Did they pay you profit share trustfully at the end of the agreed period?What protection majors did you as a trader use/implement in the agreement and if you had bad experiences how did they trick and scam you?Kindly elaborate.(A lot of people/strangers ask for you to run portfolios for them but most of them just close their accounts and change their contact details and never pay you your share of the profits and they disapppear.Did you ever experience this and how did you solve it and how can advise a fellow trader to go about such agreements??
Lets look at it from the size of transaction perspective. 1. The client gives a little money and the manager takes the little money. we can assume the clients cant pay a lawyer and the manager isnt a proper trader because real traders wouldnt go into all this trouble of working with someone for pennies. So there you are, you can assume how it ends. 2. The client gives a sizable amount of money and the manager accepts it. Chances are in this case you can afford to spend a few extra dollars to sign a proper contract with a lawyer and do due diligence on the other person. If anything goes wrong the other party is tracable and the contract conditions can be enforced. Also you have higher chances of the “account manager” being an honest business partner, considering he has agreed to an official contract and provided his details.
Consider the legal risk that is associated for managing those possible clients funds. Do you have all of your licenses and regulatory certificates in place? Are you fully certified? Are you insured? Are you an independent representative for a broker? What guarantees are you offering in your contracts for asset protections? What is the legal ramification if you lose all of your client investment capital? I could go on for quite some time about the things you need to consider.
Also is the question of 'WHY' do you need to manage those funds in the first place? Are you looking to increase your income levels? If so, 'WHY' do you actually need the outside capital. If you are truly a talented and professional level trader, then even with a very small investment of perhaps $1000.00 USD of your own funds, could easily grow into a fairly substantial sum in a very reasonable amount of time.
It is only my opinion of course, but it is better to simply avoid managing others funds, as well as avoiding having others manage those funds for you.
If a person is going to invest their funds, it is generally best for them to not rely on the skills of total strangers to do it for them.
Learning to properly trade isn't that difficult. it really isn't. There are no 'elite secrets' that must be paid for, in order to use them. The markets can only do one of three things.
1) Currency pair moves up. (BUY) 2) Currency pair isn't doing much of anything. (Don't do anything) 3) Currency pair moves down. (SELL)
Analyze your multiple time frames and make a small entry trade, if the trade is good, then stack additional tickets into the basket, using the previously opened ticket as coverage for the new tickets. Set a reasonable stoploss, move the Stoploss to breakeven when possible, and use a reasonable and realistic take profit target.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
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Past performance is not indicative of future results.