What is asset management?
Today Forex trust management (DM) is at the peak of the trend movement. Anyone who has a hundred or two dollars, can easily invest in CONTROL on foreign exchange. Many bear the loss, having trusted or fraudsters, or inexperienced traders (for companies). But that's not stopping "investors" because the ability to receive money from the air seems so alluring that forces investors to quickly find (or even have) the new amount for regular contributions.
In this article we will talk about how to use the Forex managed accounts, to avoid losing money and multiply with minimal risks.
Currency exchange Forex allows you to start investing with small amounts even 50 $ will be enough to start. The maximum amount is limited by only your capabilities.
Profitability can be any, reaching 50-100% per month or more. Stable are considered deposits with capital gains in the 5-10% per month.
Also worth to distinguish between direct traders and investors: first run features, buying and selling different currencies (or other assets), the latter wish to invest money and earn profit on them. Rarely, but there are cases when the trader is at the same time as an investor, buying an asset such as gold, to sell it later at a higher price. These are usually long-term trade when the transaction can be held open days, weeks or even months.
Types of asset management
1. Direct investment in a particular trader.
2. Use pamm accounts.
3. investing in a company, where traders are trading.
In the first case, for the investor, there are 2 risk: loss of deposit by the trader or stolen funds. Using pamm-accounts allows you to exclude non-trading risks as a trader cannot directly withdraw 1 invetora. The use of equity trader and profiting from investrskih funds only in case of closure of the profitable trades makes the trader the most interested in the lucrative trade. In view of the fact that the credibility of the reliable dealing Center, which provides the service of pamm-investorirovaniâ, always higher than to a particular company, the host resources in management, it can be concluded that the pamm-account for today-the best way to increase funds and exclude non-trade risks.
Of course, you can't put all your eggs in one basket. With 500-1000 $, it is unwise to invest all funds of one trader (pamm-account). With a capital of $ 2,000, the investor can invest 5-10% of their capital in aggressive PAMMy or other places with elevated risks. This assumes that, in view of the amount and the correct management of its potential losses from risky investments are compensated by the profit on stable deposits.
Asset management-action plan
If you have a certain amount with which you are ready to begin your journey as a Forex investor, you will need a clear plan of action. It should be simple and clear for you. Example: capital is $ 1000. After a preliminary analysis of the trade of managing traders on pamm-accounts were selected 2 conservative and 1 aggressive trader. The average return on these accounts amounted to 10% and 30% per month respectively. Share capital at 3: 45% +45% invest in conservative traders, 10% in aggressive. Thus, we expect a profit of 90 +30 = $ 120. (Download video "pamm-investor" )
Capital increases, it makes sense to increase the number of accounts, increasing investments in already selling profitable traders. Some investors use the following technique: select data account with great arrived for trade (from 6 months) and are (their money) in downturns, when the schedule a little trade value falls. The calculation is simple-if an investor trades profitably for a long time, he will come out of the slump, and the investor will receive profit faster.
Don't be greedy and do not pursue large interest. In investing, but less stable. Sometimes you can do risky investment, but this should not get too carried away-you can lose the entire capital.
Use Forex managed accounts to increase their capital, receive a steady income and, ideally, to live on the interest. Good investment!
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