Understanding Forex Trading - Forex Account Managers
A Forex account manager is a professional trader who trades on behalf
of the owner of a Forex account for a salary or a percentage share of
the profits. A Forex account manager is usually given authorization by
the account owner to place trades in his or her trading account
without his or her intervention. It is of essence to note that the
permissions of the account manager are restricted to trading only. The
account manager is not authorized to deposit any extra capital to the
account or make withdrawals from the account.
Not every trader can qualify to be a Forex account manager. It needs a
lot of experience in the operations of the Forex market to qualify for
this role. Importantly, an account manager should practice the right
money management rules and proper risk level when trading currencies.
Therefore, it is essential that you do not entrust your money with
anyone that brags of huge profits on a Forex managed account history.
This is because most of the so-called Forex account managers are
fraudsters who post fake two or three months trading history when they
were realizing huge profits because they were trading with high risk
and they were not practicing proper money management.
In addition, because of the dynamic nature of the Forex market, past
results are usually not indicative of future results. This is the hard
reality of Forex trading. Thus, you should not throw your hard-earned
cash to any Forex account manager you find promoting his or her
services with flashy banners. Beware!
Most people prefer to entrust their accounts to Forex account managers
because they lack the experience and the necessary skills to invest in
the Forex market. Other people claim that they are prone to emotional
extremes and thus they like to entrust their funds with an account
manager in order to overcome this problem. Inadequate time to study
and analyze the conditions of the market is another reason why some
people opt for account managers.
However, the problem with these viewpoints is that they rob someone
the priceless knowledge and experience gained by studying how to trade
currencies. Most people do not like educating themselves on how the
Forex market works and they end up entrusting their hard-earned cash
to account managers who blow their accounts in a matter of days. In
the end, the only way of succeeding in the business of trading
currencies is to be knowledgeable, develop a profitable strategy
through adequate practice, and maintain discipline regardless of the
market conditions.