Trading for an investor - how to minimize risk
The main task of any investment is to get income. And in order to increase my sources of income, as well as partially automate them, I transferred part of my funds to accounts for trading on the Forex currency market. Is it worth it for a novice investor and is it worth doing at all. That will be such an interesting post today. Read on.
Very often, an obvious and simple solution is swept away precisely in its simplicity. For some reason, many believe that everything should be much simpler. I was also in this number, so I share almost my own experience (as always on this blog). It sounds confusing, but now I will explain in more detail.
As an investor, for a long time I did not dare to start trading. Forex trading was for me something too far, complicated, super-risky and affordable for the elite. But still I took a chance. My first steps were a couple of accounts on which I installed trading advisors, and began to wait for the money to arrive. Yes, by the way, before opening an account with the forex broker weltrade, with whom I still work, I studied the topic of auto trading far and wide. It didn’t take much time, the main desire.
Today I realized one important thing about trading that I want to share.
You are either in trading or not. You can’t enter here, open any position, break the jackpot, and leave. Trading requires your time, your money and brains. If you are not ready to devote enough time to him, it is better to just invest money in other traders (investments in PAMM accounts). This also applies to auto trading - yes, robots trade accounts, but if you let them drift away - draining your account is just around the corner.
Should an investor go into trading
Not every investor will become a successful trader, and indeed, not everyone will want to become a trader. But there are tools that allow you to enter into trading without the need for independent trading. We can say that this is an investment with trading elements.
Investing in a pamm account. This tool has little relevance to trading, but it allows you to invest in successful agents / traders and receive income from forex trading in the Forex currency market. I opened my own pamm account, which is reflected in my investment portfolio, and the results of which I share every week in the reports. Here is the ToProfit Pamm Account Monitoring.
Copying trades of successful tradersCopy trading in MQL5. What is the essence of this MQL5 service, and why is it convenient for an investor and a novice trader. You select the account you like from the rating, click the copy button, and the trader’s transactions are automatically copied to your account.
What are the features. You need to open an account with a best forex broker, download and install a trading terminal, buy a vps server and install a trading terminal there. Top up the account, respectively, and then start copying trading signals of successful traders.
Copying signals - what it is and how it works
You can choose accounts for copying according to various parameters - from the drawdown value, to the reliability and aggressiveness of the trader. Copying deals is a paid service, but in comparison with pamm accounts, where you give part of all your income, here you pay a fixed price, the ability to copy, and all your profit.
Why trading to an investor
An online investor is someone who invests in high-risk tools. And in most cases, it risks almost the entire deposit. When copying transactions, you risk only part of the deposit, you can limit the risks, or stop trading if the risks and drawdowns are exceeded. You, as a trader, do not make independent transactions, but rely on experienced traders, and this is an advantage.
It turns out that you invest money by choosing an asset in the form of an account to copy and get income. For those who want to touch trading and begin to study this area, this beginning will be the best. And for the investor it will be an additional opportunity to invest money securely.