The forex market has been known for a lot of investments as investors earn huge amount of money due to the huge returns and huge volume of volatility in the market. However, we must not ignore the fact that trading in a volatile market is very risky. A forex fund manager is the process of allowing a seasoned trader to manage your finances on gain and loss basis. The gains and losses are usually distributed through the software. The forex fund investor must be an experienced investor who understands the risks associated with the fund.
CHOOSING A RELIABLE FUND MANAGER
In making a choice, there are several factors to consider which must be adequately and thoroughly checked.
1. KNOWLEDGE AND EXTENSIVE EXPERIENCE:
For instance, hiring an employer, there are several factors you look out for, this is just the same as choosing a fund manager, you must be affirmative that the wealth of experience is there, this can be confirmed by checking how long the account being handled. This account must be at least 3-4 years, and then confirmation is made through the reliability of trading result because consistency positive performance over a period of 3-4 years shows the worth of the trader
2. TRADING PERIOD:
Live trades should be checked. If adequate information is not provided, a request for the result of past trades on myfxbook can be requested for, ignore the huge numbers and huge profit, what should be checked is the drawdown. The drawdown will give a clue about the level of risk to invest with the trader. Secondly, check the consistency over time. Those whose history shows huge profit but lacks consistency should be ignored.
3. AMOUNT OF INVESTORS:
The number of investors being managed under the fund manager is a positive pointer to the reliability. Obviously, if more investor trusts a particular fund manager, then he/she must have the adequate skills.
4. TOTAL EQUITY:
It is recommended to go with traders who trade at medium risk because those with large capital may take huge risk and vice versa.
This is basically the commission which is charged for the services offered, obviously if high success rate is recorded, and then high remuneration will be demanded. It is always advisable not to look at the commission rate but the proven track records and fulfils earlier mentioned.
6. THE RECOVERY FACTOR:
The recovery factor tends to analyze their strength and capabilities, that is how swift and fast they are able to recover after suffering a drawdown. The greater the recovery factor, the more reliable they can be.
7. STRONG TRADING PSYCHOLOGY:
A professional in the field must not be a gambler, he/she must be able to trade systematically rather than emotionally and must always emphasize on the rules and discipline.
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.