New Post has been published on Trade Genius Group
New Post has been published on http://www.tradegeniusgroup.com/too-many-brokers-not-enough-successful-traders/
Too many brokers, not enough successful Traders
Perhaps the only way is a low risk asset management approach to the FX-Indices World?
The TG Group has for a long time now felt that the amount of brokerage firms in the industry these days is becoming an issue. Where to trade? Who to trust? Similar offerings and with no edge. Sound familiar to you? That’s because it is. In spite of the overpopulated brokerage industry there are a few benefits to having several brokers as opposed to trading with one. For example, spreading your capital amongst several safe brokers is a sensible approach just in case one broker provides better rates than another and at different times in the market. For example one broker may have better liquidity on the EURO and trading during the Euro session, whilst another might work with a better supplier for Yen and during Asian Market hours. Another benefit of spreading your capital between brokers is to avoid the unlikely event that any one broker should go bust. If you do your homework correctly as the Trade Genius Group do, you will only trade with UK FCA Brokers. This license guarantees a certain amount of your capital is protected from company bankruptcy (around 50,000 GBP we believe) according to FCA rules and regulations and under MIFID for account segregation.
Today, almost any old Joe can open up his own Forex Trading Brokers thanks to the many B2B or turnkey solutions out there on the market, which also includes white labels. Whether they do it well is another set of questions with relevant criteria all together. In addition to brokers there are an unlimited array of largely “unsuccessful” trading products such as social trading or copy investing tools and techniques to captivate the minds of aspiring, but still amateur traders. We refer to these products or services as “unsuccessful” merely because the very notion of copying amateur or aspiring traders is on the whole an irrational concept and in most instances clients end up…you guessed it, unsuccessful. Surely the idea is to copy professional and qualified traders is it not?
Arguably the attraction of the many brokers and their trading products, from hi speed robot trading to social and copy trading stem from the desire of the masses to get rich quick. Indeed there are many get rich quick services and products available out there both on and offline, but something about the way financial trading products market themselves tends to make people feel safe.
Are you safe? Is this case of high risk and extraordinary large and fast returns in financial markets just a fallacy? We will let you answer that question yourselves, but the real issue at hand is not whether you are safe or not, but rather DOES IT EVEN EXIST? Is there such a trader or system out there on the market than generates constant high level of returns year after year or even week after week for that matter? What defines a high level of return will ultimately depend on the level of risk associated with the downsides (and can be subjective), but safe to say most products offering higher than a few percent (%) have some sort of additional risk involved. Seemingly, the higher this return gets the more risk there is likely to be, to the point where is becomes pot luck.
The Talent is in the Trader
Perhaps the art and true talent of the industry is thus truly within the skills and talents of the trader’s .By traders we are referring to professional traders who have endured the highs and lows of trading experience both on a corporate and individual level. The traders that hold the key to this talent of which there are few, know the true value of good risk management and its powerful edge when used to make sufficient financial and above average returns. Many such traders are now able to leverage modern technology to offer managed forex accounts Yes! There will always be risk, but if a trader is looking to return anything from 20-30% per annum there is a safer route to embarking on such a journey and equally a not so safe route that others might foolishly take. So question the next trader who boasts of making 100% returns every month and ask yourselves how he is compensated, before you hand him over your wallet. At the very least be sure he is earning a profit share on the amount of profit he earns you.
The irony of the online trading market is that clients, investors and emerging traders alike, would all rather make $3,000 annually from $1,000 invested at high risk, as opposed to making $3,000 from $10,000 invested. Surely this is irrational? As in order to make $3,000 from $1,000 you would need to make a return of 200%. As long as our team has been around the asset management industry we have yet to discover a fund that makes 200% return year in year out. If this is the case, then why invest in yourself or in an amateur fund or trader boasting of such astronomical returns. Perhaps it is alright if you fancied a gamble, but when it comes to making money – the real funds know how to keep risk-return at consistent lows and provide long term performance. In reality, you have more chance of earning $3,000 in a year on $10,000 deposited (30% return) than earning $3,000 in a month or year for that matter on a $1,000 deposit. Give it some thought…
In general it seems plain and simple that the struggle in the online financial industry is not really about finding a good broker or seeking out a new get rich quick financial product, as these issues seem to have been overly addressed in any case. The real struggle is about being able to find those few good traders out there with professional, profitable and consistent experience. Once you have found them, the question then arises as to how you will get them to manage your capital in a safe UK FCA environment when his minimum is typically $500,000. We won’t give away the punch line but it is somewhere within our Trade Genius Group Community Blog.
