I Found the FOREX Holy Grail...Do You Want It?
Sound familiar? Well, it should. Every time you read about a managed fund, or FOREX trading system, this is exactly what your are buying into. Obviously, you would never give your money to a fund if they can't provide consistent profits, and in most cases a "detailed" view of historical results.
O.k. I am getting ahead of myself. Let me take a step back and explain the question I am trying to answer.
Who should I let manage my account?
To me, there is a very simple answer to this question. YOU SHOULD MANAGE YOUR ACCOUNT. No other individual in this world understands your strengths, weaknesses, and tolerances better than you.
Yet there seems to be a never ending growth of funds and/or trading systems available online. Every one of them, of course, show substantial profits in the past. The question, then, is this.
Why are they sharing this great fortune with us? Why not just invest more of their own money, which they have just recently earned, and increase their profits?
There is a relatively limitless amount of money available in the FOREX. Why would someone want to earn 25% of your profit as a management fee instead of 100% of theirs. Because both of those things can not happen at the same time.
Every FOREX broker offers guaranteed fills on your orders under normal market conditions. This means that a $1 order is treated the same as a $1,000,000 order (whatever the maximum is with your FOREX broker). So, as long as your trade is accurate, you will have no problem getting as much currency as you like.
So what does that mean? Well, every FOREX broker has a maximum size order for which you are guaranteed your fill. This is important to understand for a very simple reason.
If the fund manager is only guaranteed his fill for $1,000,000, why wouldn't he want to capture maximum profit on his entire alloted amount.
In fairness, I would understand if he didn't have the capital to invest, but then I wouldn't trust the claims of his previous successes.
With a consistently successful trading strategy, and a conservative compounding strategy; you could turn a $5,000 account into a $1,000,000 account in just over 1 year. Let me explain before you all go running to open a FOREX Trading Account and lose all your money.
By investing 10% of your account on a daily basis, and averaging 20 pips/day in profit your account would increase by 2% on a daily basis. For those of you familiar with compounding, you understand how this can lead to such a major growth in your account.
So, here is another obvious question. If the fund has been averaging such astounding results over the past year, why can't they invest enough money to reach their limit? And, if they can, why aren't they?
Here is the answer to all of the questions. If they were that good, you would never know about them. It's just that simple. The greatest traders are growing their accounts and reaching their limit day after day.
I promise you this - they are not using anyone else's trading strategy, they are using their own. That's right, to become a truly great FOREX trader, you have to learn what works best for you, not someone else.
The most efficient way to reach the pinnacle of your trading skills is through an elite Forex trading course.
Are you still thinking about letting someone else handle your trading for you?
Here is one more reason for skepticism. Many spreads charge you a per trade transaction. This is an absolute no no. In this arrangement, they are guaranteed to make money on every trade. You, on the other hand are not. Avoid dealings with anyone who will make money on your losses.
Take your future in your own hands. Learn to trade the forex markets on your own.
Eddie is the Head Instructor at Foreign Exchange University. He has developed an Elite Forex Trading Course. Learn about the "Trading In Black And White Forex Trading Course".