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Friday, January 1, 2010

5 Things to Consider When Investing In Managed Forex

By Brendan Wilson

When selecting potential forex investment opportunities there are many things to consider. Here are five things that we consider should be uppermost in the minds of potential investors in managed forex products. This is by no means a comprehensive list but is a sound basis from which to build a successful Managed Forex portfolio.

1) Control of Your Funds

Without a doubt the one key factor in sourcing a managed forex account is to make certain that you have control over your funds at all times. That is the ability to revoke the ability of the trader to actively trade your account and also to withdrawal your funds from the broker at any time. Any other arrangement leaves your account open to abuse, fraud or general trader negligence. There has been many managed forex scams in recent times where funds have been fraudulently misappropriated leaving investors with little or nothing in their account. Make sure that before you send funds you are provided with an LPOA or "Limited Power of Attorney" form and that any funds you send are directed to the account of the broker, who is authorized to receive client deposits.

2) Historical Performance

Obivuously there is a huge advantage in being able to see a managed forex account traders historical performance figures. They also need to be verifiable figures, in the form of original statements. A spreadsheet of numbers or a table on a website doesn't constitute verifiable figures, no matter what the trader or company does to try and back up their claimed performance figures.

3) Good Money Management

Any professional forex trader will vouch for the fact that the most often overlooked factor for amateur traders is Money Management. the simple fact of the matter is that no trading strategy is complete without sound money management. Even a mediocre trading system can be profitable with the addition of sound money management principles. To apply sound money management takes considerable discipline and focus, attributes that in reality most traders simply lack. A managed account trader must possess these attributes to be a successful trader.

4) The Broker

Another important fact to consider when choosing a managed forex account is which broker they use to execute their trades. Do they offer tight spreads and fair trade execution and do they process deposit and withdrawal requests in a timely fashion? A bad broker can really ruin your whole managed account experience. Often I have had to deal with brokers who take weeks to process your withdrawal requests and can also take weeks to put your funds into trade. This can end up costing you thousands of dollars and months of wasted opportunities. Sometimes it is bureaucratic incompetence while in other cases it may well be something more sinister, all the same it is best to study up on prospective brokers and see if they have a good bad or indifferent reputation amongst other traders.

5) Low Past Draw Down Figures

Draw Down is a fact of life when it comes to forex trading, but having said that it is also necessary to figure out your appetite for risk and how much draw down you are prepared to tolerate. Look at the historical draw down figures that the provider has reached and then decide if you are comfortable with that figure. I would suggest as a ball park figure of 30%. If you aren't comfortable with it, move on. Remember it is your own hard earned money so do your due diligence on the trading history and ensure that it is compatible with your own appetite for risk. - 23217

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Advice On Making African Investments

By Jay Berg

Africa has always been viewed as a 'basket case' in the eyes of the investment world and never seen as a particularly likely investment opportunity. However, in recent times, markets in Africa have seen some significant growth and there are now some good options for making African investments.

But why invest in Africa when there are other options elsewhere that you could take advantage of and would be far easier. For one thing, investing in Africa is a positive and somewhat philanthropic thing to do, as it not only serves your won financial ends, but it helps to build up a continent in need of finance and aid. The continent has suffered and continues to suffer from serious internal issues ranging from civil war and famine to disease and political strife. For a long time this has put off different funds from offering investment into a country they thought as far too unstable to provide steady financial returns. Nonetheless, and more so now, there is great potential there.

Africa's best chance for building itself up and digging itself out of all its woes is not on continued foreign aid and charity, but on continued foreign enterprise and investment from private companies. A couple of years ago roughly 1% of foreign investment throughout the entire world is invested in sub-Saharan Africa, yet this is changing. As the World Bank has said, Africa offers the highest returns on foreign investment for any region of the world.

Surely then there are great opportunities to make investments. Yet due to the perceived risks, these levels remain smaller than they could and perhaps should be. With political strife all over and currency fluctuations affecting economic stability, you may just run the risk of your investment being lost. However, it is important that you simply know what you are doing and where to go with your money. On the whole there has been a great growth in democracy around the region and this has led on to greater development in different markets and industries.

The economic performance in sub-Saharan Africa is increasing, with the largest growth areas being seen in industries such as finance, infrastructure and tourism. Tourism particularly is an important industry for African nations and encourages people to see what these countries have to offer, in turn bringing in foreign investment.

Stocks markets have also seen large improvements, regularly outscoring averages around the world, and increasing in number from ten to eighteen in the past twenty or so years. South Africa also, fundamental to the growth of the continent has been seeing consistent growth and continues to account for about 25% of the continents GDP.

For any canny investor willing to take a slight risk in the hope of some high returns there is no doubt that Africa can offer some significant opportunity. The main problem for any independent, small time investor is finding funds that will offer then the opportunity.

For those therefore, keen on locating a fund that will offer then high potential investment returns, there are some available, in most cases, just be sure that you can take the hit of losing the money you have invested. - 23217

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Forex Trading Victory Should Be Routine

By Marcus Anton

While there may be an infinite amount of traders out their in the market looking for that special tip or secret that is going to give them the big winner, most traders need to understand that its both routine and careful system that will lead them to success much sooner. Forex systems are as unique as their inventors, that's why they often do not work nearly as well for another forex trader.

If your looking for forex trading tips, or the footprint to success, you really need something that performs for the majority of forex traders. By following some specific strategies, having your mind wrapped around good actions, and creating positive daily forex habits, you'll soon be on the crossroad to a unbeaten forex career.

Watching the Calendar and Removing the Interruptions

Each morning that you trade forex, you should be following a routine for success. The forex or economic calendar has important events and announcements that can quickly change the direction of the market and the volatility of currency prices. Pay closer attention to those announcements or events taking place in the next 24 hours, so you can prepare yourself to make a trade if the situation warrants. With just that one simple step each day you can be assured that you won't miss a considerable trading opportunity. Alerts are very easy to setup by using a service found on the Internet or something you may already have on your pc.

It would not be a good idea to be interrupted by your email software while your placing a trade, so close it before you enter your forex platform. There is always something of interest or importance in the market, so don't let your email preclude you from reacting to it. To stay focused on your forex trading, you certainly don't want to hear and see things that will distract you from a winning trade. It makes sense to silence all your phones so you won't receive calls while your forex trading.

Keeping Mind and Body Effective

If you have spent any amount of time in front of a computer, you know that spending hours positioned in an office chair can quickly wreak havoc on your body.You should take a pause often, or at least once every other hour or between forex trades. Getting your blood percolating again will get you awake and adjusted for that next immense move in the forex market. Take a break, walk around and get some fresh air, or simply take a bathroom break. This can also help you with drowsiness so your not dazed while making forex trades. If you can't get into a workout routine in your trading day of at least 30 minutes, then standing up, taking a walk or simply walking to and from another room will do your mind and body a lot of good.

Don't Completely Misplace Yourself in Trading

The problem with forex trading is it can be very time devouring and often becomes all-consuming. Don't forget that you have other preferences in life whether it be friends, family, or just simply downtime for yourself. By utilizing some outside interests every week, you can prevent burnout and you will find that your forex trading becomes a welcome outlet, not a hefty headache.

Forex Forums

You most likely have experience with online forums and realize what value they hold. This is noticeably correct with forex trading online. In trading foreign currency, you will soon realize that almost everyone has a different experience and perspective when it comes to trading. The forex forums can provide you with a lot of knowledge of the currency market from people that have been in the trenches and have experienced just about every type of market. Its funny how unique and different each version of the same thing can be. Forums are not only a good place for forex information, but they provide good interactivity as well. This can also be a great spot to get some interactivity and discussion going when your trading day is slow.

Renovate Your Financial Portfolio

Its always good to start thinking about diversifying your portfolio, especially after making some very lucrative trades in forex. While you may not want to tie up your money in other investments like stock or bonds, forex is very liquid and allows you to quickly receive your cash back in your account after trading. This positive step should alleviate some uncertainty of your forex trading future. The nice thing about forex is once you learn it, you will have a good understanding of many of the same terms use in stock trading.

You may not think you have the assets to transfer to a different investment, but the truth is you probably don't need the full balance you now have within your forex trading account. Forex trading indulges you with the ability to use leverage so you will not have to lay a large deposit down to trade. A drawdown is good plan of action to relocate some funds to a safer and less volatile investment account. This is good money management plan of action that the best forex traders employ. - 23217

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Best Penny Alerts Review

By Ronald Cornwell

Do you want to read a member's review of the Best Penny Alerts System? After joining up with this service, I am being provided constantly with a string of profitable penny stocks recommendations from the experts in the field. If you are looking to make some income from trading stocks, penny stocks trading is definitely one of the areas that you should look at.

What Are the Benefits of Signing Up with Best Penny Alerts? Traditionally, anyone who wanted to make money with penny stocks trading will need to have many years of experience trading them, and probably also have lost a lot of money in them. By joining this service, I was able to start making income with their expert analysis and recommendations without having to do the hard work myself.

This is helping me to save a lot of time and effort from having to do my own stocks research in the penny stocks market.

How Does the Best Penny Alerts System Work? It is a service that allows anyone, regardless of their trading experience, to start learning and profiting from penny stocks trading at the same time starting from the time they sign up. This service is provided by professional trader David Roy. His system is capable of detecting buy, stop loss and take profit levels for 1,000s of undervalued companies and provides an instant alert whenever their prices fall to or below the recommended buy prices.

Is It Really That Easy to Make Money with Best Penny Alerts? After my many personal years of trading experience, making money from penny stocks is definitely not easy. Just like trading other financial instruments, it requires analysis into different factors that affect the fundamentals and technicals of the various stocks.

Luckily, Best Penny Alerts has been programmed with all the analytic tools, deriving the final deduction about the stocks before sending them out to members. - 23217

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Learn Forex To Succeed In Forex Trading

By Bart Icles

The idea of getting high profit margins from just a matter of one or two trade deals in Forex currency trading is a very enticing and very appealing opportunity for most traders and investors of the market today. Considered to be very high risk and volatile, currency trading can mean a substantial loss and even a complete wipe out of investments particularly for those with very little or no experience at all. To keep such dire scenarios from happening, traders should learn all that the can about the industry before stepping in blindly.

Here are some basic and sensible steps to take to keep you from losing your money, and possibly many more things than you can ever imagine:

Research all things related to Forex trading: news, current events, Forex blogs, and articles; if you can find the words currency trading, profits, pips, trading strategies, or just basically anything with Forex in it - you read it. Go to some Forex websites and other online investment and money sites to get additional highly informative topics and advices on the currency trading market.

Make it your habit to make regular visits to the Federal Trade Commission website and read about past and present scams proliferating the Internet to keep up to date and informed. The federal government's watchdog is there to help keep the unwitting public from being victimized, and thus keep the industry safe and prosperous in the long run for all those who patronize it.

Get a free demo account from a reputable Forex brokerage firm and learn all possible applicable theories and practices before doing live trading - even if it is on a small scale or limited rate. Be sure to keep practicing and learning from your mistakes and to take note of what works for your trading style, and how to improve on it as well. Another important thing to remember is to always ask questions if anything is not clearly understood on your part, and to ask for advice when in doubt.

Subscribe to Forex feeds to get the latest topics that have a direct effect on the world's currencies and not just on the currencies you are presently tied with, as this may have a ripple effect, though however subtle or unrecognizable to the untrained and inexperienced trader or investor.

You might also want to join in on some Forex traders forums on which trends are being discussed, which also sheds some light on a few common and not so common issues and problems of the industry that affect all participants, big or small. These sites are a boon to the new traders who need a constant influx of vital information from the experts to keep their education a positive and ongoing experience. To become profitable and successful in this line of business, and with today's current economic trends, you need to learn all and much as you can about Forex. So, don't just learn Forex - learn it well, and you won't ever regret doing so. - 23217

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