Forex trading is quite time consuming. If you have been trading foreign for a while and you no longer have the time then you may be considering handing over your investment account to a professional who would handle it to the best of your expectation. Forex trading is quite volatile but not as volatile as other markets.
You have to carefully monitor entrance and exit points or else you can suffer a substantial loss. This could be frustrating. Be that has it may you can have someone monitor it for you 24/7. This kind of arrangement whereby you entrust your trading to someone else is called a managed trading account. If you are otherwise new to Forex trading and not familiar yet the trading skills, you may not want to risk handling the trade because poor knowledge of trading can result in huge financial losses.
You need to know the market dynamics to trade effectively. While learning you could set up alongside a managed Forex trading account. You can now then watch as the professional trades on your behalf learning from the way he makes his judgment over predictions of market trend. Turning over your trading responsibility to someone else is quite a big risk also, because you can only judge based on the demonstrated ability of the trader to make profits on your trade.
Well, I think it's a better risk to take but it's quite a hard decision for other some other people. You are still safer with your hard earned money in the hands of a professional than to gamble with your floundering knowledge of the trade. One good reason why managed trading account is advisable is that the professional has all his time dedicated to watching the trade.
If you do it yourself there is no way you get this kind of opportunity. Besides the professional have someone watching for you 24/7. If you do it yourself at least you will need to take a rest or sleep. Because the management of most of these managed Forex trading works very closely with the banks or are even owned by banks themselves, they are privy to up to date information on currency exchange rate and will be informed long before any other private investor.
Managed trading accounts are not for small investors and this is very disheartening for such investors.
They require minimum investments range from £10,000 to £20,000. This is a discouragement to many who would have opted for the choice of managed trading account.
Even those who can afford to invest that much are scared of the possibilities of the management company making wrong decisions or folding up due to mismanagement of investors' money or errors in judgment. Therefore it is always warned that you should not invest more than you can afford to lose.