PAMM Accounts: Anyone Can Make Money
Are there any opportunities to make stable profits without major risks? Yes, there are. One of them is Forex. The daily turnover is a couple of trillions of dollars! Even though Forex trading is relatively risky, there are certain instruments that can reduce the risks.
What if you want to invest in Forex but have no time to learn how to trade Forex efficiently? Well, you can always trust your money with professional traders managing PAMM accounts. They will make money for you.
PAMM Accounts: Essence
Percentage Allocation Management Module (PAMM) represents a service where investors trust their money with a professional manager to trade for them. They form a money pool, which will be used as trading capital.
With PAMM services, you can make money without specific trading knowledge. However, to secure your funds, you will have to find a reliable and skilled managing trader.
Investing in PAMM accounts is less risky than trading bonds, stocks or other assets without specific knowledge and experience. It allows investors to make stable profits provided that the managing trader is a genuine expert in trading capital markets.
Example
To clarify the situation, we will consider the following example. Let’s assume that the managing trader’s offer implies even distribution of profit (50/50) between you and him (the distribution may vary for every individual manager). You invest $1000, Mr. Johnson invests $2500 and Mr. Anderson adds $3000. The managing trader also invests his $2000 to the money pool.
1 000 + 2 000 + 3 000 + 2 000 = 8 000.
Now let’s assume that the manager earned +10% during the first month. This is $800. The money is distributed proportionally: 100 + 200 + 300 + 200 = 800. However, each investor should pay the trader 50% of the profit. Therefore, the trader gets $50+$100+$150+ his own profit = $500. Therefore, his work is rewarded while you get the remaining 50% of the profit without doing anything.
But don’t be scared by such a high fee. More often than not, investors get 70-80%. That’s a good yield for doing nothing except trusting your money with a professional manager.
They say, never put all eggs in one basket. You can apply the same diversification rule to PAMM investing. Just find several professional traders and distribute your investment capital between them to eliminate the risk of losing all your money in case one of them goes broke, which is hardly possible if the trader sticks to a conservative approach.
Where To Find Professional PAMM Managers?
This is probably the key question we should answer. These days, there are many PAMM services on the net. More and more Forex brokers start offering their PAMM services (Market Leader has a lot of articles dedicated to them). One of them is panteon-finance.com.
Prior to investing your money in PAMM accounts, please, make sure that you risk only the money you can afford to lose. And once again, diversify your risks by investing in multiple accounts run by conservative traders (You can choose aggressive traders, if you are a risky guy and prefer a riskier but more rewarding trading approach ).
