Hello readers! In the yard the night, and at this time I am drawn to write brutal materials! I do not know why I tell these chips usually hide them all. Perhaps the darkness outside the window at me is bad ... Let's start! How to choose a PAMM account, so that it makes a profit for a long time? How to avoid mistakes and do not invest in unprofitable projects? What you need to know to invest in the PAMM account benefits?
Investing - the coolest thing in the right hands! The magic of compound interest works wonders. Think for yourself: if you initially invest 100 thousand rubles under 20% per annum and will be reinvested each year, then 13 years will take one million rubles, which is 10 times more. If you do not believe me - take the calculator and calculate yourself!
What if each year to receive 40% or 50% on the money invested? Imagine what income you expect? (Or do not wait if you greedy!)
Investing in the PAMM account provides an opportunity to earn a very high rate of interest. The main thing - to realize this opportunity! What does it do? Where to invest? In whom?
How to choose a PAMM account for investment?
1. To begin, note the trading time manager, successful people peddling for years. If you liked the PAMM account, with a lifetime of about 3 months - not in a hurry, you should look a bit. If a trader is educated, he will not get anywhere. And if you merge, you say thank you, that is not invested.
2. Look at the amount of subsidence, if a trader pulls 90%, and then miraculously recover funds and earns more, then I do not advise to invest in it. Reconstitute with 90% of this simple luck that is not eternal.
3. The amount of own capital. Although not fully agree with this. I think it's worth keeping in mind, but pay special attention to is not necessary. Since the trader opened PAMM account with a high net worth, it is not obliged to trade well. Nobody knows how he got the money, maybe he does not know how to trade?
All that is written above - common sense. A similar garbage has on each site about investing. But it does not protects investors' money, they are made stupid investments and will continue (not all of course). This information is not enough to earn. Select any PAMM account you already can, but understand more than you show - decidedly not !!! This requires competent investor! What You Need to Know More?
For example, take the rating Alpari PAMM accounts:
7 cool chips that will revolutionize investing in PAMM accounts!
1. Yield shown previously manager will likely never such will not be. Yes, your eyes do not deceive you. The thing is that the yield chart is calculated using compound interest, that is, constantly reinvesting profits. Experienced investors know this chip, but the newcomers are often caught at it! Let's look at a real example.
Here is the schedule of return of one of the leading PAMM accounts. To control I have great respect, I consider it a professional.
how to select a PAMM account for investment
If you do not take into account my layout, the yield smooth, without big drawdowns, all type of top! Approximately 2 years of work (a point 1), the yield reached 500% (250% per year). Over the last year it has risen to 800%, it means more, plus 300%. However, is not it.
It should be considered, taking into account compound interest. How to do it? Let's calculate the real rate of return over the past year, from point 1 to point 2. For this purpose, 100%, we need to take the initial capital and has already accumulated profits. That is, the value of 500% and -100% will be the starting point, imagine that this is the start date of the life of the PAMM account. The distance between the 500% and -100% - 600 points. These 600 points, we believe 100%. During the last year of operation, the yield increased to 800%, which is 300 points more than 500. If the 600 points we took over 100%, 300 points is 50%. The real rate of return over the past year amounted to about 50% !!! But not 300%, as it seemed earlier.
2. Leverage. Remember that the amount of leverage depends on trade. The more transactions you make, the more they get the total amount (per month), the less leverage. C 1: 500 is reduced to 1:25. So do all the brokers, to provide a large credit for significant money no one will.
How does this affect the PAMM account? Successful manager with time attracts more and more money, thus increasing his average monthly turnover. So, leverage is gradually reduced. The farther away, the more! If before he could open the large volume of transactions, it is now no longer able to. Because of this, you have to change the strategy work, but still on the bottom line negatively affected.
Therefore, most of the developed PAMM accounts will not be able to last yield, the terms of trade for them quite different! Do not count on past interest!
3. there is a tab "used leverage" The monitoring of each PAMM account. Anyone paying attention to it? It is able to bring a lot of benefits!
For example, let's take a look at the graph of one of PAMM accounts.
how to choose a PAMM accounts
At first glance, good profitability, drawdowns are small, do not last long. Now click "used leverage" and see the following picture:
how to select a PAMM account for investment
The bottom graph - it yields, it has remained almost unchanged. A top graph in this figure - deposit loading. I noted the interesting moments of black dots indicate the maximum drawdown in each case accompanied by a maximum load deposit. See the figure. What does this mean? The fact that at the time of drawdown when the funds in the account are reduced, the trader even more increases the amount of items. This happens only during drawdowns. This is called the Martingale, a losing strategy that has been proven many times. I would never have invested their money in the account, although originally it looked good.
4. Invest in the loss. If you have correctly assessed the manager understand his trade and we are confident in further progress - wait for the drawdown to invest. Do not think that if there is a slump, the account will be merged. Drawdowns are inevitable even for experienced traders. Conversely, if the upward movement continues for a long time graph, it increases the probability of drawdown. For a long time it was not, so there will be soon. Most investors do the opposite. To invest money on the peaks and the yield goes into drawdown.
Here is an excellent example of a wrong action.
how to choose a PAMM accounts
The lower - yields a graph of the PAMM account, the top - the schedule change means.
You can note that since 2011, began a sharp increase in invested funds, it can be clearly seen. At that time, it was a nice graph, there was almost no subsidence in 2010! Growth funds lasted half of 2011, as the rise in yields. Most of the investment manager has received in this period.
The bottom line is that at the first serious loss almost all the investors out of the PAMM. They invested at the peak of profitability, and went into the loss. How much do they earn? Most likely, nothing. And the drawdown of 30% was in the early accounts of life, was foolish to hope that it will never happen again.
I believe it is more profitable to invest in the dips and peaks to go (if you really want to).
5. Avoid astronauts. Who are the astronauts? Traders who in a very short period of time, show a very high yield. This is not a professional, as you might think, and regular promotion. Just earn more interest, the PAMM account goes to the first places in various ratings, which attracts more investors. Promotion itself is very risky business, often fails. Here is a good example of the astronaut:
how to choose a PAMM accounts
Total yield for 4 months more than 4000%. Just a fairy tale!
6. Review the description of the control. Try to understand how traders trade. Find it on the forum thread, write it to the post office and ask for details about all the nuances. If the trader does not go to the contact, he speaks of the "secrecy" of its working methods or do not understand what you want from it - think again! Usually, experienced traders can tell you briefly about their working methods, as are aware that serious investors will not invest their money in it is not clear whom.
7. Balance and money. The monitoring schedule is no balance, there is only a graph of funds (graph). It is a pity to me personally it would be useful! What for?
Drawdown in reality may not be as big as it seems. For example, suppose that a trader opens 3 trades, they all start to make a profit! Score increases by 20%! Can we assume that 20% profit? No, because the transaction is not completed, and it is unknown what will be the final result. But on the graph (which is based on current assets, that is, given the unfinished transaction) have shown + 20%. What if these transactions will close to breakeven? Essentially, the trader has not received any losing trades, and the graph will be 20% drawdown! Let's look at an example:
how to select a PAMM account for investment
Black line marks possible level of balance (this is just an example). Nobody knows what was the balance at the moment. Maybe it is a sharp peak yield profits for uncompleted transactions. Then the real drawdown, which is still continuing, much smaller than it looks in the picture above.
To properly evaluate the trader's work, write to him and ask about specific situations. Otherwise, you may not notice successful managers.
At the end of my chips, I think that this information is useful to you, as it does not immediately get to realize.
By the way, interviewed PAMM traders, turned out very interesting, you can read for understanding the investment on the part of the trader. Etointervyu Vitaly Shlykov, and this interview with Alexander Sarychev.
How to choose a PAMM account? Important additions.
I'll tell you a little more useful. Even if you pick a good PAMM account, do not rush to invest all the money in it. Diversification - the key to the success of the investor. To gnaw their own elbows at each drawdown trader, select 10 control and share capital between them. This will reduce the risk and the dependence on a single trader.
A good tool for automatic investment of a few managers at once - a portfolio of PAMM accounts.
Now the psychological moment - do not expect immediate results. Patience is the second name of the investor. Investing - long-term business. By the way, so it's best to invest only available means that you do not need in the near future.
Investing is much like with trading. A professional investor has to be a certain algorithm investment plan. You have to determine in advance when invest money, under no circumstances will withdraw or add.
Look at the rating on the reverse side, go to the last page, and open several PAMM accounts. At first you only see the successful traders, it seems that all earn. But this is not the case. Look merged managers, some of which attracted a good investment. So do not think that in any case you will earn. Your choice depends on many things, make it deliberate.
And now a bonus for my readers! Make investments with Alpari more profitable! Register a new personal account, invest in the PAMM account and receive an additional bonus every month. The bonus is calculated on the total volume of transactions committed by your control. For each item, you get $ 2.25.
For example, you invested $ 10,000 in the 12 traders. The total amount of all transactions of Governors for the month amounted to 100 lots. Then to your account in your account goes further $ 225.
What if each year to receive 40% or 50% on the money invested? Imagine what income you expect? (Or do not wait if you greedy!)
Investing in the PAMM account provides an opportunity to earn a very high rate of interest. The main thing - to realize this opportunity! What does it do? Where to invest? In whom?
How to choose a PAMM account for investment?
1. To begin, note the trading time manager, successful people peddling for years. If you liked the PAMM account, with a lifetime of about 3 months - not in a hurry, you should look a bit. If a trader is educated, he will not get anywhere. And if you merge, you say thank you, that is not invested.
2. Look at the amount of subsidence, if a trader pulls 90%, and then miraculously recover funds and earns more, then I do not advise to invest in it. Reconstitute with 90% of this simple luck that is not eternal.
3. The amount of own capital. Although not fully agree with this. I think it's worth keeping in mind, but pay special attention to is not necessary. Since the trader opened PAMM account with a high net worth, it is not obliged to trade well. Nobody knows how he got the money, maybe he does not know how to trade?
All that is written above - common sense. A similar garbage has on each site about investing. But it does not protects investors' money, they are made stupid investments and will continue (not all of course). This information is not enough to earn. Select any PAMM account you already can, but understand more than you show - decidedly not !!! This requires competent investor! What You Need to Know More?
For example, take the rating Alpari PAMM accounts:
7 cool chips that will revolutionize investing in PAMM accounts!
1. Yield shown previously manager will likely never such will not be. Yes, your eyes do not deceive you. The thing is that the yield chart is calculated using compound interest, that is, constantly reinvesting profits. Experienced investors know this chip, but the newcomers are often caught at it! Let's look at a real example.
Here is the schedule of return of one of the leading PAMM accounts. To control I have great respect, I consider it a professional.
how to select a PAMM account for investment
If you do not take into account my layout, the yield smooth, without big drawdowns, all type of top! Approximately 2 years of work (a point 1), the yield reached 500% (250% per year). Over the last year it has risen to 800%, it means more, plus 300%. However, is not it.
It should be considered, taking into account compound interest. How to do it? Let's calculate the real rate of return over the past year, from point 1 to point 2. For this purpose, 100%, we need to take the initial capital and has already accumulated profits. That is, the value of 500% and -100% will be the starting point, imagine that this is the start date of the life of the PAMM account. The distance between the 500% and -100% - 600 points. These 600 points, we believe 100%. During the last year of operation, the yield increased to 800%, which is 300 points more than 500. If the 600 points we took over 100%, 300 points is 50%. The real rate of return over the past year amounted to about 50% !!! But not 300%, as it seemed earlier.
2. Leverage. Remember that the amount of leverage depends on trade. The more transactions you make, the more they get the total amount (per month), the less leverage. C 1: 500 is reduced to 1:25. So do all the brokers, to provide a large credit for significant money no one will.
How does this affect the PAMM account? Successful manager with time attracts more and more money, thus increasing his average monthly turnover. So, leverage is gradually reduced. The farther away, the more! If before he could open the large volume of transactions, it is now no longer able to. Because of this, you have to change the strategy work, but still on the bottom line negatively affected.
Therefore, most of the developed PAMM accounts will not be able to last yield, the terms of trade for them quite different! Do not count on past interest!
3. there is a tab "used leverage" The monitoring of each PAMM account. Anyone paying attention to it? It is able to bring a lot of benefits!
For example, let's take a look at the graph of one of PAMM accounts.
how to choose a PAMM accounts
At first glance, good profitability, drawdowns are small, do not last long. Now click "used leverage" and see the following picture:
how to select a PAMM account for investment
The bottom graph - it yields, it has remained almost unchanged. A top graph in this figure - deposit loading. I noted the interesting moments of black dots indicate the maximum drawdown in each case accompanied by a maximum load deposit. See the figure. What does this mean? The fact that at the time of drawdown when the funds in the account are reduced, the trader even more increases the amount of items. This happens only during drawdowns. This is called the Martingale, a losing strategy that has been proven many times. I would never have invested their money in the account, although originally it looked good.
4. Invest in the loss. If you have correctly assessed the manager understand his trade and we are confident in further progress - wait for the drawdown to invest. Do not think that if there is a slump, the account will be merged. Drawdowns are inevitable even for experienced traders. Conversely, if the upward movement continues for a long time graph, it increases the probability of drawdown. For a long time it was not, so there will be soon. Most investors do the opposite. To invest money on the peaks and the yield goes into drawdown.
Here is an excellent example of a wrong action.
how to choose a PAMM accounts
The lower - yields a graph of the PAMM account, the top - the schedule change means.
You can note that since 2011, began a sharp increase in invested funds, it can be clearly seen. At that time, it was a nice graph, there was almost no subsidence in 2010! Growth funds lasted half of 2011, as the rise in yields. Most of the investment manager has received in this period.
The bottom line is that at the first serious loss almost all the investors out of the PAMM. They invested at the peak of profitability, and went into the loss. How much do they earn? Most likely, nothing. And the drawdown of 30% was in the early accounts of life, was foolish to hope that it will never happen again.
I believe it is more profitable to invest in the dips and peaks to go (if you really want to).
5. Avoid astronauts. Who are the astronauts? Traders who in a very short period of time, show a very high yield. This is not a professional, as you might think, and regular promotion. Just earn more interest, the PAMM account goes to the first places in various ratings, which attracts more investors. Promotion itself is very risky business, often fails. Here is a good example of the astronaut:
how to choose a PAMM accounts
Total yield for 4 months more than 4000%. Just a fairy tale!
6. Review the description of the control. Try to understand how traders trade. Find it on the forum thread, write it to the post office and ask for details about all the nuances. If the trader does not go to the contact, he speaks of the "secrecy" of its working methods or do not understand what you want from it - think again! Usually, experienced traders can tell you briefly about their working methods, as are aware that serious investors will not invest their money in it is not clear whom.
7. Balance and money. The monitoring schedule is no balance, there is only a graph of funds (graph). It is a pity to me personally it would be useful! What for?
Drawdown in reality may not be as big as it seems. For example, suppose that a trader opens 3 trades, they all start to make a profit! Score increases by 20%! Can we assume that 20% profit? No, because the transaction is not completed, and it is unknown what will be the final result. But on the graph (which is based on current assets, that is, given the unfinished transaction) have shown + 20%. What if these transactions will close to breakeven? Essentially, the trader has not received any losing trades, and the graph will be 20% drawdown! Let's look at an example:
how to select a PAMM account for investment
Black line marks possible level of balance (this is just an example). Nobody knows what was the balance at the moment. Maybe it is a sharp peak yield profits for uncompleted transactions. Then the real drawdown, which is still continuing, much smaller than it looks in the picture above.
To properly evaluate the trader's work, write to him and ask about specific situations. Otherwise, you may not notice successful managers.
At the end of my chips, I think that this information is useful to you, as it does not immediately get to realize.
By the way, interviewed PAMM traders, turned out very interesting, you can read for understanding the investment on the part of the trader. Etointervyu Vitaly Shlykov, and this interview with Alexander Sarychev.
How to choose a PAMM account? Important additions.
I'll tell you a little more useful. Even if you pick a good PAMM account, do not rush to invest all the money in it. Diversification - the key to the success of the investor. To gnaw their own elbows at each drawdown trader, select 10 control and share capital between them. This will reduce the risk and the dependence on a single trader.
A good tool for automatic investment of a few managers at once - a portfolio of PAMM accounts.
Now the psychological moment - do not expect immediate results. Patience is the second name of the investor. Investing - long-term business. By the way, so it's best to invest only available means that you do not need in the near future.
Investing is much like with trading. A professional investor has to be a certain algorithm investment plan. You have to determine in advance when invest money, under no circumstances will withdraw or add.
Look at the rating on the reverse side, go to the last page, and open several PAMM accounts. At first you only see the successful traders, it seems that all earn. But this is not the case. Look merged managers, some of which attracted a good investment. So do not think that in any case you will earn. Your choice depends on many things, make it deliberate.
And now a bonus for my readers! Make investments with Alpari more profitable! Register a new personal account, invest in the PAMM account and receive an additional bonus every month. The bonus is calculated on the total volume of transactions committed by your control. For each item, you get $ 2.25.
For example, you invested $ 10,000 in the 12 traders. The total amount of all transactions of Governors for the month amounted to 100 lots. Then to your account in your account goes further $ 225.
