Best PAMM accounts?
We will not show you a holiday gral. Best PAMM accounts are one which satisfies your risk tolerance and profit.
Therefore you will find two or free types of PAMM account strategy.
Low-risk strategy is named Conservative. Conservative strategy goal is to save money and earn after. To beat a bank’s given interest. However, in some countries banks rather not pay them interest, when people hold cash in the bank. As a result of it hold money in a bank as an investment is a far away unprofitable.
How to earn more than banks interest?
Since we will invest in PAMM account (money manager – trader), we need to identify its parameters which suites for conservative strategy.
The popular opinion is that money manager should hold at least $3000 in the fund (fund trading account). However, we do not agree, and we will explain why.
The world is full of successful traders who start with a low deposit. You will find that is not necessary to learn trading with big money in our previous article. Hence, trader interest is to gain fund balance as much big as it suites to his trading strategy and willingness. Why is it necessary to obtain high fund balance? It is directly assigned to have low risks. It gives bigger profit. Money manager earns the commission from profit, only. It is deep in his interest.
What parameters show us that PAMM account (trading strategy) is conservative?
There are some of the most importance: strategy lifetime, last year profit, maximum loss, the average leverage, the fund balance. And the most important is a graph of profit.
Strategy lifetime – how long trader is active in the market.
Last year profit – it conservative it should be counted us long period investment.
Maximum loss – recommendation, no more than 25%. An exception is allowed.
The average leverage of money manager cannot be over 25.
The fund balance prefers more than $50 000 at least.
Why are we not talking about aggressive investment? Our purpose of this site is to show the way of profitable and harmony incomes ways. Aggressive investment suites for gamblers only.
However, we do not want to convince you. The choice should be made by yourself. Given example is for conservative investment only.