There are ads all over the Internet and late night television that touts the best way to have success in the forex market. They will tell you that swing trading, the London Rush method, multiple robots, and purchasing never failing signals are your way to financial prosperity…DO NOT buy into this. There are a number of ways to make money in forex, but the only way to keep it and keep moving forward is through proper private investment management…Also known as money management.
After working for and discussing trading methods with many traders, I came to realize that not all traders were created equal and that this is a major concern for anyone that is trying to decide on a forex trader to handle their money. In fact, it’s best not to have them handle your money at all, but that will be in a follow up article. For now though, let’s focus on what to ask the trader.
I am going to start this assuming that you have already checked out the traders references, looked at their trading history charts as proof that they can indeed do what they say they can, and now you feel good enough to let them trade your money. The first and most important thing to listen for is how they handle emotions and how they trade your cash. Portafina Website
Any trader worth his or her salt is one that is a low key, not real excitable, bore to be around and talk to kind of person. The reason for this is because a trader that gets excited is one that relies on emotion and you do not want “feelings” to get in the way of “facts”. You want a trader that looks at the trade as a job and not an adventure.
The other aspect is the actual money management. You want to find a trader that never invests more than 1% of your money on any given trade. This means that the ceiling for you to make money is wide open, but the chance of a bad trade hurting you is minimized in a big way.
The forex market is a great tool for making serious money, but the avenue to make that money relies heavily on choosing the right trader and especially one that understands private investment management.