Financial markets give you the opportunity to earn money not only on your own, but also by investing money in promising areas under the guidance of professionals. An excellent tool is investing in a PAMM accounts.
Features of the procedure for investing money in a PAMM account
The strategy for making money here works as follows: a trader opens a PAMM account, to which investors transfer money. All funds on the account participate in trade transactions. All statistics of trade operations are publicly available.
The total monthly income can be as high as 10%. From here, the investor receives 20-30% of the income.
The number of investors in one PAMM account is not limited. For example, about a thousand individuals contribute to profitable PAMM accounts.
This way of earning money is becoming more and more popular every year. It is not surprising that investing in a PAMM accounts was recognized as the best investment product of 2019.
It is very important to choose the right manager. There are a lot of PAMM accounts, so a rating of PAMM accounts was formed for a more comfortable search. There are a number of criteria by which the professional qualities of traders are assessed.
It should be borne in mind that large deposits are accompanied by the risk of loss of deposit savings. The responsibility for choosing a trader lies solely with the investor.
There are two most common strategies:
Aggressive strategy.
Investment of large funds with high risks. In this case, the investor pays attention to the prospect of getting fabulous profits. Accordingly, in this case, it is recommended to pay attention to aggressive PAMM accounts.
Conservative strategy.
If you want to minimize risks as much as possible, you should choose a manager who adheres to a conservative trading strategy.
There is a very small line between these two strategies and it is far from easy to understand which account is conservative and which is aggressive. What unites them is stability. The most important thing in trading is to avoid shocks. Transactions should be made without sharp jumps in quotes. We advise you to choose a PAMM account, where the monthly profit ranges from 3% to 10%.
Before making a final decision, be sure to analyze the PAMM account’s profitability graph. This will help you understand which strategy a trader is using.
Features of choosing a PAMM account
Please note that creating an investment portfolio is a very demanding task. Be sure to pay attention to the following:
Operation period
Please note that the account to which you plan to entrust your money has been working for more than six months. It’s no secret that it is better to trust experienced traders with your savings. Plus, it is quite problematic to analyze a recently opened account, due to the insufficient amount of input information.
- Profitability
Remember – the income from the account must first of all be stable, not high. Aggressive accounts do not last long due to their high riskiness.
- Losses
Be prepared to incur some losses anyway. Your main task is to ensure that the risk of drawdowns is minimal. The number of drawdowns should not exceed 40%.
Total profitability of PAMM accounts
The peculiarity of PAMM accounts is that they have no restrictions on profitability. There are accounts that yield 550% per month, or 130% per day. However, it is important to understand that investing in such accounts is very risky. As a rule, the “validity period” of such accounts is short, therefore, in the coming months they suffer maximum losses.
“PAMM service is becoming more and more in demand every year. It is not surprising that in 2019, investing in a PAMM account was recognized as the best investment product”
In the case of aggressive PAMM accounts, investors generally practice the strategy of short deposits. This implies that they purposefully make a contribution to this kind of account, and then, after a short period of time, fix their profits without waiting for a drawdown. Then, the investor repeats this procedure, only using a new account.
“Compared to bank deposits, the profitability of PAMM accounts looks more attractive”
The profit received from PAMM accounts depends to the greatest extent on the number of investments. But again, we return to the fact that such investments are accompanied by great risks. Again, the best way to minimize risks is to create an investment portfolio for yourself. Simply put, if you invest money in 10 PAMM accounts, even if 3 of them turn out to be unprofitable, the remaining 7 will still lead you to a total plus.
The procedure for depositing and withdrawing funds from a PAMM account
Before proceeding with the operation of the selected PAMM account, you must go through the registration procedure with a broker, and then replenish your personal account.
The withdrawal of funds is also done quite quickly. To do this, you need to fill out an application indicating the required amount. The amount is transferred to the client’s personal account within 24 hours. After admission, the investor has the right to dispose of them at his own discretion. For example, transfer them to other PAMM accounts or to your bank card.
Control of money transactions on a PAMM account
A conscientious broker guarantees the quality of the services provided. Conducting inspections are absolutely commonplace for brokerage companies. There are many audit organizations and consulting agencies to analyze the financial activities of these types of companies. The main purpose of checks is to identify cases of fraud. During the audit, an analysis of key indicators is carried out, based on the results of which a final conclusion is made about the reliability of the service. As part of the check, they study:
- Reliability of information about the status of managers, based on the documents provided.
- The correctness of the indicators posted on the broker’s website.
- The total number of clients who have invested their own funds with their classification according to different criteria for displaying a PAMM account.
The examination will show the transparency of the work, as well as the reliability and accuracy of the data posted on the broker’s website. During the audit, the procedure for investing funds in PAMM accounts can be monitored.
