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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. #11
    Trader megoesspacemego's Avatar
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    Quote Originally Posted by Gulfstream View Post
    Secondly, investor should take the precautions for minimizing risks before delivered his funds in trust asset management:
    to work with the beginning inauguration as defining one with the trading instrument as best of those to match with the personal preference on possessing use of system and technical skills to gives of chance as completing tasks to met with the beginning numbers of target to complete within the given terms.

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  3. #12
    Trader layigold'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.
    Most of the forex brokers have RISK DISCLAIMER boldly written on their websites that trading financial instruments on a margin carries substantial level of risks and you could lose all your investment. A forex trader must have this registered in his mind so that he will be better informed that he must not play with the money that will affect his financial life if lost

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  4. #13
    Trader Sixteen's Avatar
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    Quote Originally Posted by layigold View Post
    Most of the forex brokers have RISK DISCLAIMER boldly written on their websites that trading financial instruments on a margin carries substantial level of risks and you could lose all your investment. A forex trader must have this registered in his mind so that he will be better informed that he must not play with the money that will affect his financial life if lost
    Forex on its own is risk and its well to know that we can see this financial risk warning in many regulated different brokers. If we are to be successful here, we must learn how to manage risk and look on the means we could improve better with this business. We have risk to face in this market if you are deciding to trade, and so we should plan on a great money management to survive.

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  5. #14
    Trader megoesspacemego's Avatar
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    the risks as not to losing with the submission of margin by the internet, those means as trader to prepare of the better strategy on expending the limit with the exchange on requesting returns with the extent on commitments as applying use of details with the arrange on applying use of system and the proven analytical option as proposing the good option by the submission of order by the market.

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  6. #15
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    Well i agree with you that making money is not like a spoon feeding you need to work a lot in the trading to make profit from the trading. In the same way investor need to do lots of analysis before taking a move in the forex to invest money and the more they will give time the more they will get the return.

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  7. #16
    Trader moccarist11's Avatar
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    Quote Originally Posted by Gulfstream View Post
    · examine the company in which you plan to invest ( check the registration address, the existence of license, reviews, conditions of cooperation etc.)
    yes to work with the customs of evaluation measuring the different aspects with the business intelligence to gives of reference as trader might gains of notice with the information to secure of decision as applying plan along with the terms of details on regulation.

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  8. #17
    Trader Sixteen's Avatar
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    We are all faced with risk in this market and the most important thing here is for us to understand the risk we are facing in this business. It's necessary because if we understand it we will know how better we can manage our risk in this business. This business comes with a great risk and we should work properly to develop a great pattern to minimize loss.

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  9. #18
    Trader lawners1791's Avatar
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    Quote Originally Posted by Gulfstream View Post
    · to diversify your funds (allocate invested fund). Its like "Do not keep all eggs in one basket"
    those with the generalized on action having with the different supports on tools and the utilization as measuring the varies on more with available offers with the ways on examining works on referring one with the action to gives with the higher precise on accuracy as noticing strength of confirmation, with the chance as being with the market field of trading facilitation.

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  10. #19
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    Before you can go farther and have investment in this that is forex trading business you have to know that you are exposing yourself to so much risks that you might be getting yourself into there is a disclaimer that you have to read in the terms and conditions when you are opening a trading account

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  11. #20
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    Force is always risky business. But it is high profitable site. It gives us opportunity for take good money in the right way. We should remember it if we lose our capital one time it will not back. Will need invest another capital. So we should get good knowledge and experience with a good money management. Good money management can save our capital.

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