The dangers of trust management and methods of combating them.

Most people with spare cash want to invest it profitably, while also devoting less time to the investment.

One suitable option is trust management . The investor simply selects a manager and then receives a percentage of the profits from trading on financial exchanges.

It might seem like a no-brainer, as profits can sometimes reach 30% or more per month. However, trust management carries a significant risk, which every investor should be aware of.

1. More money means more risk - the greater the profit you see in the manager's account statistics for the day, week, or month, the riskier their trading strategy. Trading Forex with a consistent profitability of 1000% per annum is simply unrealistic. While there's a chance to double or even triple your deposit in a month, one mistake can completely wipe out your initial capital.

Therefore, if you decide to invest in a management service, choose a trader with an average profitability of no more than 15% per month.

2. Don't trust newbies - the younger the manager's deposit statistics, the greater the likelihood of losses and drawdowns. A less risky option is to invest in a management service with a history of at least one year.

To attract investors, young accounts may offer a more favorable profit sharing percentage, but in the pursuit of profit, you can also lose your own capital.

3. It's easier to lose other people's money - if the manager's account doesn't contain any personal funds, and trading is conducted exclusively with investors' money, such an account is a prime candidate for loss. A trader doesn't risk their own money and may act insufficiently thoughtfully and cautiously.

4. Reinvesting profits - by investing already earned profits into trading, you deprive yourself of a second chance. It's best to withdraw profits and then reinvest them into another manager's account, thus diversifying your investments.

large brokers can guarantee profits . Don't trust your funds to brokers with a dubious reputation.

Overall, trust management is a fairly attractive investment option; the main thing is to consider all the recommendations above.