How to invest in Forex?
There are many ways of investing funds with the aim to gain profit in the currency market. However, when we speak about investments we usually mean passive income. A special system of PAMM investment has been designed for the investors who want to earn passive income. The system combines high-yield trading and benefits of passive income, which does not require permanent money management. That is why this system has won great popularity with both investors and traders. Read more about it in this article, and we will show possibility of earning passive income with the help of PAMM system and will offer the most effective ways of investing. Have you already get familiar with the system of PAMM investment? Have you already decided on the best PAMM account for you? In this case this article is for you, as it will help to determine when and what amount of funds shall be invested in a certain account depending on your expectations and specific of a Manager. We offer you the most profitable strategies of investing in Forex.
Strategy №1 “Stability is the key to success”
Comparing this strategy with a saying “A sparrow in the hand is better than the pigeon on the roof” we can say that we prefer a “sparrow” and let a “pigeon” fly in the sky. You should select an experience trader, who has been trading in the market for a long time and who knows the rules of risk management very well. He should also have a record of stable and regular income. This Manager does not suffer great losses; however he does not earn high profits either. We select such kind of PAMM account and invest any time and any amount of money (as trading is stable and does not depend on the conditions of the market). After that you can forget about the deal until the time of a rollover. After a rollover you can withdraw or reinvest your interest and initial amount of money. As you can see, this strategy will not allow you to earn high profit, but this strategy will give you stable interest of about 35 – 45%.
Strategy №2 “Plunging headlong into a deep pool”
Our main task here is to find a “deep pool.” Unlike the first strategy, here you cannot invest money in this account at any time. You should invest your money at the moment of a drawdown, when a drawdown reaches the bottom, as after that your deal will go up and reach the highs. You will make a mistake if you “plunge” in the period when the account continues to drawdown. Therefore, Manager of PAMM account shall know the way to exit drawdown. Try to choose an account with interesting and diverse history of rises and falls. Managers of such accounts can go into risky deals, but at the same time they can earn good profit. Therefore, this strategy can bring the highest profit of investing in Forex.
Strategy №3 “at a snail’s gallop”
This strategy is similar to the one described above, as it also suggests to select the most profitable PAMM accounts and enter into the transaction at the time of drawdown. However, this strategy does not recommend to invest all your funds at once. According to this strategy you should track activity of your Manager and if you notice that the account has reached the bottom, you can invest some of the money.
If PAMM account continues drawdown, you can invest some more money and the sum this time should be slightly bigger.
This strategy is based on the idea that the deeper is a drawdown, the more chances of a reversal, which will trigger the rise to the highs, and to the higher profits. As in the previous strategy, it is important here that the Manager knows the ways out of the drawdown.
Strategy №4 “Everything and at once”
This strategy is designed for risky people who want to earn money quickly. You can choose young PAMM Managers, who try to attract new investors in order to increase return on their investments.
As a rule, in the first few months of their existence PAMM accounts make the highest profit.
Your task is to catch the right moment for making investment. If you are lucky to do it in the right moment, you will significantly increase your investment in the short period of time. However, you should always remember that “quick” money involves high risks. You bear a risk when you rely on a Manager with the slight experience in trading.
Whatever floats your boat
You can select what you like. There is no universal decision suitable for all. There are plenty of strategies offering various ways of investing in Forex. We have reviewed the most popular and the most profitable Forex strategies.
Good luck in making investments!
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The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.