How to invest at Forex?

Trust management at Forex – is a good method to multiply your capital with minimal risks. You conclude a contract on funds investment and a trader who has enough experience at Forex executes trading deals using your funds. A trader is a professional; he knows the market well and has great experience. Investing your funds using trust management you may be sure in profitability and reasonable risk level of this investment method.

If you made a decision to invest funds into the securities or speculate at Forex by your own be ready to expend time and energy in studying new profession. If you want to increase your capital but because of some reasons you can not trade yourself (no experience, time, will, etc.) trust management is for you, as stable results may reach only an experienced trader.

Assets trust management is one of the most popular methods of work at financial markets as for the companies so for the individuals. The advantage of the trust management at Forex is the opportunity to invest efficiently free funds without any additional expenses (staffing, the necessity to monitor the market and etc.) and receive profit which is as a rule higher than profit at the bank deposits.

The peculiarity of the trust management at Forex is that you have to just monitor trader’s work from time to time. Trust management is a way to make annual 50-70% profit. In some case profit may reach more than 100%.

It is very important for a person who wants to trade at Forex to understand the difference between speculation and investing. Currency trading is a speculating activity. Currency markets are the most unstable markets in the world. When one trade using margin the markets can not but become unstable. Daily currency trading may be extremely profitable and market participants who are ready to risk make great profit even within 24-hours. However, daily trading is a very difficult business and not everybody is able to trade during the day time. But many people who execute deals with currencies are not daily traders.

People using brokerage services are very often professionals in this or that field. But they do not participate at the daily trades and open positions just occasionally. This is a speculation as well and do not confuse it with the investing.

In conclusion, it is worth mentioning that the nature of trading at Forex is so that it is not connected with investing as speculation and hedging (hedging is used for forwarding instruments). It is possible to invest into the currency in the long term, however, large sum at the account and low correlation of the borrowed funds to your own are necessary.

If you know what Forex is but you are not in all nuances or just do not have enough time for trading, however, you want to invest your funds profitably look through the following suggestions:

What should an investor know?
1) First of all find a trader, financier who will manage your funds. Analayze the results of work of several traders for the period 3-5 months as minimum. Pay attention at:
a) % of profitability (a good trader makes 10-20% to the sum of the account);
b) Proportionality of the profitable and unprofitable deals (it is advisable that not less than 60% of opened positions will be profitable);
c) Average sum of losses (optimal 2-5% of the balance);
d) The number of opened lots for one deal (trading of 1 lot for every 10000 is considered to be more optimal for risks reduction; for example: if you have 20000 at your account it is not recommended to hold more than 2 lots open);
e) An experience of work with "live" money (1 year and more; traders with such experience feel the market, overcame through the extreme situations and know how to act to lose minimum; they are good in macro economy);
f) Stability (high level of profitability and absence of the huge losses for a long period of time);

2) Find a company where it is possible to find a good trader (there are special dealing halls where traders analyze the market and execute deals).
3) Decide what sum to invest (everything depends on how much you want to earn, taking into consideration that 20-30% of the profit you should pay to a trader; for example you find a trader with an average profitability 20 % and agreed to pay him 20% of profit, consequently if you want to earn 1000$ in a month a trader should increase an account by 1250$ monthly and this is 20% from 6250$, so you have to invest 6250$; keep in mind that the least is the sum of your investment the higher is risk connected with the deals execution on this account;
4) Decide on the dates of investment (the best result will be gained if you invest for the period not less than 6-8 months);
5) Decide how you will decrease risks (it is well known that the opportunity to make extra-profit entails risks to lose which is necessary to minimize);

For example:
a) Determine the sum of the maximum acceptable loss (30% from the deposit sum is considered to be optimal);
b) Determine the maximum acceptable number of the unprofitable deals in succession (for instance: 6);
c) Determine the methods of the account balance control;
d) Suggest other investor to increase your account balance (you share risks and profit with them);
e) Offer a trader to become one of the investors for your account;
f) Open an account in a cheap currency (1000$ is a high risk; 32000 rubles is a risk decreased in 32 times. Currency account management, except USD accounts, is operated only by the financial bookmakers;
g) Use a credit line;
6) The final stage is to choose a broker or financial bookmaker (pay attention at the experience of the company, license, simplicity and speed of calculations, reviews of other traders and investors; also check the rules of trading: spread, commission, night interest.