptocurrency? So what If it doesn't pan out as long as the cost is small.

Yeah it's interesting that Elon Musk can move the market like that LOL. Why don't other people do that when they can? I've been wondering that myself for the past few months. The only answer I came up with that satisfies me is that bitcoin is positioning itself to disrupt the entire financial landscape, and traditional investors are nervous, or scared, or unwilling to change and adapt to progressive ideas. Social media is a perfect example. The older generations were unwilling to learn, adapt or embrace social media until recently, but younger people are pros at it. I think a lot of traditional investors, like the billionaires you hear about on tv, don't need bitcoin at all because they are already so rich and successful. From their perspective it might just be a sideshow or something they find amusing. If you were a billionaire what can you do with bitcoin that you can't already do right now. If you look at it from the perspective of someone who is not rich, it seems crazy that you would not invest in bitcoin right now, whether you are a millionaire or billionaire. But like I said you have to look at if from the perspective of someone who is already rich and successful. None of those people NEED bitcoin. But they might want it, and this past month is proving mainstream investors are finally getting on board. As far as what you said about creating a crypto, a software developer can create one in a matter of days. You can get one up and going on a few thousand dollars easily, but then you have to create a purpose and a value for your crypto, and you have to deal with legal issues, marketing, all kinds of stuff. If you're trying to make it a career, you need much more money, and you'd look into raising money for your crypto, almost like you're running for public office. You could be looking at anywhere from $5000 to $100000 or more. I agree that it doesn't matter if the profit is small, as long as you see SOME profit :-). Selling sweatshirts seems easy to me, if you can come up with a good idea :-). I'd say that would be much cheaper than cryptocurrencies.

ok, well, I am definitely someone who doesn't care much for Cryptos but I'm not going into that now.
You made it sound so easy tho...start a cryptocurrency...
Ok then, Cryptocurrencies are out in regards to fundraising to trade fx since I ain't a software developer etc.