PAMM account - divorce? Why not invest, reviews

In the financial market there is such a thing as a PAMM-account. Many investors create investment portfolios for themselves and make a profit. How can I earn with this account?

What is a PAMM Account?

A trader who has become a manager opens a certain type of account and invests his own funds there. Such investments are called the capital of the manager. And then he creates an offer, and on certain conditions, willing investors can invest their money in the PAMM-account of this manager.

Thus, it turns out that the manager trades not only on his own funds, but also on the money of investors who, under a certain percentage specified in the offer (offer conditions), transferred their own funds to management. As a result, the manager risks not only the means of his investors, but his own. On the other hand, the manager receives a percentage of income for making transactions and managing the investors' funds, that is, the PAMM-account. Everyone who wants to earn, thus, chooses for himself such a manager who suits him on certain parameters. The investor himself sets the selection criteria and limits his risks.

PAMM-accounts as an opportunity to earn money

PAMM-accounts: is it a divorce, or is there no deception in this? To answer this question you need to familiarize yourself with the terms of earnings and see how this all works. In order to better understand whether such types of investing are fraud, that is, PAMM accounts-divorce or a real earning potential-consider the example.

Suppose the manager opened a PAMM-account with certain conditions that he offers his investors. Then he leads the trade on it. Investors are observed through monitoring of its work, and by its results determine for themselves whether it is worth trusting their funds to this manager. The received data satisfy them, and they invest in the PAMM-account of this manager. And the latter continues to trade, but not only with its own funds, but also with the money of investors. His PAMM-account is increased due to investments, and trade continues. If the manager's own funds are 300, and investors' funds (one or several) are 200 dollars, then the total amount is already 500 dollars, and this money is managed by the manager.

The more successful its trade, the higher the manager's rating, which means that more people will invest in its PAMM-account. As the account grows, so does the means on it, and hence the profit for all participants, which is distributed in proportion to their investments. Under the terms of the offer, all investors at the end of the period (usually once a month) are paid to the manager for a successful transaction. If they wish, they can continue their cooperation.

Calculation of investment PAMM-account

To better understand: PAMM accounts - divorce or not, consider the following example. The initial amount is $ 500, of which $ 300, the manager's funds and 200 are investor money. By the results: 1500 dollars, profit 200%.

So, as a result of trading on the PAMM-account:

1. Manager: an investment of 300 dollars, a result of 980 dollars. That is, 300 is the initial deposit and plus 200% of the profit, plus a percentage of the reward from investors, in this case 20% of their profits.
2. The first investor: investments of $ 100, the result of 260. Two hundred dollars - profit and minus the percentage of compensation to the manager, 20%.
3. The second investor: investments of 60 dollars, total 156. One hundred and twenty dollars - profit and minus 20% for the manager.
4. The third investor: investments 40 dollars, the result 104. Eighty dollars - profit and minus 20%.

In the end, all were satisfied and with a profit. The investment scheme is clear, and now everyone can decide for themselves whether the PAMM-account is a divorce or not.

PAMM-Account Insurance

What are the risks, and in general - are they? The fact is that all investors have several types of insurance. If you consider the PAMM-account as fraud, then this is far from the case. There are brokers who insure the PAMM-account. This is the first way to save the invested funds. And the second one can be called an insurance conditionally. Most likely, this is a minimization of losses, that is, losses. Under the terms of the offer, the investor can limit his losses independently. What does it mean? The investor determines the level or any specific amount that he agrees to lose, but no more. For example, an investor determines that losses on its investments can not be more than 20%. Or a certain amount, for example, from an investment of $ 100, the losses can not be more than $ 20.

Risks of investing in PAMM-accounts

The risks for the investor exist, and the PAMM-account divorce or not, it is up to each individual to invest in such an account. In the example that was given above, the case was considered when the investments yielded revenue. But with an unsuccessful trade, all participants can receive losses. Completely from losses nobody is insured, for that he and the financial market which always differs the big risks. Any investor can limit them, but it is completely impossible to exclude them.

If you take the definition of a PAMM-account, divorce (word) in relation to it will be unjustified. Before opening this kind of investment, everyone who wants to invest is immediately warned about the risks. In addition, it is also worth considering the following: monitoring is, of course, good, you can track the manager's trade and choose the best for yourself. However, the previous work on such an account does not guarantee profitability in the future. Suppose that the manager for a few months receives a stable income of 40%, but this does not mean that in the future it will be the same. Next month, he may receive a loss. Such risks can only be limited, but it is impossible to avoid them for the PAMM-account. As far as it is risky, it is necessary to solve each investor independently.

Passive income

Probably, any person wants to have earnings in the form of passive income. Of course, this is convenient: you can deal with any business and constantly get extra money. Some people distribute their investments so much that they live only because of them. Someone earns on various Internet projects, and someone invests money in the bank and lives on interest. Everyone decides in his own way what kind of investment he should do.

PAMM-account "Forex" - a divorce for lazy people, or is it all the same kind of passive income? Usually people who do not want to understand anything, find out something, are at a loss, but simply look for "magic earnings", in which you do not need to exert any effort. In any financial sphere, you need to have basic knowledge. If a person does not know anything about the system with which he wants to earn money, it is very easy to deceive him. Therefore, before you invest anywhere, you need to find out what it is and how it works.

How not to be deceived with the PAMM-account?

If a person wants to have an income in the form of investing in a PAMM-account, for this he needs to learn more about this kind of activity. PAMM-accounts: divorce or still a real income? It all depends on what kind of investment portfolio you choose for yourself who wants to receive passive income.

How to do it right?

1. First of all, it is necessary to monitor all PAMM-accounts, which seem most suitable. You need to see the profitability, preferably not less than 1 year. The schedule for increasing profits should increase steadily. There should be no sharp changes and jumps.
2. Further, it is necessary to determine the risk threshold, that is, the amount that the investor agrees to lose in case of an unsuccessful trade.
3. You also need to look at the rating: the higher it is, the better.

Main parameters of the PAMM account:

• Profitability (expressed as a percentage);
• Working time (how long it exists, in months);
• The uniformity of profit (you need to watch the schedule);
• rating.

Is it worth investing in PAMM accounts?

If the investor does a good preparatory work, then the PAMM-account can become a good additional earnings. But only if the compulsory conditions that have been described above are observed. What an investor better and more carefully conduct economic analysis, the more chances for earning. It is necessary to learn all the subtleties and nuances on this issue, you can even go through special training. There are various courses and programs for investment training.

If a person wants to earn on PAMM-accounts "Forex", you need to pass specialized investment courses on PAMM-accounts. It is on them that you can learn how to choose the right portfolio for yourself. The investment portfolio includes several PAMM-accounts. How to properly allocate your funds and what methods to work with them, you can learn at such courses. Only after passing the training can you invest in the PAMM-account.

Reviews

There is an opinion that the PAMM account is a divorce. So people who lost their money on this kind of investment believe. Getting a loss on a PAMM-account is quite realistic, since the risks are really high. However, not everything is so bad. There is a fairly large percentage of people who earn on this. The opinion of specialists is that it is possible to receive passive income on PAMM-accounts, only it is necessary to select an investment portfolio for this purpose. And also you need to pass special training. Having fulfilled all the conditions, the investor will have a chance to receive passive income from the opening of the PAMM-account.