Short-term and long-term investments in PAMM

What is what?

So, what is the basic idea of Forex investments into PAMM accounts? First of all, they mean equity investment with the prospect of profit. That is, a person is ready to give away some of the funds today in order to receive a bigger amount of money tomorrow. The question is: how long is an investor prepared to wait before he/she receives profit. Not very patient investors expect dividends very quickly, those who have more patience and more experience are ready to wait longer. Therefore, in terms of time, we can subdivide investments into two types: short-term and long-term investments.

Different kind of investors 

Some of the beginners in the investment business in Forex believe that PAMM accounts will help them achieve everything and at an instant. Well, this can be understood. Theoretically, we all wish to receive more and yet more and soon. However, inexperienced investors not only wish to receive more, they expect profit. And they have the right to do it. Actually, there are two types of investments and each of them has its supporters. However, in order to find your own way in the complex world of finance you should learn more about this world and then answer a question:”what is the best option for me?” Obviously, both types of investments have its advantages and disadvantages. A lot will depend on which is the best for you.


Different kind of PAMM accounts managers 


In order to make successful investment into PAMM account you should evaluate the efficiency of the managers.


Each potential investor has access to:

  1. ratings
  2. trading history
  3. analytics
  4. full statistic about manager

this information help assess the efficiency of a particular manager of PAMM accounts. So, how can this information help determine what kind of investment is the best for a certain PAMM account, should it be a short-term or a long term investment? Of course no one will give you a definite answer; however, there are some criteria, which can help. The traders, who prefer risk and aggressive trading, are usually aimed at gaining profit quickly and they achieve the results faster. However, you cannot expect huge dividends from their PAMM accounts. As a rule, due to high risks, such managers receive profit quite often, but not on the regular basis, and the value of returns is usually not too high either.

Other types of traders usually use conservative approach, making well-considered and careful trading decisions. If you prefer long-term investments it is advisable to invest into PAMM accounts of such managers. And, changing a saying:  “Better an egg today than a hen tomorrow”, we can say that long-term investors will definitely catch their “hen”, while the managers of the short-term accounts, who try to “collect” many “eggs”, will unlikely earn big money. 

What kind of PAMM investments can bring more money?

Now, we have come to the most essential point: what is more profitable- short-term or long-term investments? As a well—known saying says: “Courses for horses”.  The investors have to choose between the variety of PAMM accounts managers. You are to choose, and if you are not interested in my opinion, do not continue reading this article.

Here is my opinion: it is more profitable to make long-term investments. Do you want me to come up with the arguments to support my opinion?

First of all, you can relax and do not monitor everyday performance of the PAMM manager, selected by you. You can devote your time to the things you find more appealing. After all, it is one of the attractions of making investments, is it not? 

Secondly, you can compare short-term investments with the dance on a volcano; at the same time, the predictability of the long-term investments is very high. Your task is just to wait for the profit, which you have planned to receive. 

Thirdly, after all, the concept of investment presupposes long-term perspective. Long-term PAMM investment actually, agrees with the general idea of professional investing and as a rule, complies with the investor’s expectations. 

And, finally, do you know a lot of wealthy investors who have earned their million making short-term investments?


My dear friends,

I wish you to make good decisions and successful investments! 


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.

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