Originally posted by Jogi

I think you made mistake in choosing a money manager. You must ensure that you choose the right person. His experience + trading history is the most important thing in analyzing performance. If everything satisfies you then choose the person. In this trading history you also know about maximum drawdown. So if that money manager is not loosing below that drawdown level then you must not be worried because it happens sometimes. Maybe it is a very illogical mistake for you, but he is looking at it from a different point of view. If he is a pro then he is analyzing the market much better than you.

In my opinin you must trust him. Just because he made a mistake, you cannot blame him because its Forex where nothing is predictable.

They have not made mistake in choosing the manager. But I think some continuous mistakes from that manager made them think in this way. But you r right that overall performance should be seen and not just particular performance.

Originally posted by Jogi

I think you made mistake in choosing a money manager. You must ensure that you choose the right person. His experience + trading history is the most important thing in analyzing performance. If everything satisfies you then choose the person. In this trading history you also know about maximum drawdown. So if that money manager is not loosing below that drawdown level then you must not be worried because it happens sometimes. Maybe it is a very illogical mistake for you, but he is looking at it from a different point of view. If he is a pro then he is analyzing the market much better than you.

In my opinin you must trust him. Just because he made a mistake, you cannot blame him because its Forex where nothing is predictable.

They have not made mistake in choosing the manager. But I think some continuous mistakes from that manager made them think in this way. But you r right that overall performance should be seen and not just particular performance.

Originally posted by uniquetrader

One of my friends gave his money to a money manager to manage funds. Initially he made good profits as my friend told me. But recently he said that a big loss was made by a very "not understandable" behavior of him. I am writing his feelings about that behaviour of his money manager.

Traders, sometimes, do not understand the price action of the markets. For example a trader is short on a currency because he anticipates a negative news and his expectation becomes correct but the currency behaves opposite of what is expected. You MUST get out right away in this situation. Because at this stage you do not have any idea of whats going on. You can close your trades at much much lower drawdown and simply step aside. A drawdown of around 2 to 3% per trade in such situations is excusable but 10% draw down is a "no-excuse" situation.

so what was the drawdown from that money manager and can you plz tell me when your frind give his account then he make a agreement for maximim

DD for each trade or not if no then dont blame that person blame your frind.

I think there is nothing wrong here with the behaviour of the fund manager or the trader incharge of our capital and there is nothing such as non excusable trading behaviour as there are times when we loose and even the rofessional and good traders loose as well and that is why they suffered losses .

The forex managed accounts do not guarantee a profit, past performance is no guarantee of future performance.

Investing in currencies and financial products to leverage is a highly speculative activity which may result in the loss of the capital. Make sure you understand the risks involved before investing in a managed forex account.

Originally posted by FXlord

The forex managed accounts do not guarantee a profit, past performance is no guarantee of future performance.

Investing in currencies and financial products to leverage is a highly speculative activity which may result in the loss of the capital. Make sure you understand the risks involved before investing in a managed forex account.

 

Yes you are absolutely right as the forex markets are risky and uncertain there is huge amount of risks involved in forex and even a good and experienced PAMM manager can loose in these markets so a trader must invest at their own risks .

However - limiting risk is essential in trading.  If you do not limit risk on your trade you can get sucked into hoping.  Not only do you lose money on that trade, but it distorts your trading and makes you miss other good trades while you are trying to work your way out of a drawdown.  There is no shame in being 'wrong.'  This is a 'best guess' business, not science, not math like others claim.  Remember that the true prop traders out there have a significant advantage over you in terms of capital, order book, spread, inside information, and other traders backing them up.  Not being able to take a loss is ego and shows an amateur trader.

Yeah the behaviour of market is totally unpredictable and we can't able to predict it and we have to struggle a lot to make a good amount of profit and we can learn by doing practice in demo account.

This forex market is just unpredictable and you have to be more careful before you place any order and i think for trading Eur/Usd is the best pair because it has higher fluctuation and we can make good profit.

Originally posted by FXlord

The forex managed accounts do not guarantee a profit, past performance is no guarantee of future performance.

Investing in currencies and financial products to leverage is a highly speculative activity which may result in the loss of the capital. Make sure you understand the risks involved before investing in a managed forex account.

This warning is written in all forex business related websites. All traders r aware of this risk. But very high percentage only wants to look at return and not risk. 

Even if there is high risk, you can lower chances of high loss by risk and money management techniques. Good money managers always follow those techniques.