Thanks for the comments, lets try to keep this discussion friendly. Let me elaborate on the context of my question so we can stop making these ridiculous ponzi accusations.
You want to tell someone how to react, I recommend an attorney that you pay to treat you how you like.
Me, I won't let you sugar coat the fact you are setting up a pyramid scheme.
I have been day trading since 2003. I have generated a .5% daily return averaged over the last 2 years. If you chose not to believe, that is fine. Now a number of my family members would like to lend me money at a rate of 5% so that I can day trade full time, something i have always wanted to do.
You are going to realize a 10 basis point uptick the moment that you are trading with borrowed money?
Therefore I am asking around to see if there is anything else I need to consider. I have set aside a bank account to cover losses using my own funds if losses occur.
Then use those funds to trade. Oh wait, they aren't enough to cover your living expenses.
Then they won't be enough to cover the losses either. You would need an equal amount to the loaned monies. Which you don't have.
Now lets please continue the discussion.
Sure.
Are you guaranteeing a return? How much is your cut? How does the family and friends get their money back out? How much time do they have to give you in terms of notice?
This is a really bad idea in the state of NY. You don't have a license to trade and this will get you sued and arrested.
How is that?
