Trust management is among the popular ways to make money in financial markets. What makes it especially is the possibility to earn without having to dive deep into the intricacies of the trading instruments and spend precious time on it.
Essentially, the investor invests money in a professional trader who knows how to maximize the capital in financial markets. For this, the latter receives the profit percentage.
1. Trust management: Risks and benefits
2. Trust management and PAMM account
3. TIMA account: Sensible risk management
4. What is the benefit of capital trust management in TIMA accounts
Trust management is one of the popular ways to make a profit, where money and a professional trader work for you while you can sit back and relax. The trader knows how asset markets work, is able to spot profitable opportunities to make winning trades, thereby increasing the account balance thanks to the positive outcome of the deals.
Trust management is beneficial for those who also wish to make a profit in the currency, commodity or stock market but lack the necessary knowledge, skills, time to trade or all of the above. This is what makes trust management such an excellent option for the investor since it helps save time and effort. Meanwhile, a manager who is capable of making money in the financial markets benefits from this cooperation as well by receiving the profit percentage under the contract.
That being said, activities in financial markets risks go hand in hand. Any trading strategy involves both winning and losing trades. A trader, whose trading strategy and capital management system allow making more money than losing it, is considered profitable.
Ideally, every trader must have his/her own risk management system and follow it religiously. That being said, there is a psychological factor that can sometimes get in the way, resulting in unreasonable losses. Controlling the emotional aspect of the trader’s operation poses certain challenges.
What this means is that the investor cannot be fully protected from losses even when cooperating with the best manager since every trader faces drawdowns every now and again.
Before listing ways to avoid or keep risks to a minimum, let's see what a PAMM account is all about. This is one of the most popular ways to invest in the market, whereby the investor gets connected to the account of a professional manager.
With this account option, the trader's deals are automatically copied to the investor's account. The total trading result allows increasing the investment account balance, provided that the manager makes profitable trades.
Trust management of the capital is particularly handy when it comes to the PAMM account because this is an automated service. Plus, you can invest even small amounts. Hiring a manager to trade manually with your account is a more complicated task since you will still have to find this person. Plus, the amount of money that is accepted for management typically consists of four digits. With PAMM accounts, you can start out having as much as a few hundred dollars.
Trust management with this account type allows applying the diversification principle. You can choose several managers whom you allocate your money to using this service. By not putting all your eggs in one basket, you will be able to minimize risk.
That being said, as we have previously established, investing through trust management is associated with risks. When choosing the PAMM account, you will be able to see the trader's yield curve.
But the fact that this trader made profit earlier is no guarantee that he or she will do so in the future. You cannot know for sure that this very trader manages the risks well, whether at some point he/she won’t violate the rules of the trading strategy and face a major drawdown.
With this in mind, Gerchik & Co went further when creating a trust management service and brought together the advantages of a PAMM account and a clear risk management system. For one thing, all of the managers have access to Risk Manager. This is a software, where the traders can enter parameters of their own capital management strategy to protect the account from losses, regardless of the manager’s mental state.
Aside from that, you can set a threshold of losing trades per day or week, limit on an entry volume and the maximum risk size. Risk Manager allows eliminating the emotional factor, helping to protect the trading account. The investors who intend to entrust the TIMA managers with their money can check out risk parameters beforehand.
So, with the TIMA account service brought to you by Gerchik & Co, you can invest money safely and mitigate the risks. Keep in mind that a managed risk in financial markets is one of the key preconditions for a solid profit.
1. The system is automated. This is what makes the investment in chosen TIMA strategy so easy from a technical standpoint.
2. You don’t need a lot of money to get started. You can invest, having as much as $ 100.
3. Wide selection of professional managers to choose from. Gerchik & Co has come up with a handy TIMA Account Ranking where you can learn about the strategy, investment terms and conditions, profit distribution, and maximum risk of each managing trader.
4. Diversification option available. You can pick several managers and allocate your capital between them. This is another method to mitigate risks.
5. It saves your time and does not require extensive knowledge of financial markets. You do not have to keep a close watch on the market and understand where the price will be headed next. Essentially, this is the managers’ task, for which they receive a profit percentage.
6. Risks are under control! With Risk Manager, the emotional factor is eliminated and the investors' money is thus protected.
By opting for the TIMA service, even those who have neither the necessary knowledge nor the time to trade on their own are able to make money in the financial markets.
PLEASE NOTE:
Make sure to carefully read the Manager’s Offer before investing. If you do not agree to certain terms and conditions, pick a different TIMA account.
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