i was talking with him about my stock and forex trading, and i was telling him about a business model i had in mind.

Traders at the hedge fund level do not want to waste their time with people who do not behave professionally.

This is one of the reason Robert Kirosaki states why he doesn't invest in Canadian real estate.If you are concerned about exchanging money - find a forex broker (e.g. 

A good friend of mine is in finance -- trader/equity analyst at a prominent broker/dealer -- and he's able to derive all kinds of economic information from the Census/Labor stats.Hope that helps.Anthony

Similar to stocks, there are investors (long term hold / passive) and dealers (day traders).

I'm also an ex-stockbroker and trader.

Before retiring (at which point it is prudent to shift your risk/reward ratio), I used to be an active futures trader.  

My first job out of college was an assistant trader/doing grunt work for all the traders.

My best guess is high frequency traders (a.k.a. computers) making algorithmic trades based on current positions, not the fundamentals of the companies or the economy. 

For ex. suppose you were to loan someone money say 10k and either took out a mortgage on their home or used something else of substantial value well in excess of the loan as collateral, how would the excess be handled in court or otherwise?