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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. #61
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    Each venture conveys certain dangers alongside them. There is no protected venture that has definitely no dangers of you losing cash. The greatest venture chance is that of losing cash. As the market is exceptionally unpredictable, you can never make certain about the estimation of your cash after a state of time. You remain to lose most or even the majority of the cash you put in for the speculation. Another significant hazard is you being deceived or mis-sold a speculation strategy. There are numerous moneylenders who have a tendency to celebrate the speculation and guarantee significant yields. At last, they flee with your cash, leaving nothing for you at last.

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  3. #62
    Registered user snnaky's Avatar
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    Success in trade is the accumulation of all knowledge experiences and avoid many mistakes and the stubborn trader has no place in the trade. The one piece of advice that I can give to newbie trader is to learn and practice using Demo accounts to have more knowledge in the business.
    You must always bear in mind that Knowledge is the key to success!

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  4. #63
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    We should do trading like a job. Job gives us less income but trading more. Just keep it in our life, Stay and Happy

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