It almost the end of the year and as markets notoriously tend to be void of much liquidity during the holiday period it’s a time of reflection for most traders. Around the world traders are tallying up their respective annual totals to see how they performed this annum. For most investors it’s a brutal reality check whilst others may not be deterred and are hatching plans of attacking the market in a different way, maybe more disciplined, maybe a change is strategy? What is the magic ingredient for a recipe of success for 2019?
One thing that all experienced and successful traders will tell you is that risk and reward must be handled well. It is the key to a healthy growing trading account. Negate a degree of risk through diversification and you may notice a difference larger than you would think by year end 2019.
Managed accounts are a way to put some expert skill into driving your portfolio. With billions being managed on a global scale from the largest commercial financial entities to the small trading floors, the competition is rife and variety in abundance.
Let’s look at some of the key benefits to a managed account whist also noting some important information before selecting the service that you may opt for.
Time: Time is money as the old saying goes! Scrolling through charts, highlighting the tradable instrument and appropriate strategy selection as well as execution can be cumbersome work. Especially when trading or managing your money is not your primary income. As a seasoned trader I can say with absolute conviction that if you have not devoted the appropriate time for analysis then you are planning to fail miserably. So, if you have not had the success you had expected this year ask yourself if you really devoted ample time to understand the charts, the traded instrument, the economic conditions and fundamental econometrics? If not, then it may be that you need to outsource some of your fund to somebody that will devote all their time on keeping you in positive territory. If you have had success whilst putting the man hours in, then it still would be wise to segregate some of your fund into a managed service, some of the best traders/investors in the world do it so why not you?
Risk and Reward: The obvious statement that diversification of the portfolio reduces market risk, rings true when chopping your fund and delegating to a seasoned professional. By not taking full liability of risk on the entire fund the account may not be exposed to the wrong trading strategy, process of thought or missed opportunity on a market that you do not specialise in. Also, with the vast selection of managed services available complete with verified historic data and success rate percentage you can intelligently hypothesise how the performance of the account will be.
Experience: There is no substitute to experience on cyclical market behaviour or combined technical and fundamental analysis. Choose your money manager wisely and not only will have a profitable fund churning points into money but you will also can learn from the extensive wisdom of what to trade, how to trade it and why it is to be traded in that fashion. Learn from these gurus of trading and reap the rewards of knowledge as well as a healthy percentage profit.
As always please ensure all due diligence is completed on the money manager that you select including checking a full audited set of results and the safety of your deposit. Be aware of the restrictions and conditions of the account set up particularly paying attention to the minimum holding period, the cost of the structure, (management fee, profit share) and the ease of withdrawal.
At Ice Fx, we are dedicated to providing a clear and transparent system of trading that benefits the client first. If you have any questions in relations to any of our services, then please do hesitate to contact us via our web site.