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Comparison between Managed account and Self trade account

  • Post #1
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  • First Post: Dec 31, 2005 10:28pm Dec 31, 2005 10:28pm
  •  AWIE
  • | Joined Dec 2005 | Status: Pips Hunter | 249 Posts
i just want to know what is the pros and cons between this 2 account.
Do managed account have low risk?.. considering we have to pay to them sum amount.

awie
"A smooth sea never made a skilled mariner"
  • Post #2
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  • Jul 4, 2007 5:05am Jul 4, 2007 5:05am
  •  forex5x
  • | Joined Dec 2005 | Status: Member | 5 Posts
A managed account may or may not have a low risk and return.

It depends on the style and rules the manager has.
 
 
  • Post #3
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  • Jul 6, 2007 6:05pm Jul 6, 2007 6:05pm
  •  gio9
  • | Joined Jun 2007 | Status: Member | 47 Posts
Managed account Pro
1. Hastle free
2. Get the sleep you deserve.
3. Withdraw profits monthly,quarterly, as needed.

Cons
1. If they've been managing money under 2-3 years their system might have flaws they han't foreseen.
2. Everyone hypes up there own managed account. view managedforexreviews.com and review everyone's track records.
3. Hypothetical results are a joke... walk away from it.
4. You can start off the first month with a big negative and it could take 3-6 months to recover from it.

Hope this helps. since i have a few managed accounts..
 
 
  • Post #4
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  • Last Post: Jul 10, 2007 10:13am Jul 10, 2007 10:13am
  •  Calculated Risk
  • | Joined Nov 2005 | Status: Member | 59 Posts
Speaking as someone wiith over 13 years experience managing my own money as well as managing forex on behalf of clients I can tell you the difference is night and day.

  1. Trading is very lonely and boring. If you trade alone your likely to make trigger-happy mistakes simply because of the need to trade
  2. If you lack experience you WILL loose your account within 6 months.
  3. Unless you have a proven strategy you'll experience anxiety and sleepless nights which in turn will lead to further losses.
  4. A money manager gives you someone to blame when things go wrong - which they shouldn't.
  5. A money manager gives gives you the luxury of dong the other things in your life that are your strength and desire.
  6. A money manager, if he's good will have a better chance of repeating succeses - check his trading history.
  7. When you make mistakes, it's not human nature to accept the blame oneself so naturally you'll look for some external cause. This will lead to the innevitable repetition of the mistake all over again.

If you want to go it alone make sure you're the type of person who no matter what, is determined to succeed and are prepared to take losses in the process and perhaps not be profitable for years. I don't want to put you off. A good trader can earn substantial profits but statistically 95% of new trader wipe out their trading account within the first 6 months while all along the broker's been making money on every trade.
If the description above doesn't sound like you, do your due dilligence and find a money manager that fits your investment criteria and risk tollerence.

Good luck

The Market can Remain Irrational Longer than You can Remain Liquid
 
 
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