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Thread: The investor risks

  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. #51
    Registered user YoyO_o's Avatar
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    we should open any trading position according to our capital and proper risk management the investors must follow the proper risk management when they are making their trading strategy it will be very suitable for the traders. if we manage our money well and read forecast every day then we can get huge profits here that we always need to keep in touch with the market forex to win good money here.

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  3. #52
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    If we want to trade and make money in the forex market we should have the adequate experience and knowledge of trading forex and take money and risk management seriously, we should risk the amount of money we can afford to lose in every single trade that we take.

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  4. #53
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    yes you are right investors can be in risk very informative thread i say, in my view our fund may be in risk in another business like online jobs data entry jobs add clicking jobs but in forex our funds are manage with good brokers which are affiliated with FCA etc

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  5. #54
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    investing in forex or stock market always has a risk because it is not an easy business to handle all time and so the trader should trade with little risk to decrease the possibility of loss of money and make it small, hat discipline with low risk trading will always be safe and will not burn his trading account easily and will make profits that may be consistent profits.

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  6. #55
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    Forex and stock are risky market to invest so be rest assured that when you invest money in this business there is a chance for you to lose your investment too, so you are taking a risk while investing in the foreign exchange market or stock exchange because they are risky business what determine our success with this business is our experience, skills and knowledge.

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  7. #56
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    the trader should know that forex is a risky business and so he should always try to decrease the risk as he can as possible and so he can be able to trade with more safety, many traders lose their money during trading with big risk and so with little mistakes then will face big loses or margin call but the traders that trade with low risk will save their money from going away and stay in the market for long time.

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  8. #57
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    According to my opinion the business is not grow without risk in investment.Even then the middle class investors are take higher risk because they want grow fast.
    Business will be in lost due to risk but sometimes the growth ratio of your business was increase and then you earn more profit and money.

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  9. #58
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    The forex markets appear to be like some other businnesses where it should be taken into account the risk and the rewards of those risks . As a matter of facts , it is possible to get some huge profits on the markets , and inversely , it is also possible to get lots of losses on the same week , on the forex markets . That is the reason why traders should always get the attention of the risk management when writting trading plans , that will allow them to get more profits on the markets .

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  10. #59
    Registered user ict2014's Avatar
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    In the world, man and woman are facing low risk and high risk and enjoy in order to a good life lead. A journey of Aero Plane is very risky but people not fear as they get swift service and entertainment. This is true that forex business is a risky business than any other business but if we see its reward side then no need councilling. Here we need more managing power of high risk that come hard industry and super disciplinary activities.

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  11. #60
    Rookie Senorita's Avatar
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    In this trade the risk is open up for traders who decide to invest in the financial market. When we talk about risk, we can conclude that it's an uncertainty concerning financial loss, so we must be ready to face this uncertainty because it's a win or loose situation. Management of risk is a good concern and if we can really work on this trade, we can have the ability to sustain in forex and build a more likely trade needed for successful trading.

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