The ascent of managed forex funds began around 3 years ago.
Investors were worn-out of losing money on the stock market, and looking into
alternative investments. Millions jumped into the real estate market, on the
back of soaring prices and cheap loans. But when the credit crisis happened,
many people lost everything.
But those wise enough to invest in forex managed funds
avoided all of this. Currencies performed very well as other asset classes
crashed. It is because there’s little or no correlation between the foreign
exchange market and the stock market. In other words, if the stock market
falls, thecurrency market may still go up.
Managed forex funds is the expression used for the accounts
traded for you by professional trader, known as the money manager. It is an
ideal approach todiversify your investment and increase overall returns.
Managed forex funds works well for both retail investors and forex traders. It
allows access to the knowledge and expertise of an experienced forex account
manager or forex money manager with norestrictions and entrance charges of a
hedge fund. It offers the following benefits:
Consistent returns either in a rising or declining equity
market
Diversification from the traditional equity/bond portfolio
Disciplined, risk controlled trading of liquid assets
Daily reporting of account positions, accessible online
24/7 access to account balance
Immediate access to funds
An important feature of the managed forex fund that protects
your fund is that the money manager doesn’t have the power to withdraw your
funds. Your funds are held by theforex broker that you open your managed forex
account with. The forex money manager is able to trade for you but he’s got no
control over your account, and cannot withdraw any funds from your account.
The managed forex funds is attractive to those people who
want to participate in the currency market trading but just don’t have the time
to do so because of a very busy schedule. It gives you access to forex trading
without the need to monitor the forex market all day, every day. Instead, your
money manager will be the one doing all the work for you without putting your
money on the line. Another option that allows you to trade forex without the
hard work is to use scripted software that will help you place trade on your
behalf. You can consider using a scripted Forex Robot that’s been fully tested
for its profitability. Having a good software by itself does not guarantee you
of a 100% successful trading experience, it is very important you follow the
Strategy Guide provided with education material that comes with the Robot.
If you finally choose to have managed forex funds, you must
be aware of all the possible consequences that it has, and you should also be
very realistic when it comes to deciding the total amount of ‘risk capital’
that you will be investing. ‘Risk capital’ is the capital that you can actually
risk losing in the end; you must never risk a capital which will eventually
change how your life works every single day as this wouldn’t be very practical.
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