Managed Forex Accounts – The Sole Technique To Gain From Forex Trading

Managed Forex Accounts – The Sole Technique To Gain From Forex Trading

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Managed forex accounts have been around a long time. They have been around since the advent of foreign currency as an asset class in itself. The conception of forex managed accounts is not new. They They have been around for a long time for stock and bond investors. In essence they are just flexible investment accounts run by a professional.

I have lost count the number of forex traders who have come up to me and told me they have lost their savings, or blown up their account, or otherwise lost thousands of dollars trying to make money out of forex trading. In fact, in this regard, they are not forex traders at all. They are just mugs who saw an advert on the internet, and thought that they too could make an easy living just by pressing a few buttons.

OK, so I will illustrate for you how leverage actually works for you. This might be an eye opener to even some seasoned forex traders – and I’m sure that for some of the novice currency traders reading this, it will be totally new material. So,let’s imagine a newbie, would be, hot shot trader sees an advert for currency trading, where he can use 500:1 leverage. He’s thinking, ‘Wow, great’, who needs to be sensible, and invest their money in a managed forex account, when they can take a few risks, take a gamble, and quadruple my money with every trade. They are already doing the maths. With just a $1000 account, they can trade $50 a pip. So, for each 20 pip trade, they make a $1000. Wow! On average, the daily range of say EUR/USD is over 100 pips. And that’s just one pair – what if I traded 5, 6 or even more currency pairs? So, let’s say I make 5 trades a day – that’s a 500% profit per day. So that’s $5,000 on Monday, $25,000 on Tuesday, $125,000 on Wednesday, $625,000 on Thursday – by the end of the trading week on Friday, he’s got over $3,000,000 in the bank, and he can retire.

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I don’t think this is such a unique though process to have. But the harsh reality of the matter is that 99% of traders lose out, and resort to opening a managed forex account in order to make money on the currency market. So let’s look at how leverage can cripple a forex trader, and when leverage causes the trader to go bust.. The spreads will cause you a big drawdown, and with a volatile currency, as most are, and you can blow your account in a few short, but expensive, minutes!.

And so this is the actual cause why managed forex accounts have become so popular – pure greed. To succeed where others have failed. But reality sets in after heavy losses, and most move on to invest in a simple managed forex account.

At the end of the day, the only way to ensure you have a chance at profiting from the forex market is to leave it to a pro, and invest in a managed forex account. After all, you wouldn’t wire your own house to save paying an electrician?

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It is of paramount importance that an investor carries out their due diligence first, such as seeing detailed account statements, doing a background check on the forex fund manager etc.

Therefore, we can see that trading in the foreign currency arena is fraught with difficulties, and you are much advised to research a well run managed forex account. Better to invest your money with experts, in a managed forex account.

The web is complete with valuable research on managed forex products, and we have listed two examples here, where you can get further information about a assortment of leading forex managed funds and assessments of individual managed forex funds and find out more about the thrilling and beneficial world of fx trading.

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