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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. #21
    Trader Senorita's Avatar
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    This business is a very risky trade and it will be very good of us we understand how to manage and minimize the risk in this trade. Many wish it's an easy market but our success depends on our ability to have a good system of money management. Planning good will be essential towards achieving great things in forex and if risk can be managed, we will indeed smile.

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  3. #22
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    there is no doubt that the trader should always try to trade with small risk to protect the account from big loses, forex is risky business and can punish anyone trade with big risk because it is a strong business and so the trader especially the small traders should trade with small risk to survive and make consistent profits.

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  4. #23
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    The investor risk is the starting up capital as well as the unclaimed profits.A trader need to be meticulous about the type of trade you placed and careful and smart in taking their profit as quickly as possible.When placing long term trade you must be vigilant about the trend in the market and choose appropriate measure to counter any negativity during trading which may affect you as trader.In actual fact i use both long and short term trading methods depending on my trading plan.

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  5. #24
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    As an investor in forex, you must note that you are faced with risk and you should properly plan on the means to reduce the huge risk in forex. We can manage our risk very well by not allowing emotions to control us and by trading with the right stop loss and lot size. An effective risk management is what will help any trader to really survive trading forex.

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  6. #25
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    sure investment is risk without learning... learning is the first process in the trading world and if a trader does not want to spend his time for the learning then he can never become a good professional trader.We can never make the money if we are going to start the trading without a learning process.Learning is the first process for a trader.

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  7. #26
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    there is no doubt that we can see the risks in the trading at every time we trade the foex market it may be so good for us to deal with the market according to these rules we may have to think of the trading strategies which enable us to apply the best ad effective trading ways .

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  8. #27
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    All of the above list are all important but there are other way that you can invest more wisely in the forex trading business you have to make good use of the information that you have for you to know who you would want to work with so taking g precautions would first became from what you know

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  9. #28
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    Forex itself is a risk and we need to run the greatest form of channels that we have to working the greatest for the right sources we have to work and we need to work the market is the risk when we have to run the best of traders channel in every risk we know

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  10. #29
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    Very informative post about the risk management and i think the market is high risky and high risk is involve in this business but i think as a professional trader it is our responsibility that we can mange and reduce the risk factor and use the tools of the market which help us to reduce the risk and survive in the market long because when stay then we have the chance to mange the risk and also make the profit

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  11. #30
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    Forex is very difficult and needs to be knowledge or special expertise companies, because there are companies that are striving Market Maker for the loss of the client

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