Looking for a trader: a profitable business in the market
Looking for a Trader - sections with such ads are present in almost all forums and specialized sites. - the most liquid market in the world. In spite of the fact that risks on it are an order of magnitude greater than at classical investment, the reverse side of the medal is a high yield, which cannot be compared to income on bank deposits, dividends on securities and so on.
It is quite natural that many investors, who know about , but do not have the desire or ability to trade on their own, place ads looking for traders.
Looking for a trader - classic business model
Ads such as "Looking for a trader" are the realization of the classic "customer-executor" business model. In essence, we are dealing with trusteeship on the . The investor orders the service of trading on the foreign exchange market with certain conditions, and the trader, who performs the functions of the executor, undertakes to provide such service taking into account the conditions set.
Thus, the investor provides his money to the trader for trading, and the trader, in case of fulfillment of the agreed conditions, receives a certain commission. Simply put, the trader trades on the investor's money, for which he receives a percentage of earned profit.
Investor looking for a trader
As in any other business, the search for an executor, which in our case is a trader - is a very responsible thing and does not tolerate haste. Moreover, the size of investments, as a rule, is not the smallest, and before entrusting them to a complete stranger, it is necessary to carefully weigh the pros and cons.
As a rule, an investor posts his ad on the forum at in the "Looking for a trader" sectionwhere he describes his requirements to the trader. This includes the level of profitability, the maximum level of drawdown, the percentage of remuneration to the trader and so on.
The investor considers all proposals received and decides on the choice of a trader.
What an investor needs to know about when looking for a trader
The Russian-speaking segment, despite its huge size, is like a small town, where everyone knows each other through the second or third person. Read the forums, you can find information about almost every serious trader.
As a rule, a trader's seriousness is backed up by monitoring his trade on a real account. Whether it's reports from the myfxbook service or just provided by STATEMENTS - there are variations. The key point here is the phrase "real account". Reports of trading on demo accounts is an indicator of a novice trader without proper experience.
Remember that high profitability always comes with a high risk of losing money. The higher the profitability declared by the investor, the higher the risks. And not every trader will take money under such conditions. Put a priority on stability, not a high yield. With that it should be remembered that no profitability shown earlier is a hundred percent guarantee of receiving profit in the future.
Be sure to formalize your relationship with the trader legally. Whether it will be like an offer in the PAMM accounts, the contract of trust management, as in the management company or the fund, or in any other form - it is up to the investor.
Looking for a Trader - a wonderful opportunity for the modern investor to make his money work with full return. With the right approach in choosing a trader for trust management, the result can surpass even the boldest expectations, and investing in - a stable and profitable business.