Investing correctly in PAMMs

Let's take a look at the basic rules to follow when investing personal capital in PAMM accounts. The following rules will help you to create investment portfolio, significantly minimizing possible losses and maximizing profits.

If you are going to put your personal capital in trust management, invest in a PAMM-account, then I strongly recommend that you study all the points:

1. Never invest the "last" money. Especially if you are just starting to master investments, you should do it exactly as much as you would not be sorry to lose if you made a loss-making investment because of little experience. Nowadays it is possible to invest small amounts, which helps to understand all the issues using real examples.

2. Try not to invest everything in one manager. It would be more correct to distribute the investment capital among several managers.

3. When selecting managers Pay attention to your trading style. Divide investments between aggressively trading managers and less aggressive ones. By doing so, you will protect your capital from losses and receive a good percentage from aggressive managers.

4. Choose proven brokersThe company has been offering its services on the investment market for a long time.

5. To increase profits and stability, continue regularly invest in new managersNot forgetting, of course, the proven ones.

6. Before investing, it is worth studying the reviews of the place of investment. All the necessary information can be obtained from the discussions on the forum of the broker.

7. With each new investment, it will be useful to examine ratings managers, thereby forming the most profitable investment portfolio.

8. When forming a portfolio, it is worth paying attention to the fact that, how the manager trades, manually, or with the help of advisors. It is worth to take into account that the Expert Advisor has no emotions and trades strictly according to the algorithm. But do not forget that even manually, with a well chosen strategy, managers show very good results.

9. Before investing large sums of money, First form a profitable investment portfolio by investing small amounts. In this case, you will save your capital from possible losses associated with the selection of managers, but after the formation of the portfolio, you will be able to make the main funds and receive a stable and high income from them.

10. You should never panic when there are large drawdowns on the account, and you should not try to fix anything on your own. If you have already decided to entrust part of your capital into management, you should not interfere with the manager. Especially with extremely aggressive traders, significant drawdowns happen quite often before a significant rise.

 I hope all of the above rules will help you in forming your investment portfolio. The sooner you start investing, the sooner you will start getting stable and constantly increasing profits. The main thing is to constantly increase the volume of investments, both in terms of money and the number of managers.

With the practical experience of investing in PAMM accounts you can read in this article:
Investing in PAMM accounts in practice: creating a portfolio on 500$