Managed Forex – The Sole Means To Profit From Forex
Managed forex funds have existed for many years. As long as the foreign currencies themselves have been around. The thought of managed forex funds is not anything new. They They are already popular for investors in mutual funds. In essence they are just flexible investment accounts run by a professional.
Nearly 99% of all traders lose money on forex. But this is to be expected, especially when forex brokers are offering leverage of up to 500:1!
The attractions of leverage are many. Let’s examine them in some detail now 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.
I think that many traders have thought about this though. But reality is, of course, very different, which is most investors give up before they lose their shirts, and open a managed forex account. Because let’s analyse what happens when things go wrong, and leverage works against the trader. So, that same trade, let’s first add in the spread. If you trade the Cable, then you have a 4 or 5 pip spread, which already puts you 40% down on the trade – a few small pips later, and you’re busted!.
And so this is the valid cause why managed forex accounts have become so popular – pure greed. To find the elusive magic wand of forex trading. The reality of course is very different. After a month, maybe two, reality has set in, as 99% of traders end up giving up on their dream, and either revert back to their day job, or to think more rationally, and think that it is better to get the rest of their savings managed properly, and to invest in a managed forex account.
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The fact of the matter, is that the only sure fire way of making money in the forex market is to find a properly qualified forex money manager, and open a managed forex account. These days, there are literally hundreds, if not thousands to choose from.
As they say, preparation is key to anything, and it is the same for opening a managed forex account – do your research into the fund manager, and make sure you are comfortable before parting with our hard earned cash.
To summarise, whilst trading forex is doable, it is clearly better off to open a managed forex account. Better to invest your money with experts, in a managed forex account.
The world wide web is filled with constructive information on managed forex products, and we have set out a couple of examples here, where you can get more facts about a range of important forex managed accounts and assessments of individual managed forex funds and find out more about the exciting and profitable world of forex trading.
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