Are Forex Managed Trading accounts worth the risk?

Question

I know most people tell you to manage your own money but I wouldn't know where to start. I'm looking for trustworthy sites that would allow me to start with a mini managed account, under 10k. I tried to find out the past return for some of these companies and I couldn't find nothing from no one. Shady?

Answer 1

The Smart Money link Joe provided was very good.

The only managed Forex fund I'm aware of (there are surely more) is one run by GFT. The publish their monthly performance (http://www.gftforex.com/services/gftmanagedaccounts/history-wallwood.asp)
but you have to be careful because they charge a quarterly performance fee of up to 25%. The performance fee is based on any profit you show for the quarter. If they make $10,000 for you in the quarter, their fee is $2,500 - a bit steep.

As far as doing it your self in Forex, unless you are an extremely disciplined trader, have an appetite for reading everything you can about the economies of other countries, understand how the economy of one country affects that of another, can deal with large amounts of risks and enjoy watching the computer screen for hours, stay away from Forex.

I've been trading Forex for a couple years and have become marginally successful but frankly, I make more money in the stock market doing short term trading (a few days to a few weeks) using technical analysis (something I don't advise unless you are willing to put in a lot of hours every week).

Whatever you do, stay far away from those highly promoted "systems" that promise to make you rich by buying when the lights are green or that generate income based on the carry (interest rate differentials in different countries).

Answer 2

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Answer 3

Forex trading is known for having a large number of scams. I have never heard of any managed account or mutual fund in Forex worth trading in. They all seem somewhat shady. The federal government recommends finding out about a company's past record before investing. I quote from the first link below:

"8. Be Sure You Get the Company's Performance Track Record

Get as much information as possible about the firm's or individual's performance record on behalf of other clients. You should be aware, however, that It may be difficult or impossible to do so, or to verify the information you receive. While firms and individuals are not required to provide this information, you should be wary of any person who is not willing to do so or who provides you with incomplete information. However, keep in mind, even if you do receive a glossy brochure or sophisticated-looking charts, that the information they contain might be false."

Answer 4

Personally I have a difficult time entrusting my hard earned money to a stranger. I appreciate your concern that the Forex market may seem overwhelming but there are some fairly conservative, simple stragtegies that can be used to generate a very fair rate of return.

I have just completed an analysis of the system that I currently use. I randomly selected the past 10,000 hours and calculated what the results would be. I would be happy to share the results with you and answer any questions that you may have.

Just send me an email at [e-mail]

Best wishes for a profitable 2007.

Paul
925 236-1839

Answer 5

CTS Forex is a D/B/A of Winsor Global Financial Inc. CTS Forex is a research driven investment manager with the goal of obtaining high risk-adjusted returns while striving to protect investor capital against volatility using a systematic methodology.


Our Forex managed trading activity relies on algorithms specifically designed for the foreign exchange market. Foreign exchange (Forex) is the simultaneous buying of one currency and selling of another. Forex is an alternative asset class with an uncorrelated performance to the equity, real estate, bond, and GIC markets. It is also the largest financial market in the world.


Our extensive research and partnership with the University of Calgary has allowed us to provide our clients wishing to invest in the currency market with transparency. Our systematic approach and experience enable us to deliver potential solid returns with low volatility on a consistent basis, and our solution is transparent down to each trade.


Winsor Global Financial Inc. is a member of the National Futures Association (NFA). Our commodity trading advisor (CTA) designation allows us to offer managed forex accounts exclusively to qualified institutions and sophisticated high net worth investors.

Answer 6

Binary trading is notoriously risky but if you follow a special method I've learned you can earn good money at almost no risk. This is the site I use: ( http://forexsignal.kyma.info ) I definitely recommend subscribing to this site in particular. I was a bit weary of binary trading from all the bad hype they receive but this site is pretty legit. This course explain everything you need to start a very profitable trading activity. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested and a good understanding of the rules

Answer 7

Hi Rocky, As you mentioned, the difference between retail and professional traders is that the professional traders have a good risk management system in place. It starts with setting up Stop losses and Take profits, according to the Risk over Reward ratio. To capture your profits, except Take profits, you can also use Trailing Stops. They bring the Stop Loss to a break-even level as the market price goes in your favor so that you can easier capture your profits. Most of the traders risk up to 2% of their equity. Let me give you an example - if you go long (Buy) 1 lot lot EUR/USD at 1.30000 and your target is let's say 1.30100 (10 pips), you will place a Take profit at 1.30100 and a Stop Loss half of your Take profit, at 1.29950 (5 pips). Basically you will be risking 5 pips (50 USD ) to gain 10 pips (100 USD). To risk 2% of your equity (5 pips EUR/USD per 1 lot EUR/USD= 50 USD), it means that you should have in your account 2500 USD. Now a second aspect you need to consider is the number of trades you place a day. For example you placed 4 trades today, according to your trading/risk management plan. All of a sudden, you wish to place another trade. At that point, you might need to reconsider that urge since you have risked up to the limit you have set. This limit needs to be chosen in a manner that allows you to sustain certain losses without being pulled out of the market. Maybe today from, let's say, 4 trades only 1 was profitable, but if you stick to your trading plan, you will have the option to trade tomorrow as well and turn your losses into profits, with another 4 trades. You need to have an excellent discipline when it comes to risking your funds or being impulsive, which is quite difficult to achieve once you see that some of your trades are going against you. Each lost trade is a lesson learned about how the market reacts to certain influences(news release etc.). You need to keep a track of your trades, review them on a weekly/day basis, of your choice, and check if you are sticking to your trading plan, which aspects of it need to be reviewed. Start the day with checking the economic calendar, to see which potential news release could influence the market price, after that if you are using technical analysis, check what direction of the market are they point towards, calculate the risk over reward ratio for the trades you wish to place and always make sure you take informed trading decisions. Another aspect is to be familiar with the trading conditions and with the trading platform you will be using as any delays with taking an action on your trade can potentially incur losses on your side. Make sure you have chosen a broker that does not manipulate your trades in it's favor and test your strategy thoroughly on a demo account before launching it on a live account. It is not easy to become profitable but if you are interested in trading and you believe that it is worth learning, then you might as well have a chance to make trading your secondary income source. Best Regards, FXCC Representative

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Answer 8

I don't think there are any legal "Managed Forex" traders
Reputable trading companies require you to tell them what to buy and what time element.
they may advise you before the trade, but do not trade without your say-so on each trade.

Answer 9

If you only have $10,000.00 USD then you should invest in ETFs and forget about Forex.

Top 4 Answerer.

Answer 10

They are not Shady. You just have to know what you are doing.
Before you invest.




Take Care,
Incomestorm
http://3in7s.ws
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