myfirstmillion posted:A good manager has to invest his money on his PAMM. If you see at Alpari-forex.com, a manager has to start the account with his own money. You can chose a manager that invest more money on his managed account.
The only way for a manager to withdraw his capital is to close the PAMM at Alpari. I think that this is a proof that the manager is serious.
But a pamm manager can open a PAMM with only 500$ in it, i don't call this investing his own money alos he can withdraw the profits when ever he want to.
Also you never know how rich the PAMM manager is so you have no idea how much the personnal money he has in the account really represent for him for some peoples 10K$ represent a lot of money and for some others it doesn't represent much, also it depend how much of investors money he has, if the money he invested represent only few months of the commitions he get that's nothing. You can't juge a PAMM manager by how much money he has in his PAMM for example i've seen a PAMM manager at HotForex from china blowing up 1million$ of his money in few months then he opened an other PAMM with an other million and lost it in only few weeks, he had no investors, at least not thru the PAMM system maybe the money he invested was from investors that he collected outside the system.
You need to see at least 6months of history on real money showing positions sizes drawdown etc... and know what the strategie is, but so far i haven't found any traders that is really making money consistently and able to show his positions with trasparency and explain his strategie, even if he do it you still ahve to make sure the strategie make sense and trust that the manager will be able to trade the strategie without flaws consistently over time. Basically peoples who make more than 5-6%/months are just beguiners or scammers, 5-6% when compounding make you over 100%/years that's insane returns and make you millionaire in few years only. Trading is not about doubling an account in one months or 2, that doesn't make sense if few months latter you loose it all, tradind is long time investment, only the ones that make small returns (2-5%/month) consistenly over time stay in the 'game'.
I totally agree with you.
I'm working for an hedge funde for more than 10 years. I'm trying to start an alternative income from retail world but I think that it will be very difficult for the reason that you wrote.
I will manage my Master as the hedge fund that i trade. But if I won't reach a PAMM of 1M$ I will stop it at december 2015.
I can make 6% monthly with 30% performance fee:
I won't do this work for less. I've seen that many of the accounts are very low (10/50k). With such a balance is very difficult to find a real money manager.
My house keeper takes 2.000$....
if something works don't change it