How to determine if a PAMM Account is worth investing in

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Thread: How to determine if a PAMM Account is worth investing in

  1. #1
    Junior Member CarlosR's Avatar
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    Default How to determine if a PAMM Account is worth investing in

    How to determine if a PAMM Account is worth investing in
    Interest in investing is growing and people are getting more and more knowledge about professional trading. However, their experience is not enough to conduct the investment themselves. Thus, PAMM Accounts are very popular. The choice of traders is the most significant point as the manager is the person whom you entrust to manage your capital.

    There is some significant PAMM Account data that should be paid attention to when choosing the manager to manage your funds.

    The first thing to analyze is the account opening date. From the graphs you can appreciate the length of the trader's work on the account, the account balance with money converter forex, the general growth, the consistency and their experience.

    Operating income is the second significant thing for inexperienced investors. The success rate of traders is an extremely temporary attribute so if profits were 200% last month, they may just be 20% or less this month. Here you should appraise this steadiness over diverse intervals. Another factor you should bear in mind is the first value as it is easy thing to manipulate.

    Another thing is manager remuneration. The most skilled traders can increase or multiply the minimal capital investment.

    Pay attention to the aggressiveness trading which is the amount of risk managers take. Take a look at the number of deals and the amount of trading per day.

    The deposit amount is the money amount under risk
    ; it is the maximum trader deposit percentage used for trading. If trader's deposit is 50% or above, it generally means they are a high risk trader.

    Recovery factor highlights a trader's ability to restore losses after fall and overcome the tension and potential fiasco. It is indicator of trader's success rate.

    Manager's own capital. The trader with the big personal account is considered to be careful and responsible as he risks his own money as well.

    The total equity of all accounts indicates the level of funds being managed and this gives reason to trust such trader.

    The type of investment needs to be studied carefully. There can be two types: short-term and long-term investment. Long-term investment or scalping investment comes more recommended. It takes more time but can give a good potential profit.

    Keep in mind all of these points when making your choice for an appropriate PAMM Account. Sometimes some websites show the lists of the best and selected PAMM traders. Don't rush when choosing PAMM Account; instead weigh up all the data. Choose the trader who works in a stable and profitable fashion.
    The Forex is good

  2. #2
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    As far as I know, PAMM is only a good solution when you lack a decent financial background to be able to proceed trades. It's like let others traders (who is maybe more experienced or somehow manages to get good information) to use your money on trading. Therefore choosing a good PAMM is the key element for your success. Doing some personal research is enough to tell whether a PAMM is good or not regarding one's experience, trading history, recovery factor, number of investor and total equity.

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