In the last episode, we discussed the problem of not knowing anyone to invest with your CTA. This week we discuss what to do when you know people who want to participate in your trading program, but you think they’re not suitable to invest. We also discuss the customer suitability rules applicable to registered CTAs, and why writing your own more stringent rules about suitability hurts your profitability.
What do CTAs do when they don’t know any prospective customers? The first thing to do is assess if this thought about not knowing anyone is true, and whether it’s useful. Often, the thought is untrue, and never is it useful. Listen to this episode to learn why.