Partnership Trading Account
Online Trading is a one-man show. Partnership accounts normally do not do well , although they have a chance to succeed if the responsibilities of each partner are delegated explicitly beforehand. Only one partner makes the analysis ; the other one makes the executions. Neither can be involved in both. Another form of partnership is that one of the partners do the analysis and execution ; the other is a ” sleeping partner “. I have seen partners trade in this manner too - one do the trade entries and the other do the trade exits. So there are many possible combinations …
One of the problems with partnership accounts is the fact that one person in the partnership is responsible for the complete assets of the account. This works well when the profits accumulate , but when the losses start to mount up , arguments and finger pointing often begins.
The markets are erratic , and even the most seasoned investment professional can hit a losing streak. When that happens , even the partner …
