Dangers of trust management and methods to combat them.

Most people who have free money want to invest it profitably, and at the same time devote less time to the object of investment.

One of the suitable options is trust management , the investor simply chooses a manager, and then receives a percentage of the profits from trading on financial exchanges.

It would seem like something to want because the profit margin sometimes reaches 30% or more percent per month, but it is trust management that has a fairly high risk that every investor should be aware of.

1. More money, more risk - the greater the profit you saw in the manager’s account statistics for a day, week or month, the riskier his trading strategy.

It is simply not realistic to trade on Forex with a constant profitability of 1000% per annum. Of course, there is a chance to double or even triple your deposit in a month, but one mistake can completely deprive you of your initial capital. Therefore, if you have already decided to invest in trust management, then choose a trader who trades with an average profitability of no more than 15% per month.

2. Do not trust newcomers - the younger the manager’s deposit statistics, the greater the likelihood of losses and drawdowns.

A less risky option is to invest in a trust account with a history of at least a year. To attract an investor, young accounts may offer a more favorable percentage of profit distribution, but in the pursuit of profit, you can also lose your own capital.

3. It’s easier to lose other people’s money - if there are no manager’s personal funds on the account, and trading is carried out only with investors’ money, this type of account is the first candidate for loss.

The trader does not risk his money and may not act sufficiently thoughtfully and carefully. 4. Reinvestment of profits - by investing already received profits in trading, you deprive yourself of a second chance, it is best to withdraw the profits, and then reinvest them into the account of another manager, in this way you will diversify your investments.

large brokers are guaranteed to make money .

Do not trust your funds to brokers with a dubious reputation. In general, remote control is a fairly attractive investment option; the main thing is to take into account all the above recommendations.