Thread: Equity Friendly Forex Managed Accounts

I wanted to briefly discuss what I like to call “Equity Friendly” forex managed accounts. If such a description actually exists, I had to assume it had it's polar opposite, “Non-Equity Friendly” accounts.

My definition of an “Equity Friendly” managed account is a program offering an overall trading model that protects the integrity of it's clients' principle as top priority while patiently waiting for high probability trade opportunities. This is the methodology used by superior hedge funds and is usually reserved for high-end investors, frequently to augment their portfolio's for retirement. Investors with the means to meet the high minimum deposit requirements therefore have a long-term view toward their accounts and have realistic expectations on their returns (5%-10% per month with low monthly draw-down).

All trading is performed live by highly trained professionals with many years of experience and mostly without the use of automated robots. Their trading model is usually based on the momentum of the long term market trend for greater stability and they always use prudent money management!

Adversely, “Non-Equity Friendly” accounts primarily trade on the shorter time frames as their base, risk way too high a percentage of their client accounts per trade and usually use robots that trade blind through all market conditions. These are the programs that are in vogue and plaster the web these days. Clients are lured in by totally unreal profit expectations. Their traders usually end up over trading and over leveraging client accounts trying to qualify for their performance fee, all the while running up their per trade fee's.

The undue risk of this type of approach inevitably experiences significant losses in their clients' accounts (30%-40% or higher) which is essentially unrecoverable. The trader feels anxiety to approach their unreal advertised monthly returns and continues to trade away through the most volatile market conditions, using higher and higher leverage trying to recover, only to dig a deeper hole for themselves and you.

Please ask yourself this one question, “What have you heard more about people's experience investing in the Forex market over the years, turning a $10,000 account into $30,000 or turning $10,000 into $1,500 in 6 months?” It's your money!

This also applies to most of the signal services out there, offering live execution or not.

The trick is to find a firm that uses this equity friendly approach, but doesn't have the $100,000 and up minimum deposit requirement.

Hope this helps.


https://PremierMarketsAdvisory.com

The investor opens a Forex account at a Forex brokerage house of his/her choice. A Forex broker facilitates the Forex transactions between buyers and sellers. There are different types of brokers and it would be wise of the potential Forex investor to research the different types of Forex brokers and choose the one that best fits his/her investment objectives. The broker account that the investor opens is owned and controlled 100% by the investor him/herself. All investor funds deposited into that account are held by the Forex brokerage where the account was established.