Let Someone Else Manage Your Forex Trading Account
By [http://ezinearticles.com/?expert=Michael_Russell]Michael Russell
Have you been trading on the foreign currency market for a while, but realize you don’t really have the time it takes? Forex trading is not a volatile as other markets, but it really takes a lot of intense research to do it right. Missing the right entrance point could mean missing making a profit at all. Missing the right exit point adds even more frustration to the loss. Perhaps you’d appreciate having someone who watched all that stuff 24/7 for you and made the trades you would have made.
Or maybe you’re a new trader, still unsure enough to want to risk money on your own floundering knowledge. If you want to get involved while learning, a managed forex trading account could be for you. This way you can watch the trades your expert makes and judge the reasons after the fact, learning as you go.
Yes, it might be real nice turning over the responsibility for all those decisions to an expert. But that, in itself, can be nerve-wracking. You’re entrusting your hard-earned cash to a relative stranger whose decisions will make the difference between income and loss in your trading account. This is hard for some people to do.
But one reason you should is that is if you hire a professional, it’s his/her business to be on the watch at all times. He doesn’t have another job to go to, like you do. This is his job and hopefully, his passion. The entire management company, who has someone on watch for you 24/7, backs him up. If you do it yourself, you at least have to sleep. You can’t hope to devote the time to it that they do. And with forex markets, there is no “bell”, no “closing time”. Every minute of every day, currency is being traded and prices affected somewhere in the world. $1.5 trillion is traded every day on the forex market.
Another big reason to use a managed forex trading account is because most management firms work closely with several banks, or may even have a common ownership relationship with a bank. They keep close contact with the banks and therefore know currency exchange rates before the average investor could find them out. This allows them to make wise decisions and trades ahead of the investors who have to wait and find these statistics in the paper or even online.
On the downside is the fact that a managed account will usually require a substantial minimum investment. Depending on the firm you can expect to be required to invest anywhere from $10,000 to $20,000. This will price many people out of the decision. Even those can step up to that plate financially may hesitate at the thought of the management company making the wrong decision at the wrong time and losing all that money. You should definitely not invest more than you can afford to lose, so consider the price carefully.
The average managed forex trading account earns from 5 to 20 percent, which equates to a minimum of $500 monthly. Make sure the management company is experienced and get their historical profitability picture if you can. Make sure they’ll work with you until they understand your trading style, needs and want, so that they can execute trades on your behalf just as you would have. If you can afford the initial investment, managed accounts can be great place to start in forex trading.
Michael Russell
Your Independent guide to [http://forex-trading-guided.com/]Forex Trading
Article Source: http://EzineArticles.com/?expert=Michael_Russell http://EzineArticles.com/?Let-Someone-Else-Manage-Your-Forex-Trading-Account&id=615505
If you're new at forex trading, or you just don't have the time to do the proper research, you might want to get a managed forex trading account. Just learn the pros and cons first.
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