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This is a Forex Guest Post written by Johnny Grab, an analyst and a professional trader:
Are you an experienced trader and looking to manage Forex accounts? Managing other people's accounts carries some obvious benefits. A large Forex portfolio allows you to generate high commissions and profits while not risking your own money. But there are also some other aspects you must take into consideration. Before you start I suggest you consider the following tips which are based on several years of experience as a Forex money manager. 1. Legal Aspect - Find out which rules apply on your based country. Each country may has its own regulation, and at some places you will need a certain permission to manage other people's money. Make sure to meet the requirements, whether it's a some sort of investments consulting license, or other type of certificate that allows you to manage other's funds. 2. Trading Method - Decide whether you like to trade manually or using an Expert Advisor. Experience shows that most Forex clients do not like the idea of having an EA trading for them. They prefer to trust a skillful trader who can monitor the platform constantly. If you do decide however to use an automated system, let them know that you are going to strictly monitor the algorithm performance and make adjustments if needed. 3. Risk level Consider extremely low risk trading. If you regularly use a 20-30 leverage which is considered to be high, try to use a leverage of about 5 times lower on your clients money. The Foreign Exchange market can be unpredictable and you can never know what will go wrong. Remember to you are playing a long run game. 4. Treat it as your own money - A big mental mistake would be to think of the invested money as virtual. Even tough you don't really risk your own funds, the people who choose to trust you value their money just as much you do. Keep that in mind. Consider the funds on your Forex portfolio as yours. Be a responsible trader and manager. Believe me, it will pays once you'll gain the trust of your clients for the long run. 5. Transparency - Never hide anything from your clients. Even if you've made some mistakes and lost money reflect them what's going on. Your clients are not stupid. We all human and it's likely that they will understand it and they might appreciate it and trust you even more. In any case, you will cause a much greater damage once your clients find out you hide important information from them. |
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