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How does PAMM investing?

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How does PAMM investing?



The basic principle of RAMM (abbr.. percentage Allocation Management module for managing the distribution of percent) account is the duplication of the trader (trading items) on the mass of investors. A simplified scheme of work is as follows: trader contributes to the special account a certain amount of their money (say, 1000$) and over a few months (3 or more) trades on these tools. If the trade is profitable, this account becomes a PAMM account - it is available for attachment of other people (not traders). That is, driving someone else's funds, the trader risks in the first place their money. The ability to withdraw money investors PAMM investing trader unavailable - Manager only works on the account with their means, and the program duplicates of his deal at the right percentage of each Deposit to the investor. Furthermore, if the Deposit is not increased, a trader as an investor will not receive remuneration. This benefit PAMM investment for the investor. The investor does not trade for profit he needs only to transfer their money management.

Advantages PAMM investment for those who wish to increase their capital, the obvious:
1. simplicity and convenience (opened an account, chose the control (-), transferred money, and made a profit).

2. the choice of the control (analysis of trade statistics - time and the gains from trade, initial capital, and so on).

3. the possibility of diversification of investments (portfolio PAMM accounts, for example, 80% of the funds to invest in 2-3 accounts with reasonable trade, the remaining 20% in aggressive traders).

4. limitation of risks (selectable threshold security for account - for example, the allowable loss in trading can be no more than 20%. Thus, the investor can always be sure that you will not lose all of the invested sum of money, in the worst case the loss of only part of the funds.)

5. capital protection (control cannot withdraw money investor, he only receives a portion of profits from successful trading. However, managing most interested in profitable trade - no profit, no interest.)

6. the possibility of starting with the minimum amount. Many Forex brokers allow you to use the service PAMM investment, starting with 30-100$, which is ideal for a novice investor. Restrictions on the maximum amount of or not, or it is large enough (1 000 000$, for example).


The Manager is not so important, what is the value of investments - the software automatically calculates the size of trading positions, allowing the trader to fully focus on the trading process. Similarly, with a reward at the end of the trading period is complete automation.


A very useful feature is the possibility of direct communication with the managing trader selected PAMM accounts on the forum. You can ask question related to trade risks, fact strategies, etc. that increases the confidence of investors. This feature not implemented in all cases, but there are many Forex brokers (for example, Alpari).


Another advantage of growing popularity is the ability to test PAMM investing in mode demo (also available from Forex broker Alpari). That is, the investor invests a “virtual” money and keeps track of statistics. All completely identical to a real investment, but without the risk. When getting good results after, say, the month, the investor makes a decision to invest a certain amount of real money.


What is the risk of losing money when PAMM investing? There is a risk, since we are talking about the foreign exchange market, i.e. profitable (from 15% per month), but higher-risk investments. On the other hand, correctly allocating funds to several PAMM accounts, you will significantly reduce the possibility of losing money. In addition, do not forget about the threshold security that is guaranteed will not allow the trader to lose the entire amount. Investing money in several PAMM accounts with different trading strategies, already after a few months you can double your money, then the risk will be equal to 0.


As you can see, PAMM investing a great way to multiply your savings. You only need to determine the amount of investments and to choose governors, diversifitsirovav their investment.


A good investment!



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