Managed Forex Trading - Don't Select Your Trader Blindly
Managed forex trading can be defined as funding an expert trader
, a trading company, or a forex robot to trades for you. If you are an investor and looking for a best way to double your money instead of let it rot in your bank account, this is one of the best alternatives.There are some benefits that you can gain from managed forex trading:
1. If you still have doubt, you can perform testing by opening a small account. If you want to test by invest in small amount, some forex broker even allows $30 as initial deposit.
2. A good forex trading company is transparent, so you now what they do with your account, when they trades, how much their earning / commissions, profits and loss, what currencies they trades, what strategies that they used, etc.
3. If you choose professional trader, your money is managed by professionals who do trading as a living.
4. If you use a proven forex robot/expert advisor, your account is being taken care by a working trading system that will generate profits for you.
5. A real trading company will also have real time account management and reports which allow you to access detail reports for the trades at anytime as well as ask for a withdraw whenever you want. Note: you can't expect fast process for money withdrawal, it may require 24 hours or more.
6. If you don't know anything about forex market or you just simply don't want to bother with such details, you can just pass all the trades to the company/robot and waiting for the profits reports.
However, managed forex trading is not without risks. You have to aware that no trading company can give their promise to make profits for you in a paper with their company logo, CEO sign, and company's stamp. Formally, it is against the law to promise such things, but in the other hand, it also gives them a secure position.
How? At the front page of a forex company website, usually you will see "Managed by professional traders" written with big fonts, but these are some points that you get when you click the tiny "Risk Disclosure" link way at the bottom of the page:
1. "The possibility exists that you could sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You may be liable for losses that exceed the amount of margin that you post. "
2. "All opinions, news, research, analysis, prices or other information contained on this website are provided as general market commentary and do not constitute investment advice. We will not accept liability for any loss or damage, including, but without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information."
3. "We have taken reasonable measures to ensure the accuracy of the information on the Web site, however, the company does not guarantee its accuracy and will not accept liability for any loss or damage which may arise directly or indirectly from the content or your inability to access the Web site, for any delay in or failure of the transmission or the receipt of any instruction or notification sent through this Web site."
Basically, according to this Risk Disclosure, they don't have any responsibility to make profits for you as the investor. They will have their earning from spreads or commission per trade; it doesn't matter if it is a losing or a winning trade. Bottom line: they have nothing to lose in each trade while you put your money on the line. This is the hard facts for any investor in a managed forex trading.
With all that facts, you may be ask: Is it possible to have a managed trading account in a company and gain profits from it? Of course; but only if you can find a REAL trading company who aims to make profits for its clients. You have to be very careful when you trying to find this type of company since forex market are full of unskilled people who can spit very convincing bragging. They are the scam forex companies.
They are attract investors by promising various benefits and make him deposit his money, believes that it is the wisest step. This money is NOT really traded at the forex market; these fake traders only pretend to make analysis and trades based on current market data. These trades mostly contain of loss trades and they devised various excuses for their losses. After they have squeezed the investor dry, they will take cover behind the risk disclosure and move on to the next target.
It is not easy to spot these companies; I can only suggest you to be very cautious of these signs from a company:
1. Promise a lot of profit.
2. Promising something impossible such as no financial risk.
3. Refuse to give their performance track record.
4. Engage high pressure tactics.
5. Encourage you to transfer money quickly.
6. Contact you by unsolicited phone calls, particularly using third party service.
With various risks behind it, managed forex trading is still a great way to invest your money. Just make sure you really cautious about where you put your money.
by: Matthew Johnson. Watch Peepli Live Online How To Take An English Course Online Master Resale Rights - You Can Begin To Make Money Online Today Fx Trading Basics Discussed: How To Trade Currencies The Right Way Boost Online Sales With High Quality Photographs Online Shops For Ofws Bagsok: Perfect Bags For Summer Online Cheapest Way To Send Rakhi And Rakhi Gifts Online Through Giftstoindia24x7.com The Advantage Of Using Online Shops Why You Should Sell Your Gold Online Instead Of A Retail Store Online Degrees With Revolutionary Study Materials How To Select A High Quality Handbag At Lower Price Online Where Do Online Shoppers Start Looking?