Forex Managed accounts 101

A forex managed account is great investment vehicle anyone can have in their portfolio with a professional forex and commodity trader. Forex can be traded for 24 hours a day 5 days a week and you can either sell or buy in this market.Liquidity is extremely high up to $4 trillion plus and it is almost impossible to manipulate this market.

However,there are a lot of scammers trying to take advantage of investors who know nothing about the specifics of the market. They write up wonderful reviews, open up incredible forums and create outstanding programmes that can catch the eye of any potential investor.They will entice you with returns of 100% in 3 months or make 50% returns every week which feeds on your greed and your ambitions to becoming richer faster than our Member of Parliament. But for any wise investor, very few investments can make anyone rich overnight.Apart from robbing a bank or a jewelry store or something of that nature,the only way to becoming successful is by working hard and smart.That is the secret and the "Holy Grail" to success.And Forex trading is no exception.

To avoid investing with the wrong crowd, you should first and foremost try to learn  a little bit about your investment option. Let you account manager explain to you what you are getting into and what the benefits and draw downs are to this business.Let him/her show you their past performance to make you aware of the potential the business has.

Secondly, Never ever send money to someone's account or some company's account at any one time.This is the biggest mistake people make; that so and so is trading for me.You have no control over what the person or company is doing with your money and you have no one to blame once your money has been lost. You should instead work with your manager to open an account with the preferred broker, preferable an ECN regulated broker where you will have access to your money at all times.Only you can Withdraw or Deposit to your account and not your manager.The manager will only be allowed to trade on your behalf after you have signed a Limited Power of Attorney form that specifically authorizes him to do so.You have the ability to stop trading activities of your account at any time.

Finally, no one can guarantee you a certain profit percentage.The market is too volatile and risky that regardless of how many moon years you have been trading, you can still make losses.The bottom line in this business is to make your wins so much bigger than your losses to stay profitable.There is no investment in the world that does not make losses at one time or another and forex trading is no exception.Do not be fooled by amazing reviews on the net of how someone made a fortune and no longer goes to work or now lives in Lavington or Karen.That is a joke right there,Ignore it.

Forex trading is an investment like any other that has its ups and downs but with a good professional manager can be a consistence source of good profits to add to your portfolio.