Thursday, May 20, 2010

Forex Managed Account - The Secrets to Superior Returns

There are a number of reasons to open a Account Forex Managed

TimeInvestors that do not have the persistence to be able to Trade Fx
Knowledge
Investors that don't want to bother with official training.
Nerves
Investors that do not possess the nerves to be able to trade their own money.
Time
Investors that will not possess the time to allocate to becoming a prosperous trader.
Education
Investors/Traders looking for a return whilst studying to trade profitably.

There is an old adage in investing that individuals shouldn't trade with money they can't afford to lose. A forex fund provides a source of diversification from other assets. by committing to an account forex managed you're letting experienced money managers trade on your behalf

It is particularly important at a time when there is widespread fraud in the financial industry that you simply make every effort to investigate a fund before committing to it.

You should take a look at a variety of factors when judging a fund. The first thing you need to take a look at could be the performance history of the fund. There is an old adage when it looks too good to be true, it probably is. A set of consecutive positive rates of returns with no negative periods would look suspicious to me. You also need to ensure of the regulation involved when the fund is based outside the U.S.A.. Funds located in the Caymans and elsewhere have a very loose set of regulations. There has been horror stores where all of the money invested in the fund is lost. You have no recourse to any action when there is no regulator in place. You need to make sure the fact that fund is really a legitimate business. You'll have a look on the website and see if there is a proper contact address.

There are quite a lot of factors to think about when deciding which forex managed account to select. The very first consideration is trust. Do you know the people or company running the fund. Are you able to get any references ? The second consideration is cost. High charges will ultimately destroy the fund returns. Thirdly we should have a good understanding of the fund's unerlying method. Is it a trend following fund which is subject to large drawdowns at times. How frequently do they trade ? The longer the history of the fund the better. It is suggested to never invest in a forex managed fund that does not have a trade history of under three years

No comments:

Post a Comment