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  1. #1
    Super Moderator Gulfstream's Avatar
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    The investor risks

    The investor risks

    Today, the trust asset management has a wide propagation on the global financial markets. These services are provided to corporate and individual customers by traders.
    In marketing campaign traders describe the advantages of trust asset management tolerably well, but they rarely mentioned about possible financial risks for investors in this sector.
    We will not consider the advantages of the trust asset management because they are available in any commercial article, posted in the Internet and in other media. In this topic I want to focus on financial risks for investors in the trust asset management.

    Firstly, investor should know that the activities on financial market, particularly on Forex, are not just high return but also very risky. Therefore, he must be ready for the fact that in this area it can not only make good profit, but at any moment to lose all capital.

    Secondly, investor should take the precautions for minimizing risks before delivered his funds in trust asset management:

    · to diversify your funds (allocate invested fund). Its like "Do not keep all eggs in one basket"
    · examine the company in which you plan to invest ( check the registration address, the existence of license, reviews, conditions of cooperation etc.)
    · while choosing trader, whom you plan to trust your funds, check carefully his personal and professional information ( Name, passport, place of registration, reviews, statements, the strategy of trading, how he follows the rules of risk-management)
    · conclude the contract

    If with first three are clear , the last one will raise several issues with which we will try to find out now!
    “Do I need to conclude the contract?” – it should be the first investor question.
    In my opinion, it is obligatory to conclude the contract.
    At first, further relationship will be conducted only according to the concluded contract.
    At second, if the contract was completed in details, it will be less divergence and misunderstanding between sides.
    However in some companies concluding of contract isn’t practiced.

    What does it lead, you ask?
    This is an exhaustive answer to this question:
    In most cases, the deposit is burned, which formed enough decent sum of purse, and total lack of such initiators act( not heeding the investor).
    In this case dealing center or broker company will be not in the business, and it will be difficult to find trader, and especially to be brought him to justice.
    In addition, the absence of duly formalized contract promotes increasing the chance of an investor «to get into the hands» of fraud. It should be remembered that the existence of the contract only reduces the chances of the above, but not completely exclude them. But in any case, the existence of the contract - it's better than nothing.
    Therefore, the investor must be highly responsible approach to the selection of the company and the trader, whom he is going to trust their money. Often the wrong choice made leads investors to disastrous results. To illustrate, as an example, here is one of fraud scheme as a result of which the investor is "with nothing."
    The situation is simple. So-called trader-scammer finds 2 and more investors (intended victims) and by the way of theirs persuasion in his professionalism and big experience in financial markets, gets in control theirs accounts. Then, without giving details of technical or fundamental analyses, trader opens positions. At one account buy order is opened and, at the other – sell order for the same asset, it means two deals are opened at both accounts in opposite sides. By the end, one account has significant growth of the start-up, and the other has equivalent losses, the worst case – full burning of the deposit. The investor, who had the less lucky, splits up with the trader, lost all his money, and the last – gets his award from the investor, who had profitable positions.
    Further action of trader is going by well-established scheme. Meanwhile profitable investor account could easily turn in to unprofitable. But pseudo – trader will not worry for this, he have been rewarded already without any effort.

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  2. #41
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    the investor will face the risk when join the real market and will trade and face a risk in each trade, so the trader should find the broker that offers good trading conditions and help the trader to trade well as this will decrease the risk and make trading more smooth, the trader should read about the broker before trading with it to know better about it.

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  3. #42
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    Because, the investor is just provide the money and they do not do anything, and investor just put the trust to trader who they claim can operate the money into more interest. I think the laziest work in the world is the investor. So they must also get the numerous responsibility to get any risk in forex trading. Everything in this world is based on the fairness and investor got the risk level same as the reward level

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  4. #43
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    Thanks for the enlightenment.Many investors just have this mind set that the moment they invest their capital,money would be realized without knowing the risks involved.That is why good financial experts are very useful here.Like in my hometown,some years ago.So many people invested in forex,thinking it was that easy today they don't want to hear about forex because they lost and paid dearly for their wrong motives of wanting to get rich overnight.

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  5. #44
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    Everyone take risk in the market, from broker to investors and trader because the forex market is a risky business it's not all about high return but also we can lose big money too if we are not careful, forex trading is risky business that is why it's important to learn and understand how the market before we start to trade.

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  6. #45
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    the risk is there for us, and we have to take it carefully, because a little mistake can give us loses, i ever blew up my accounts for many times at my first year at this business because did not understand how to use and manage it, till got the experiences and made me know how to manage our capital for trading, using money managements and just enter the market with good reasons,
    and one thing, we do not use all capital at one accounts, just use it wisely

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  7. #46
    Registered user ict2014's Avatar
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    Quote Originally Posted by sameeh View Post
    the investor will face the risk when join the real market and will trade and face a risk in each trade, so the trader should find the broker that offers good trading conditions and help the trader to trade well as this will decrease the risk and make trading more smooth, the trader should read about the broker before trading with it to know better about it.
    Obviously your idea is not bad at all. Making a good career in forex need good knowledge and skill and also need help of a broker. Nothing there specific education in school or high school or college level about forex. For this reason, if broker arrange a forex school from where everyone get any type of education and bonus money, then the trader can be motivated and encouragement to spend more time for learning or earning. Roboforex is one of them who has analysis section, support section, Education section etc. Doubtlessly we can enter and continue our business.

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    Last edited by ict2014; 11-11-2017 at 08:37 PM. Reason: spelling correction

  8. #47
    Low Cost mohabbat's Avatar
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    Quote Originally Posted by PROPENSITY100 View Post
    Forex is a risky market. in my view it is now mandatory for all brokers to mention that investing in Forex and other related financial market entails risk and can result in the loss of funds. However in many places and many brokers we still find that they elucidate well about the advantages of the Forex market and the possibility to secure an unlimited amount of money here, and at the end they just mention a line about the risk involved in trading. Well the fact is all depends on traders skills and mindset.
    It is risky no doubt about it but it is huge profitable. Risky business always becomes profitable. Now if we want to become profitable then we have to take that risk. No risk no gain. In order to gain profit we traders have to take the risk. Some uncertainty we traders should avoid. We should invest in regulated and reputed broker houess like roboforex. Roboforex is best broker house and our investment is safe here.

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    Don't loss you hope.

  9. #48
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    Investors won't be in risk if they invest in roboforex broker house. Roboforex is safest place for investment. I am sure investor can rely upon this broker house. Investors and traders can clam down after investing their money in this broker. This is best broker house . This broker does not cheat with their clients neither disabled anyone trading account. I have full faith in this broker house.

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  10. #49
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    Quote Originally Posted by Gulfstream View Post
    The Golden Rule works here:
    The more investors want to get profit, the higher is risk of losing capital and conversely, the lower –the less profit it receives.
    Yet this is the first and the last thing each and every new people need to know when they decided to participate in this risky business. Forex trading isn't a safe place to earn money because things are based on how much we risk in first place. We should never think that forex market will have mercy to us because it's the law we can never deny. When we sign up and create an account, we should know everything we trade, earn and lose are our own responsibility. That's what makes the investor's risk sounds clear to me.

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  11. #50
    Registered user Senorita's Avatar
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    As a forex trader, you are also a risk taker which is why it's necessary for you to think on the means of managing risk in a rightful means and have the means to succeed in your trade. Forex is a very risky business and the only way to make it here is by having a good system that can help you deal with risk perfectly. Money management are really one part we must keep active on and ensure we make the rightful decisions which will see we improve to actualize our very own dreams.

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