DRAGONS DEN: The Day Trader
DRAGONS:-
TOUKER SARAH DEBORAH STEVEN PETER
SULEYMAN DAVIES MEADON BARTLETT JONES
ENTREPRENEUR JULES SPENCER-BARRETT
Scene one: Jules and his father Charles Spencer-Barrett stepped out of the lift and into the den. Charles, the father, was elderly, portly man in his sixties, wearing smart expensive suit, white shirt and a pale blue silk tie. Jules on the other hand, was a young lad about twenty, wearing white T-shirt, jeans and white trainers. He was lean, tall, towering over his father, light hair in modern style, a very good-looking lad.
Charles: Hello Dragons, I have come to introduce my son at his behest, since he thought a senior figure present would give his pitch more credence. Jules here will present a hairbrained scheme that will make him and you lots of money. I want you Dragons to quiz him until his head hurts and if he succeeds to convince you to invest then I may be persuaded to invest in him myself.
Jules: Thanks, dad, for that cynical introduction. Please go now before you make my pitch here more difficult. Hello Dragons, I’m here to present a guaranteed scheme for making you great profit. My friend and I have developed a system to follow the world’s best Day Traders across five Stock Exchanges in different time zones. We spread our buys with five of the best traders in each zone, which we have selected from previous week’s top ten trader results. We ghosted the system for six months prior to investing real money. Daily we made between two and five percent on our fictitious investment.
I am asking each of you to invest a hundred thousand pounds and I will guarantee you full return in twenty working weeks, another hundred K in next fifteen weeks and same in the next fifteen. Your initial investment is fully insured with Lloyds.
The reason that I’m here is that my bank, Coutts, won’t invest in a student with no security or financial credentials. Your investment in my scheme will do three things for me: The amount will break through the glass ceiling with the Brokers; My fixed costs will reduce drastically; and I will be able to get the bank to lend me millions based on your interest in my scheme.
Also, me and my friend will make a shit load of money. I’m open for questions.
Peter: If the investment looks too good then there must be a catch. Have you and your friend invested and benefited from this scheme of yours.
Jules: Yes Peter. My aunt left me an inheritance of twenty-five thousand pounds six months ago. We invested ten thousand pound each and made over three percent each day. Don’t forget we converted that ten thousand effectively into two-hundred thousand. The broker allows us to leverage our money by four and we play five markets a day. You can do the maths.
Peter: In that time did you ever make a loss?
Jules: Over the six months of ghosting and six months of real cash investment we haven’t shown a loss in any exchange. The percentages may vary but average over two. In each exchange we use the top five traders and follow their investments to the letter: buying and selling.
Peter: That’s impressive. Sounds almost too good to be true. Let me think a little.
Sarah: How did you get into this? And how did you learn about day trading to be so profitable?
Jules: Hi Sarah, it’s a sad story I’m afraid. At school, a boy in my class came up to me with a proposition. He said he would give me fifty pounds a week if he could join my clique of friends and stop him being bullied. I laughed at him and asked where would he get that much money? He answered that he ran a profitable business constructing web sites. So foolishly I said he should therefore give me more. He said he would if I proved that I could save him from being bullied. I agreed on the condition that he changed from being a nerd to a geek. After school we went into the town and bought him some classy jeans, T-shirts, stylish denim jacket and nice sneakers. Trainers are old hat. New modern hair-cut and new classy glasses and he was transformed into an acceptable member of our clique. I also insisted he changed his name from Willy to Jake.
Sarah: That is a sad story but you haven’t answered my question. Where did you learn about day trading?
Jules: I profess to know nothing about the intricacies of day trading. We make money sitting on our hands just copying the experts who are exceptionally good at it.
Steven: Let me jump in Sarah. Where and how did you find these experts and how do you manage to copy their trades?
Jules: Hi Steven, Jake researched all this some three years ago but didn’t have the money or the guts to trade. These true experts advertise their skills to encourage investors and they catch a lot but entry fees are high.
Steven: So why can’t I go directly to one of your traders and by-pass you.
Jules: You certainly can but your returns will be pitiful compared of investing with me. Firstly, they only trade your money on one exchange and secondly, they will leverage your money but only give you the interest on your initial investment. They keep the rest that they leverage and even use it on other investments for their own profit.
Steven: How do you know all this?
Jules: When we ghosted them there was always a major difference in their actual payout and our calculations.
Touker: May I jump in with a question. Your scheme payout seems too good to be true but I go along with it so far. How do we receive our payments.
Jules: We have a facilitator in the States that coordinates our brokers and all cash flows. The facilitator will make the payment to your account either in the UK or offshore. We know you all have offshore accounts which are far more tax efficient.
Touker: How do you know all that?
Jules: Jake checked you all out so that we can set everything in motion. It’s easy to get personal bank account details but not the access which needs passwords and security systems.
Deborah: I’ve heard enough and I’m not comfortable with this so I’m out.
Jules: Deborah, please hear me out. It’s important that all you Dragons invest. As an example of the security of the system, let me tell you of my current lifestyle for the last six months. As a first-year student at Imperial, Jake and I live in a large two-bedroom flat in an apartment hotel in South Kensington, close to Imperial. We pay four thousand pounds per week each for being well looked after. I pay all university fees so I’m debt free. We both have a girlfriend living in and we fund all the food, other than breakfast which is provided. How can a poor student afford all of that without a money-making scheme. It works for us and it will work for you. We stand to make millions out of this without any risk, particularly if the market collapses where most millionaires make their money.
Deborah: Well, you have persuaded me. I will join the rest of the Dragons since they appear very interested in your scheme. It appears secure and kosher.
Jules: Thank you, Deborah and since you are all nodding then thank you Dragons. I won’t fail you.
Post Mortem
Charles: Hi son, well done with the Dragons. Since you convinced them to invest half a million on your scheme them, I may take the opportunity to request that Coutts lends you the few millions that you need.
Sarah: Charles, may I borrow your son for some more grilling. Now Jules, why didn’t you bring Jake along. We would have liked to meet him.
Jules: He is ever so shy and he would just die of embarrassment if he was here. Hi Deborah, join us. I was just describing Jake and why he wouldn’t come. He’s a peculiar character and I couldn’t, in our years together shake him out of it. He comes from a musical family and his father was a session musician. Jake joined him as a guitarist but would only play in the studio not stage.
Deborah: You mentioned that he has a girlfriend. He can’t be that shy?
Jules: True, and he’s besotted with her. She’s Malaysian, come over to improve her English. Currently she is working as a hairdresser in a posh salon where she gets to chat continuously with her clients. She’s a really beautiful girl and a wonderful cook. She caters for us each evening. Her family own a top end hotel and restaurant, so we are cock-a-hoop with her staying with us.
Sarah: So how did you or Jake meet her?
Jules: She was a cleaner/maid at our apartment-hotel and wasn’t getting any experience in talking English. The other maids are Philippino and Nigerian. Got my sister to get her a job at the salon she frequents and Jake, bless his soul, invited her to stay rent free. She’s lovely and good for him.
Peter: I overheard some of that. Can I burst in and ask a technical question?
Jules: Certainly Peter. As long as you don’t ask me about the intricacies of day trading. I know very little about it. I just use the skill and expertise of the world’s best.
Peter: I want to know how you found them and how you manage to copy them so successfully.
Jules: They advertise their services on the media and flaunt their success to attract big investors. As I said earlier, their payout is pitiful compared to my scheme. They don’t include the leverage on the initial deposit, so you only get a quarter of the profits. Jake is an IT genius and is able to hack into their broker’s system and get their suffix or key for their trade. Our computer programme or algorithm just follows their trading within nanoseconds of theirs.
Steven: I overheard some of that Jules. How is it that the Broker’s system hasn’t picked up on the hack?
Jules: According to Jake the intrusion is so minor and not a threat to their security system which ignores our access and treats it like an initial programming glitch. According to Jake it’s so well hidden and disguised as a harmless programming element that even an IT specialist would find it and ignore it. No one has noticed it as a threat over six month’s of ghosting and six months of live trading over five top notch broker firms. We don’t harm or damage anything.
Steven: Well, that’s good to know. What does this facilitator do for you and why do you need him?
Sarah: That’s a good question. Explain again Jules.
Jules: The facilitator does a number of things for us. Firstly, he gives us access to the top broker firms. Secondly, he handles all the money in terms of transfer of funds to the brokers, sets the parameters for our trading and collects our winnings after a lapse of three days. Thirdly he provides us with the insurance for our initial cash investment and fourthly he gives our company credence with the brokers, so their charges are much lower.
Steven: So, you have a Company set up do you?
Jules: Yes, a Limited Company set up in the Bahamas which holds our money and will pay out the dividends to you. Dad’s Chairman, Jake is IT director, my sister is Secretary and I’m the Finance Director. So, it’s all kosher.
Peter: So, what happens at the end of the year?
Jules: Good point. You get your money back plus doubled. Then you can invest again.
Peter: So, what happens to our initial investment?
Jules: It stays in our pot and we continue to trade with it and make even more money for ourselves.
Steven: So, you have a good system. Is there a limit to our investment with you?
Jules: Not really but after the initial year we are not as generous with the dividends. You’ll get your money back, and doubled but we will cut the guarantees to save on insurances.
Sarah: If all this is kosher as you say you are going to make millions out of this.
Jules: Certainly, particularly if Coutts lend us a few millions and dad invests a few millions on the strength of your interest in our scheme. As you can see, you guys a crucial to our investment plan so thank you for your agreement.
Peter: How is it you bank with Coutts?
Jules: It’s a family thing. Father is a multi-billionaire, a financier of billion-pound projects where he introduces investors and then creams off a generous dividend. This allows the family into Coutts without bank charges. He keeps his children short, not that we miss on anything important. Mum sees to that.
Deborah: Who else benefits from your system apart from you and Jake?
Jules: You get double your investment within a year, the bank will only get the extortionate interest, Dad will get back double his investment like you and my sister will get a hundred K in her offshore account that she doesn’t know she has, to be available when she marries some chinless wonder.
Deborah: You don’t seem very keen on your sister Jules. Spill the beans.
Jules: Being older she used to make my life hell. Pinched my pocket money. Dad kept us short. Wouldn’t invest part if her inheritance when she had a chance to join us in the scheme and now comes to me for a sub since she’s blown twenty-five K on clothes and boyfriends. I simply put her on the pay roll because she’s family.
Peter: That’s generous and loyal of you. Makes me more confident in our deal. Looks as if the party is breaking up. Best of luck with your venture. It seems that I might just come to you guys for a substantial investment in my companies.
KONIEC
