How to raise capital.

Here are some notes that I took from another CD that I listened to about investing and raising capital.


Until you know how to run a business, don’t raise capital for it. If you can tell a good story and can present adequate financial statements you’ll be able to raise capital. If you’re going to tell a good story you’ve also got to perform/show past performance.

DON’T ARGUE with your potential investors. You’re getting dumber when you do it, aren’t seeing other things, and might not have caught some of the due diligence that you needed to do.

If you’re afraid of something you’ll bring it into your life.

A trader NEEDS to be NEUTRAL to winning and losing within the framework of a sound methodology.

Money managing/position sizing - make sure you’re not putting so much on any one given trade that if you’re wrong that you can’t play anymore.

Traders lose two or three months of the year, but generally win the rest of the time. 50% is the minimum this guy has his trainees winning.

Low risk idea is something like the marble game. Winners are much bigger than losers. Positive expectancy is having the probability of winning being higher than the probability of losing.

Low risk in real estate is always buying something that puts money in my pocket.

If you’re so afraid of losing you’ll lose. Those that are most afraid will lose the most. Examples of that would be money market funds or a certificate of deposit or a bond mutual fund. Those things could go to zero or near zero or you’re losing your purchasing power by having them in it with inflation always being around.

The ability to be a good trader is 99% psychological.

Have a coach or mentor. Someone you admire, who is successful at what they do. Someone you can watch on a very intimate detail.

Make sure that you know when to get into a position and when to get out.

Always have low risk ideas, i.e. cut your losses early.

Practice with seeing both sides of the market.

Trade your way to financial freedom is this guy’s book. Iitm.com