subject: PERFORMANCE - THE MORE YOU MAKE THE MORE YOU RISK! [print this page] If you see adverts on the internet from traders reporting to make 80% a month, you have to ask yourself what are they risking to achieve this? Most people will see 80% a month and get greedy and not bother asking any proper questions and instead just fund their account as quickly as they can hoping to see their account balance grow by 80% that month.
The reality is very different, as to make 80% a month the risk would be huge. Your account will be in grave danger of being blown all together! If someone is making 80% a month they could on the flip side just as easily lose 80%! Or perhaps even more. If you lose 80% of your account balance, you have almost no chance of ever recovering your loss, as to make 80% back you have to make much more than this because of the negative compounding affect.
Be realistic with your goals. Some of the top elite traders in the world make 10-20% per month, so if anyone is claiming much more than this, then beware! Its just common sense really, however all common sense seems to go out the window when greed kicks in!
SEGREGATED ACCOUNTS
This was mentioned before in this report - But what does this mean in reality? It is
very important when doing your due diligence that you make sure that the forex
broker has segregated accounts. What this means is that the forex brokers corporate
accounts are segregated from the client accounts. So in the worst case scenario
should the broker go under then the liquidator will come in and still be able to give
you your money back since your money is separated from the company money or
debt.
As stated before ECN/STP forex brokers make money via commissions so they are
cash rich and are highly unlikely to go down. But it is always a good idea to cover all
bases and remove yet another layer of things that could go wrong.
PERFORMANCE - THE MORE YOU MAKE THE MORE YOU RISK!
