Never trade in a managed account in the forex market
When the new traders open a Forex account, they most of the time cannot find the time to manage that account. They give that accounts to their brokers to place for them. When the brokers make money on that account, they take a profit from their trade. It is known as the “managed account.” When you give the control of you Forex account to your brokers to trade in your account, it is being managed by another person. In managed account, most of the people think it is better to give the brokers to handle the account. The brokers are experienced, they know the markets better than other traders and also they will get a profit if they can make money in their managed accounts. But there are some problems in the managed account. It is not that the broker will take your money, but in a managed account, a trader lost himself and his skill in the trading.
Why should you not trade in a managed account?
There are hundreds of reasons why you should not trade in a managed account. If you look at the professional forex traders in Singapore then you will notice every single one of them are trading the financial instrument with the reputed brokers like Saxo. They simply ignore the managed online trading account .Here are some reasons for which you should not use this.
It is your own money: people do not invest in Forex to let others place a trade with their money. If you search the websites, you will find that there are no single people in the forex industry, who lets others place their trade in the account. If you are a busy trader, a professional investor, you can open managed account for you in the Forex. But your broker may give you less money. It is better to trade with your own money. If you are not experienced, it is alright. The professional traders of today were also new traders once upon a time. When it comes to money, it is better you alone handle your money in the Forex and execute order trades in your online trading account based on your own technical analysis. But if trade with the help of others then chances are very high that you will lose money and learn nothing in the market.
Brokers can lose also: The brokers are very busy with managing their own business in the Forex. Also, they place their own trade in their account. When the traders give the account to place trade for them, the brokers can easily place a trade and lost your money. You cannot recover the lost money if the broker is placing a trade in your account. If you practice a little in this Forex market, you can place a trade for yourself in your online trading account. You do not have to open a managed account.
There is no one in the forex market who can ensure you 100 percent profitable orders. If you look at the professional traders then you will notice that even they have many consecutive losing orders in themarket.SO always trade with proper risk management factors.
Summary: There are many different things that you need to consider in order to become a professional trader in the financial industry. If you think that it’s better for you to trade the live assist with the help of other professional then you are completely wrong. IN order to make money in the financial industry you must use your own trading system in the market and execute the trades by following proper risk management factors.