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Sunday, 7 April 2013

Why The Minimum Investment Should Be Low?

So why should the minimum investment be low I hear you ask? I believe that in general people are skeptical when it comes to investing and for good reason. The financial world has gone through an unprecedented wave of corruption in recent years. 

The most famous one being Bernard Maddoff who created a Ponzi scheme so large that it makes the eyes water. He created such an illusion around his fund and made it seem impossible to invest unless you were in his inner circle. This mystique surrounding his fund created huge demand from some of the biggest celebrities from around the world who begged him literally to let them in to his fund so they could invest.

Sadly everyone lost their money including some very large charities.

Forex is also full of manipulating and greedy dealing desk brokerages trying to deliberately stop you out if price nears your stop or expand the spread on your exit so you can't reach your pre-set target! Dealing desks are notorious for this.

So my point is that if you have a genuine offering you should let people test you out first so they can build their confidence in your service and by having a very low minimum they can do this safely.

I don't understand anyone that has their minimum entry set at 100k+ as this means that you will put people off using your services, as they can't test you out and build confidence without a high risk. No one wants to lose money but most people would survive a 5k loss and not many would be able to sustain a 100k loss×¥


he key to look for when choosing a managed account is transparency. I believe you should not hand over your money to anyone because in reality you have no way of tracking the true results as in the Madoff Ponzi scheme.

The better option is to have a managed forex account. This means that the money actually stays in your own trading account but you allow a professional to trade it via a limited power of attorney. You split the profits with a professional and this gives the professional incentive to make you as much money as their skill set allows. If you test it out with a low minimum investment first then you can be sure that the professional trader is making you money before you increase the size of your investment. This way you will not lose your shirt!
 

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