Investing
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Hello, dear investors. At the beginning of the summer we started with you the process of creating a trading portfolio for 500$ in the service of PAMM accounts of TenkoFX. If you remember, we invested the specified amount in the four most successful, in our opinion, traders and began to wait for the result in 4 trading weeks. The first couple of weeks everything went quite successfully. We earned profit on the total amount of all PAMM accounts, so we decided for some time to stop watching so closely our investments and go to the personal cabinet only in the middle of July to get new data before writing the article and to make some changes in accordance with the new PAMM accounts appeared. Unfortunately, everything went...
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So, we have dealt with the main topics, which should at least slightly open for you the process of investing in PAMM accounts. Recent events with the most active PAMM platforms, of course, somewhat damaged the overall impression of the service, however, let's not think badly of all companies and still continue our conversation about this method of investing in . PAMM investing in practice Starting with this article we will move on to one of the most interesting stages in the study of PAMM, namely, we will take the service by fight - start trial investing, using different strategies. To begin with we have 500$ and desire to get...
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For those who closely follow my column on investing in PAMM, I will not open America, saying that it is a very curious and profitable experience for those who do not want or cannot trade on their own on , but do not mind a good profit from investing free funds. In this article, I would like to summarize our master class, giving 10 simple tips for PAMM investors for profitable and smart investing in PAMM on . 1. Choose thoroughly the company with which you plan to cooperate This is my most important advice to date. About why it is profitable for brokers to keep PAMM service I wrote in details in 91...
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A personal trader is another type of classic customer-executor business model used in the foreign exchange market. In last week's "Looking for a Trader" article, we talked about how investors look for traders to place their investments in . However, investing in the foreign exchange market is a two-way process, involving not only the investor, but also the trader. And if investor invests his own money, trader invests his own knowledge, skills and experience in trading on the currency market. Attracting investments to develop own business is a common practice, that is why every reasonable trader sooner or later comes to the idea of attracting investors' money to trade. What changes when you go from...
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February was marked by another stock exchange scandal: a large number of complaints from investors and PAMM managers regarding the service and payments by Pantheon-Finance provoked a conflict with the founder of this type of trust management on the market, the broker Alpari. The public not very attractive disputes between the two companies, most probably aimed at advertising their own services, attracted the attention of the regulator - the Russian Federal Service for Financial Markets, which put Pantheon-Finance in the "black list", suddenly seeing in its actions signs of a pyramid, and together with him there also defined the partner company - broker Forex Trend, indicating its unscrupulous business. So, the winter ends with another "war", but we'll discuss with you why...
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In the next article of the master class "PAMM-accounts and investments on" we will discuss with you an important question - what is the optimal amount for investment in PAMM on . We have already gone quite deep into the issues of modern asset management at , we have studied how to choose a trading account, how to choose a company for cooperation, assess the risks, etc. Now we can go on to the process of investment and we should start with your desires and opportunities. To invest today in one or several PAMM-accounts in the foreign exchange market is possible literally in a few minutes. Account opening at the broker became very simple process, it is also possible to deposit it through electronic payment systems, which takes very little time...
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We continue to study the processes of trust management on . In the previous articles of this series we have considered in details the principles of PAMM accounts and PAMM platforms, learned about the nuances of working with them. However, this is not the end of the types of trust management services at the exchange market. There is another type of automated investing offered by some brokers, called LAMM. Let's discuss the difference between these two services and try to determine whether it is more profitable to invest in PAMM or LAMM. Other articles of the master class "PAMM-accounts and investments on " Investing in PAMM: where to start an investor? PAMM-account as an effective investment tool PAMM-portfolios - a financial tool with diversification of risks PAMM account offer - a modern investment tool...
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An important factor allowing the PAMM investor to choose the right PAMM manager is a satisfactory service agreement or, as is true for most modern PAMM-platforms - the PAMM account offer. The offer in this case is a set of basic conditions on which the trustee takes the funds in his investment account. Investing money in the chosen PAMM-account, the investor automatically accepts all conditions of such an offer. Therefore, to fully understand what you finally agree with, let's analyze in detail the work of this contract for trust management. Other articles of the master class "PAMM-accounts and investments on " Investing in PAMM: where to begin an investor? PAMM-account as an effective investment tool PAMM-portfolios - a financial tool with...
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We continue to examine the methods we began in previous issues for building a profitable investment portfolio. In the 88th issue of ForTrader.org we will substantiate the construction of an optimal investment portfolio in the foreign exchange market using the Markowitz model. It should be said that this method has long been used by traders, but has never been applied to . Let's see what results we will be able to achieve. To build an optimal investment portfolio, we will take the following emerging currencies: the Indian rupee, the Chinese yuan, the Brazilian real and the Mexican peso, all quoted inversely to the U.S. dollar. Notations: Rupees/USD - the value of one Indian rupee in U.S. dollars, Yuan/USD - the value of one Chinese yuan in dollars...
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You have invested money in stocks. On your own or through mutual funds. Everyone can have a different amount, but every investor, regardless of the amount invested, can panic when the market goes the wrong way. The investor waits for the market to roll back, a day waits, two days, a week, but the market slowly but surely begins to fall. It seems that a "bearish" trend has begun... What to do at this moment? What to do in such a case? Sell everything or wait out losses on investments? Determine your investment objectives BEFORE you make a trade You should realize that you may have made a mistake before you bought the stock. Before you buy, it is advisable to formulate your investment...
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Thinking about a decent future, many people do not even think about the fact that it is unlikely to be possible without proper financial planning. Some, in the old way, pin their hopes on the fact that the state will provide them with a decent pension, and someone, like an ostrich, hides his head in the sand, trying not to think about it and living only for today. Nevertheless, in conditions of unstable economic situation and having already had the example of freezing of pension savings by the state, the question of independent provision of their financial future is becoming more and more urgent. One of the ways to passive income is investing in PAMM-accounts, which cannot do without a clear plan. Only the presence of a competent investment plan...
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Not all investors who decided to invest in PAMM-accounts know that in order to get the income it is important not only to properly approach the choice of a broker and manager of the PAMM-account, but also to the choice of the optimal time for investment. In the process of monitoring of PAMM-accounts, it is unlikely to find an account manager, the graph of the profitability of which will be exclusively ascending over a long enough period of time. So how to choose the right time to invest in PAMM-accounts? When NOT to invest: assess the profitability of the PAMM account First of all, you need to evaluate the history of trading operations of the PAMM Account Manager. The most optimal time for investing in PAMM can be determined by the peak on the profitability chart. For example, take two PAMM-accounts: with...
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Forming an optimal investment portfolio on the Russian stock market. To evaluate the attractiveness of a financial asset, investors use classical fundamental analysis and resort to technical analysis to determine the best time to enter and exit the market. To build an optimal investment portfolio for the Russian stock market let's consider the CAPM (Capital Assets Price Model), proposed by W. Sharpe in the 60s of the 20th century. This model allows you to determine the future return of a security through a linear regression equation: Making a CAPM Model for an Investment Portfolio The beta coefficient of a stock is a measure of the market risk of a stock, showing the variability of the stock's return to the market return in...
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So, you have free funds for investment or profitability of independent trading stopped satisfying you, and you decided to use the results of managing traders, investing in a PAMM account at . PAMM investments - an excellent decision, because the profitability of asset management can significantly exceed the interest from passive investments (for example, from the deposit in the bank) and give even more than 100% per annum, but do not forget that the higher the income, the higher the risks. Making a decision about investing in PAMM All that is connected with trading and speculation requires a considered and serious approach, because high profits can often be replaced by losses. No one is insured from this...
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When investing in financial assets, the return will directly depend on the level of risk the investor takes. Naturally, the greatest losses can be obtained when trading high-yielding assets. Managers of PAMM-accounts show investors a ready method of placing free funds, which brings tangible practical results and is more stable. One of the best options is a ready-made portfolio of PAMM-accounts. Variants of the formation of a PAMM-portfolio If we consider portfolios of PAMM-accounts as a financial tool, they can be referred to the strategic method of making a profit from investments. A ready-made portfolio can be formed in two ways: By a broker providing PAMM investing services. The investor himself/herself having already gained PAMM-investing skills. At formation of PAMM-portfolios experts...
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Investing in PAMM-accounts is gaining more and more popularity nowadays. However, choosing the right PAMM platform for investment is half the battle. The greater the profit, the greater the risks, so it is very important to diversify risks by dividing your capital among the selected PAMM-accounts. Do not strive for super-profitable Some investors have a rather frivolous attitude to investing, burning desire to maximize their profits every month, often unnecessarily risking and forgetting the main rule of PAMM-Investing: it is good if you manage to get a small profit, and very good when you can earn a lot of money. It is very important to have patience and not to strive for super profits. Usually, beginners, in the pursuit of profitability lose their money, and the patient investors earn a lot...
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In the previous article we have already considered one of the tools to assess the effectiveness of strategies, assets and PAMM-accounts - the Sharpe Ratio. Today we will talk about the next tool to estimate strategy profitability - the Kalmar Ratio. Drawdown and its types There are no 100% successful traders. Everyone, from a beginner to a professional, knows this. Every trader suffers losses from time to time. However, if money management is effective, losses are compensated after a certain period of time. To understand the essence of the Kalmar Ratio, it is first necessary to understand what is behind the term "drawdown". Drawdown is a loss or loss on a deposit opened for trading on exchanges. Most often the value...
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The Sharpe Ratio is one of the most common indicators in the foreign exchange market, which can be used to determine the effectiveness of both an individual trading strategy and an investment portfolio. Universal evaluation of trading strategies is usually considered to be the ratio of income from trading operations performed within the strategy to the risks taken by the trader within the same strategy. The Sharpe ratio is an expression of this ratio. Accordingly, the higher it is, the more effective the strategy is. The Sharpe Ratio is calculated using the formula: At first sight, the formula seems quite complicated, but in practice it is much easier and clearer. The numerator of the formula is the average trading income for a certain period. At the same time it is worth...
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The Stock Market Debate Why Invest? Each of us has thought about this question more than once. The reasons that make us think about investments can be very different: some people are not satisfied with the profitability of bank deposits, others want to achieve financial independence with the help of investment, someone wants to ensure a decent life in retirement. In order to realize your goal, you need to solve several problems, which we will talk about in more detail. You may also be interested in The role of monetary policy in the Forex market What kind of analysis is better to use in trading? Scalping for forecasts: bulls vs bears Metatrader 4 vs Metatrader 5 Deciding on investments First,...
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Today, all sorts of PAMM-accounts are very popular, a service that is offered by a large number of brokers. Newcomers to trading liked such innovations. To make money in the market one did not have to understand and penetrate into what was going on. Learning to trade became unnecessary, it was enough to choose a trader you liked with good yield. This is where many first-time investors face the question - how to choose a management account that guarantees safety of funds and a stable positive dynamics of profitability of your investments? That is what we will devote this article to. Articles about the PAMM-accounts PAMM-accounts: investing for everyone! The correct investment in the PAMM PAMM-system in Forex: the economic ...
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