Now, with the growth of the financial literacy of people investing - investment capital available - is gaining popularity as a way of additional income and risk allocation. 
forex market provides the greatest opportunity to maximize their investment. But he also has no small risk. Especially for investors. Which typically do not have access, time or desire whatever to figure the intricacies of the market.


 

What are the main pitfalls encountered on the way an investor?

1.    The complexity of a full legalization trust agreement - often investors and traders are far from each other.

2.    For the same reason almost impossible to verify the financial security of contract trader - the investor does not know if the trader is able to cover the losses on contracts with negative developments.

3.    The investor does not know the intricacies of the trading strategy used by the trader, and cannot properly assess the situation on the account.

4.    Investor cannot really control the observance of trading discipline.

5.    The transfer of funds to the account of the trader, the investor loses almost completely control them.

6.    Virtually all of the financial risk borne by the investor.

7.  Often, funds are given to the management of only one trader, which greatly increases the risk.


PAMM-account as a way to address the main problems.

 

 

 

With the PAMM accounts, many of these problems are easily solved today

1.  Eliminated the need for legal registration of the Trust Deed. The Company offers the PAMM PAMM 2.0 especially taking responsibility for overseeing the financial security of all points of the contract (offer).

2.    Investor funds are in his account and under its control.

 

    3.  PAMM-account 2.0 provides the ability to distribute not only to make a profit, but also the possible losses.

 

Advice to investors

 1.    Carefully study the trader, before entrusting him with their money.

2.    Pay attention not only on his return over certain periods, and the maximum drawdown in the accounts. Stability key dimensions of the trader.

3.    Ask Steytment provide at least for the last 6 months to assess the smooth growth of the deposit.

4.      Pay attention to the way of money managament, the use of methods to limit losses (the next stop or hedge).

 5.     Do not give all of their money in the management of one trader, be sure to spread the risk. If possible, spread your money between 3-5 traders.

 

 

Read more:

- a managed PAMM accounts - BASIS successful investment

- INDEX PAMM accounts - Example of risk-free FOREX INVESTMENT

Questions? 

- Come to the forum and ask questions of an experienced trader >>>