As I said, this web is not about reviews of forex managed accounts, but looking the behaviour of many managed accounts and also the behaviour of the investors we can understand why so many people still continue to struggle to make money in this kind of investment.
Understanding THE CONCEPT we can avoid to make the same errors and finally begin to make profit, STABLE profits.
As I like talk about real world and so real accounts and as seen the Forexboys account is so popular we just talk of it just to take an example.
By the way there are funds that are more dangerous than this because you risk more than 50% of the account.
The point is : If you're loocking in a fund just for the profit that promise you wrong!
You must look at drawdown because usually when you lose a lot of money you lose CONFIDENCE and TRUST in the fund.
So this is the tipical behaviour of:
1 – The majority of funds
2 – Of the Investors
We talking about Drawdown Cycle : Lose Confidence
Drawdown ( Click on the pictures to enlarge )
Link for verification purpose:
Many funds make some profits for some months and suddenly happens the drawdown, in this case not a big drawdown, other accounts suffered of around 35%, because there's also the broker variable.
Many accounts burn the profit of months in just some hours!
If you have had this experience (like me time ago) you know already how you feel:
I lost money again! Now I will look for a better fund……
This " Cycle " of investing can take you in an infinite circle where at the end you will lose money, time and confidence.
What you can do?
You have to find some trusted funds with a low drawdown!
In this way you will really STAY in the fund as long as possible and not risk a lot of your hard earned money.
Investments must be a marathon not a sprint.