Where and how to place your money is a very important question for any person who has it. As a rule, only a placement of money can be considered successful, which implies the fact that it will multiply, and you can withdraw it at any time when you want it or when you need it. As practice shows, there are quite a few such options for investing money. To carry your money on a deposit with a bank today is no longer as relevant and it is no longer considered as an option of storing and increasing capital for several reasons:
due to the small size of annual interest;
due to the fact that inflation eats up almost all accumulated interest;
due to the introduction of laws on the collection of taxes on deposits.
In such conditions, people begin to look for alternative options for investing money.
Of course, many dream of becoming a professional trader and get millions without leaving home. But not everyone can understand all the subtleties and nuances of the market and withstand incredible psychological stress while keeping positions open. But do not give up if you do not get to trade on your own. To do this, there is the option of investing money, which is called trust management.
So what is trust management?
Based on the current situation, the breadth of trust management has now spread very much and covers not only assets in the well-known forex market, but also professional management of real estate, various financial instruments, securities, such as stocks, bills, bonds, enterprise capital, and business management. . Necessary conditions and options for the interaction of the two parties to trust management, such as commissions paid to traders, management terms, assets under management, are specified in advance in the contract, which regulates all possible nuances and arising controversial issues, and serves as a protective mechanism for the principal.
If you have free cash, but there is no time or just the desire to learn professionally, to earn in the stock market or in the Forex market, then you can invest your money, giving it under the management of professional traders who have extensive experience.
Before you enter into a trust management agreement, you must become a client of a brokerage company. For this, the following activities are being implemented:
The contractual relationship with the broker (dealing center).
Register and open an account.
Connecting to the trading terminal.
Since this type of investment is considered the most profitable and can bring up to 50% per annum, the risks are significant.
Minimizing the risks
Let’s consider the main risks that arise in the process of trust management:
The risk of losing part of the invested funds. No one guarantees that you will get a certain yield. You can only say the approximate profit. In this case, partial or full drawdown on positions is possible, as a result of which you may lose some of your money or, in the worst case, all the capital.
The risk of an unfair manager. It also happens that after transferring money to the account, the manager stops responding to calls and questions. And then it turns out that you have nothing left in your account.
Human factor. The manager may, for example, get sick and be unable to complete the transaction.
So what should the readers of MirSovetov do to minimize all possible risks and reduce them to zero? To do this, you must follow the following simple rules that will help you to insure your capital from possible loss.
To limit the risk, go to the choice of trustee extremely responsibly. Do not immediately respond to tempting advertisements. To begin to devote some time to finding really the company that has been operating in the market for a long time, and has proven to be reliable. Remember that those companies that lure sweet interest, obviously cunning, hiding the possibility of losing some of the capital. The main thing to remember about the ratio of “risk-return”. It states that the higher the potential return, the higher the potential risk. Therefore, when choosing a professional manager, focus primarily on his reputation.
To limit the degree of risk, a parameter characterizing the maximum amount of loss is indicated in the trust management contract. Most brokerage companies entering as trustees agree on a risk of at least 15%. In the event that the amount of loss recorded at the end of the trading session exceeded the contractual amount, the managing broker will reimburse the client for its loss.
To discuss in advance the tactics and strategy of investment, so that the manager can select the maximum suitable tools for investing money (as conservative or aggressive as possible). This is due to the fact that people react in absolutely different ways to a possible risk.