You may be thinking, this sounds interesting, but what’s actually traded in a managed futures account?  Well, in this article we will answer that question and more.  To make things simple, we have listed the main sectors of the futures industry, and noted the primary markets that are traded within each.  This will give you a fundamental understanding of the futures market, and the popularity of different sectors amongst managed futures traders.

List of Futures Markets

Energy Futures:  This is one of the most actively traded sectors in the managed futures industry. The main energy futures are crude oil, heating oil, gasoline, and ethanol.

Metal Futures:  With the recent financial crisis, and the high prices of gold, metals have become a very popular sector amongst managed futures traders.  The main metal futures traded are gold, silver, copper, and platinum.

Grain Futures:  The grain futures markets typically have moderate volume, and are far less popular than metals, energies, and stock indices amongst managed futures traders.  The commodities which are considered grain futures are wheat, corn, soybeans, oats, and rice.

Currency Futures:  In the managed futures market, currencies are very popular due to the wide number of markets to choose from.  Some examples of currency futures are the U.S. Dollar Index, British Pound, Canadian Dollar, Swiss Franc, Japanese Yen and Euro FX.

Stock Index Futures:  This sector of the managed futures business is the most popular of all.  In fact, once stock indices became tradable, the futures industry started to explode almost overnight! Some examples of stock index futures are the S&P 500, Nasdaq 100, Dow Industrials, NYSE Composite, Russell 2000, and the Nikkei.

Meat Futures: This is a sector of the managed futures market which very few traders specialize in.  Due to low trading volume, meat futures prices can be quite volatile.  Some examples of meat futures are live cattle, pork bellies, lean hogs, milk, and butter.

Soft Futures:  This is another sector which very few managed futures traders choose to specialize in. Though there are some that have success, the futures markets in this sector can be very volatile.  Some examples of soft futures (“softs”) are coffee, sugar, cocoa, lumber, and orange juice.

As you can see, there are a number of different markets which managed futures traders can pick from.  If you want to “trade breakfast”, you can invest in orange juice and coffee futures.  On the other hand, if you want to trade equities, you can invest in the S&P 500, Dow Index and more! Either way, whether you an investor or trader, the futures markets are bound to have something that interests you.

Though the information discussed in this article may seem simple, it is very important to know of the different markets before investing in managed futures.  If you are an investor, this will allow you to ask the right questions, and better define your risk before moving forward. In contrast, if you are an aspiring trader, understanding the different futures markets will allow you to find your niche, and shorten your path to success.

Remember, whether the topic may seem basic or complex, education is the key to promoting success and safety in your investment decisions!

InsideTrade LLC Staff
(412) 235-2855

Since the process of opening a managed futures account is critical to grasp, we have listed 10 steps below for your ease of understanding.   In addition to listing the entire process step by step, we have also included tips on how to complete each stage like a pro! This will give you the tools you need to efficiently open your account, while allowing you to choose the right trader for your goals. Scroll down and take a look below!

Steps to Open a Managed Futures Account

1. Investor Defines Profit Expectations:  Before choosing a futures trader to invest with, you must first define your profit expectations. If you enter into an investment with no goals, you may walk out with no shirt. Once you find a managed futures trader who has a history of satisfactory yields, all you need to do is weigh the risk against the reward, and make the smart decision.

2. Investor Searches through Futures Traders: If you are looking for a good managed futures trader, you can start by checking the websites of the top clearing houses in the futures industry. Usually, they will promote traders with track records of proven success, which makes most investors feel quite comfortable.  Once you have glanced through those websites, do some Google searches with different managed futures related keywords.  After you find a few companies, take some initiative and call around to brokers and traders to get a feel for feel for the business.

3. Investor Evaluates History of Traders/AUM:  When you speak with a trader, you always want to address two important issues: yields and assets under management.  If you see that they have a good history of audited yields, and they have a large amount of money under management (50M+), then you may have found the right futures trader. In contrast, if they a small amount of assets under management (less than 10M), whether the yields are good or bad, you must address how their strategy will adapt to future growth.  In many cases, investing with a small but rapidly growing futures fund can be the wrong decision in the end.

4. Investor Selects Top Futures Traders:  After you have scoured the internet and other resources for managed futures investments, you need to eliminate those you are unsure of.  Usually, it is best to narrow down your list to 5 traders, and no more.  If you are able to evaluate the information the traders have provided, citing the benefits and risks of each investment, it’s makes it far easier to make the right decision.

5. Investor Chooses their Futures Trader:  After you have narrowed down the list of futures traders to 5 or less, the rest is easy. If you simply list the pros and cons of each trader’s strategy, yields, history, and risk, you should be ready to make the right decision rather quickly.  Once you choose a futures trader to invest with, it’s time to review the contracts and get started.

6. Investor Completes Contract and Documents: Typically, futures traders do not have their own contracts unless they are a “Fund”, or “CPO”.   For almost all investors, the contract is with the company which holds the funds, the clearing house. On this contract, the clearing house will address the risks of futures investments and outline several other related topics.

7. New Futures Account Created for Investor:  Once you complete the contract and provide all required documents, the clearing house will file the paperwork and open an account for you.  Along with the account number, the clearing house will also provide wiring instructions for you to fund your account.  Remember, this segregated account at the clearing house is only in your name, and no one can withdraw funds or authorize trades but you.

8. Investor Funds the New Futures Account:  After the investor has received the account number and wiring instructions, it is time to fund the account. For most futures accounts, the investor must wire the funds with “further credit to themselves” and their account number.  By doing so, the investor is ensured that the funds will only be held in their name, and will never be transferred to a trader or broker.

9.  Authorization Call with Trader and Investor:  Once the funds of the investor have hit the clearing house account, the trader and investor are both notified.  If the account is managed, then the trading can start immediately. If the account is non-discretionary, the trader and investor must have an “authorization call”.  On this call the trader will explain the strategy of the investor, and ask for their permission to implement trades on their behalf.   After this call is completed, the trader can legally start to trade the investor’s account.

10. Futures Trading Starts Next Good Day:  After the wire and authorization call have been completed, trading starts the next “good day”.  In many cases, futures traders will jump right into the market the same day, but if it is best to wait, they may do so for a few days.

Though the process seems long, it really isn’t at all. In fact, you can have a managed futures account opened and be in trade within just a few days.  Despite the expedience of the process, you should always remember, there is NO rush to making your decision.  Since you always want to give a futures trader at least 3-6 months to prove themselves, good preparation is the key to reducing time waste and poor investment decisions.

In summary, investing isn’t fun when you’re anxious and unprepared, but it is when you are making high yields hand over fist. For your benefit, be as thorough as possible, and make sure you understand every detail during the process of opening a futures account. Remember, though they may seem self-explanatory, every step is important to your success.

InsideTrade LLC Staff
(412) 235-2855

In this article we will tell you how to find a managed forex trader while providing tips on how to complete the process of investing. In addition, we will outline steps on how to open a managed forex account and succeed for years to come.  First things first, let’s cover the steps to opening a FX account. Scroll down and take a look!

Steps to Open Managed Forex Account

1. Define your FX Goals and Risk Tolerance: Before investing with a forex trader, always define your MAX risk upfront.  If you understand what you are willing to lose, you can view the track records of different FX traders and pick what meets your risk tolerance.  Also, you MUST define your goals when you are seeking a forex investment. If you are looking for high yields, then be prepared to risk more as well. If you are looking for lower yields, try to find a FX trader with a history of 3+ years.  Either way, remember, unless you align your investment with your personality and goals, you will ALWAYS end up disappointed.

2. Create your Plan to Search for FX Traders: Once you have defined the goals and risk for your FX investment, create a plan to start searching for traders.  Though you can find a number of forex websites on the Internet, you will only find the best traders if you network aggressively in the forex industry.  This won’t happen from you hiding behind a computer screen. Don’t be shy, grab the phone and start searching for the “golden egg”.  Remember, Googling can do wonders, but the best traders do NOT advertise on the top of the search engines. The truth is, those who settle for the first managed forex investment they find are usually the ones who end up disappointed in the end.

3. Find Several FX Traders if Possible: During your searches on the Internet, you may become frustrated, but here are a few tips.  By searching the web for forex discussion forums, managed forex companies, FX brokers, forex clearinghouses, financial directories, and blogs such as this, you will ALWAYS uncover a few good managed FX investments.  The key is creating a solid search plan, as we mentioned in the prior step.  By doing so, you can aggressively search for managed forex investments with tunnel vision, devoting your time ONLY to opportunities which align with your risks and goals.

4. View Contracts for Each FX Trader: Though most contracts for FX traders are similar, it is always good to analyze the contract in detail.  First, take a look and see who the contract is with.  In many cases, you will have a contract with the FX broker, and the trader will ONLY have limited power of attorney to trade the account.  In this case, research the FX broker and make sure they are legit.  In addition, make sure the FX trader has a contract with you guaranteeing a specific MAX draw down % for your account.  This will help protect you from losses, or legally recoup losses if the trader breaks the contract.   On the other hand, if you have a contract with a FX fund or trading company, make sure you feel comfortable with the contract sections covering liability and draw downs.  If you are ok with the verbiage, it is time to complete due diligence on the forex traders.

5. Complete Due Diligence on All FX Traders: To research a managed forex trader, you need to follow a few basic steps. First, you MUST speak with the trader and someone who can attest to their success.  By having a trusted reference and a sense of confidence in the FX trader, you can feel comfortable enough to spend time digging deeper.  Second, you should ask the forex trader for a track record showing the history of the performance.  When you ask them for the track record, also ask them if there is any third party who can verify the yields are accurate.  If the yields are audited or you have a credible client reference, you can once again dig deeper.  Lastly, after you have completed the first two steps of due diligence, perform a criminal background check.  If that comes up clean, “Google” every keyword related to their name, company, and geography and see what you find.  Once you have completed these basic steps, you should have a far better chance of finding a FX investment that meets your goals.

6. Choose the Best FX Trader to Invest with: After you have completed due diligence on the few forex traders that are still appealing, it is time to make the decision.  Though we know the human instinct is to go with the highest yields, remember, no investment is worth losing sleep over.  If you consider yourself to be a smart investor, and NOT a gambler, you will choose trader that matches your risk profile.  In short, if you are someone who wants returns that beat the equity markets, look for a FX trader earning less than 50% who can provide a stable track record of 3+ years.  If you are looking for higher yields, and have capital to risk, search for FX traders making 100%+ per year.  Remember, if you can find a trader with yields exceeding 100%, they will usually also have a few big losses on their track record.  By assessing these losses, and confirming the yields are REAL, you can make the right choice when it comes time.

7.  Complete Contract and Other Documents: Once you have chosen the forex trader you are investing with, it is time to do your part.  In most cases, the process of completing FX account opening documents is rather easy.  Typically, you will have to fill out a contract which includes risk disclosures, duties of both parties, and other legal verbiage.  In addition to the contract, you will also have to provide identification such as a passport or ID.  For some managed forex accounts, you may even have to get a passport notarization and send that in with the rest of the documents.  After you get all of these documents completed, all you need is to do is sign the LPOA (Limited Power of Attorney Agreement) and you are ready to roll.

8. Receive Account Number and Wiring Instructions: Once the FX broker or clearing house has received the account opening documents and proper identification, they will generate an account number.  This account number is associated with the investors name and information, and is also tied to their segregated forex account.  As soon as the number is generated, it is sent to the forex investor with wiring instructions on how to fund their new FX account.  Typically, this is a segregated account in ONLY the name of the investor, and in most cases, the investor sends the wire with “further credit” to themselves.  This ensures the funds are transferred from one account of the investor to another account they control, never putting the funds at risk for fraud.

9. Wire Funds into New FX Trading Account: After the investor has received the wiring instructions, it is time to step it up and send the money.  In a lot of instances, new forex investors get skittish right before they are going to fund the account.  The fact is, if you’ve completed steps 1-8 properly, you will have NO reason to be anything but excited.  Remember, all investments have risk, and your job as an investor is to trust your intelligence and NEVER blind yourself by looking ahead.  If you have made the choice to invest with a trader, and have completed the contract, SEND the MONEY!  If you don’t, you may burn your bridge to wealth due to baseless paranoia.

10. Forex Trading Starts the Next Best Day: At this stage, it is time to sit back and relax before you start to analyze the account and trader.  Usually, domestic wires are immediate, and international wires take 3-5 days.   Once the wire has hit your FX account, you will be notified with a statement from the FX broker or clearing house.  This statement will show your opening balance, and will serve as a receipt for your initial investment.  At the same time you are notified, the trader is notified and the funds are transferred “onto their books”.  As soon as the funds “hit the books” of the forex trader, they will start trading as soon as the market indicates it is good opportunity.

Though it may seem like quite a process to open an account, it really is rather simple and can usually be accomplished in 2-3 days.  Think about it, within 72 hours you can be profiting on money that’s just sitting there, earning little to no interest.  Sounds pretty intriguing to me, but it can’t be that easy, right?

Once you have opened the managed forex account, you can get excited, but NEVER look too far ahead. The reason is, you always need to be COMPLETELY happy with your trader. Take a minute and ask yourself, are the yields satisfactory? Is the communication good? Is everything transparent? How are they about withdrawing money?  By answering these questions several times over the course of the first year, you will know if you have found the “golden egg”, or just ANOTHER oasis.

In summary, it’s ALWAYS important to implement these steps during every stage of the process.  Whether you’re starting to look for a FX trader, choosing amongst several traders, or you’ve already invested with a trader, you MUST always stay sharp. Investing in managed FX is not a decision you make “off the cuff”, successful investors understand the steps AND the purpose behind them. Hopefully this article has taught you HOW to be diligent in forex investments, because if It hasn’t, the only thing that can is LOSING your money….

InsideTrade LLC Staff
(412) 235-2855

With any investment, there are those who are very successful, and those who are headed for disaster from the beginning.  The key difference between the two can be summarized in one word, preparation.  Though it sounds elementary, when many hear of the high returns associated with managed forex, they skip several common sense steps and go in head first with high hopes, but little chance of success.

In this article, we will communicate the key points of managed forex investing, allowing you to avoid the common pitfalls and choose the right trader. After reviewing the top mistakes of managed forex investors, you will be ten steps ahead of any beginner, and will further understand the complex nature of forex investing. Let’s start now! Take a look below, and make sure to read the details after each tip.

Top Mistakes of Managed Forex Investors

1.  Chasing High Yields in Managed Forex: High yields are great, but long term stability is far more important.  This is especially true in a volatile market like forex. If you are new to managed forex, go with a trader using a low to moderate risk strategy. If you feel it is needed, you can always step it up after gaining some experience.

2.  Working with Unlicensed Forex Traders: If a forex trader is licensed, they are accountable for mistakes and will usually do their best to grow your account.  On the other hand, private managed forex traders tend to be risk takers, and have their own interests in mind when trading the money of others.  In short, investing with private managed forex traders is risky, and most success is usually short-lived.

3.  Investing with a New Forex Trader: If a forex trader does not have a track record or licensing history of over 3 years, it is very risky to invest with them. Usually, over the course of 3 years, there will be a huge event in the market which will test the experience of a trader.  Unfortunately, it is very rare that any forex trader will stay successful and licensed for this 3 year period. Those who do last are the best of the best, and are usually the ideal traders to invest with.

4.  Investing too Much Money in Managed Forex: In you are smart, you should never invest more than 30% of your money in a managed forex investment. Though some may choose to take the risk and invest more, it should only be done by those with a very high risk tolerance.  Desperation and anxiousness can lead to poor decisions, and as we’re sure you know, managed forex can be a double edged sword for investors.

5.  Not Withdrawing Money from your Forex Account: If you are earning profit in your managed forex investment, why not withdraw some?  Though we do encourage compounding, we also encourage safety. If you are not working with a licensed managed forex investment, it is always best to withdraw your initial investment once the account doubles in value.  This ensures that you will at least break even if the worst case scenario develops.

6.  Investing in Forex without References: Going into a managed forex investment without a reference is a huge mistake. If a trader is successful at all, he will surely have one client who can vouch for him. If he is not licensed, and will not provide a reference, that is a sure sign to move on.

7.  Investing with Offshore Forex Traders: Despite the fact that there are a number of profitable offshore forex traders, investing in FX offshore has become quite risky.  In recent years, there have been a number of scams and phantom forex traders that have used offshore FX programs to swindle money. If you invest in a forex program on the other side of the world, you will have basically NO legal recourse if anything happens to your account. Since there are multiple jurisdictions and typically no regulatory body, you are usually left with your hands tied.

8. Finding Private Forex Traders on the Internet: In the era of Craigslist, BradyNet, and other social networking sites, we all must use more caution than ever when evaluating alternative investments. Though some may think forex trading is easy, it isn’t.  In all reality, it is far harder to manage millions of dollars of other people’s money than you would think.  With this in mind, don’t trust private managed forex investments that provide no proof, and hypothetical returns. You can find a thousand of these on the internet for a reason.

9. Sending Money Directly to a “Forex Trader”: There should always be a clearing house or FX brokerage which holds the investor’s money.  This entity should be licensed, and in good standing with their regulatory authority (SEC, NFA, FINRA, etc.). If you choose to send the money to the managed forex “trader”, and not to a licensed third-party, the trader could very well be running a scheme. There is truly no reason to allow someone to withdraw or handle your money in a managed forex investment. Doing so could lead to obvious unfortunate consequences, and regret. It is one thing to lose everything on a bad forex trade, but it is a whole other thing to become a victim to fraud.

10. Investing without Understanding Forex Trading: If you don’t understand forex trading and expect to hit the jackpot, think again!  If you are not properly educated in managed forex investing, or trading strategies, you can end up making poor decisions very easily. Do yourself a favor and get a firm grip of the concepts behind forex trading, it will be well worth your time.

Though these “mistakes” may not backfire all of the time, actions such as these can produce a high risk environment. In a high risk environment, you can prosper for a period of time, but the law of averages always leads to some manifestation of that risk.

Always remember, managed forex investing can be great, but only if you know how to qualify and evaluate the trader you are working with.  As with everything, your preparation is the key to achieving your end result. If you stay educated, diligent, and persistent, you will be in the driver seat to managed forex success.

InsideTrade LLC Staff
(412) 235-2855

As we all know, there is not a single thing that exists in the world which can meet the needs of everyone. Though it goes without saying, this is also true in the alternative investment world. Despite what many biased investment managers may say, portfolio customization is what leads to success, not a “one size fits all approach”.  The fact is, people have different investment preferences, goals, and risk tolerances, and they must address these FIRST before making decisions.

To help our readers avoid pitfalls and make decisions that match their goals, we will explain what type of investor is right for managed forex, while also listing characteristics that MUST be present for those considering FX investments.

To get started, let’s take a look below at some of the top qualities one must possess to invest with a managed forex trader.

Top Qualities of a Managed Forex Investor

1.  High Net Worth:  Most investors who open managed forex accounts have a net worth exceeding 1M, but that is not always the case.  Though there are forex investments that start as low as 10K, most of the time they’re unlicensed and higher in risk.  In our opinion, you can test the waters with small amounts of capital, but your best decision would be to find a licensed managed forex trader, and invest at least 100K to start.  The fact is, by starting with less money, you actually have a higher chance of losing it, since smaller accounts are harder to manage.

2.  Strong Risk Tolerance:   If you are considering managed forex, you must understand that there will be some months that are up, and some that are down. For example, if you invested with a good forex trader, yields could look like this over the course of six months: 12%, 5%, -9%, 22%, -1%, 11%.  Despite the fact that you had two negative months, you are still up over 50%, and can benefit from compounding every time you profit.  Though this is a rather normal type of fluctuation, you must also keep in mind that account values can be far more volatile with certain forex traders. Before investing, always assess the trader’s strategy, and decide if the risk is worth the prospective reward.

3.  Understands Forex Trading:  You don’t have to be a trader to invest in managed forex, but you will only benefit from learning.  The difference between investors who have average success in managed forex and those who become rich is one thing, education. If you understand what strategies exist in forex, and know how to implement them, you have a far better chance of finding the right trader during your search.  If you are really serious about managed forex, take a few hours a week and study the topic, it will be well worth your time.

4.  Possesses Diligence and Realism:  If you are pursuing managed forex investments for the high yields, then welcome to the club. Though we all enjoy the unparalleled opportunity for profit, you must remember, in forex safety is always first!!!  If you are a beginner in forex, invest a small amount of capital with a licensed conservative trader, and gain a stomach for it first. Once you get comfortable and gain more experience, you can start to look into higher yielding managed forex investments.  Though it may seem exciting to chase high yields, remember, slow and steady wins the marathon!

5.  Must be Calm and Collected:  If you are the type of investor that likes to check their balance EVERY single morning, than managed forex may not be right for you. Even if you understand the natural daily fluctuations in account value, you will drive yourself crazy by watching it go up and down. Instead, just go relax and enjoy life, you only need to check your account balance once every week, month, or even year with a good trader.

If you are someone with most of these qualities, then managed forex may be a good investment market to explore. In fact, if you find the right trader, forex can be the key to meeting or exceeding your financial goals.

In contrast, if you do not possess these qualities, then managed forex may not be the best choice for you.  If you lack the appropriate characteristics, and choose to invest in forex anyway, you are testing fate.

Though managed forex can assist almost anyone to diversify their portfolio, like all alternative investments, it is best for those who meet the requirements.  Given the recent growth of the FX market, and the frequent failure of many forex traders, the requirements we have listed above couldn’t be more important.  Even though managed forex may be the investment market with the highest yields, remember, it is also the one market that you can “lose your shirt” in overnight.

To briefly summarize, if you have the money and interest, then managed forex could be a great fit for you! If not, then revisit the opportunity when you do.  Let’s face it, nothing could be worse than dealing with a mistake which you know you shouldn’t have made in the first place.

InsideTrade LLC Staff
(412) 235-2855

With the rapid growth of interest in managed forex accounts, we have decided to lay out some key points which will help you steer clear of common potholes. This will allow you to analyze your FX investment through the eyes of a pro, with your focus directed on just 5 critical areas.  Are you wondering what these 5 tips to forex success are? Well, scroll down and take a look!

Tips for Managed Forex Accounts

1. Max Draw Downs of FX Trader:  When you meet a forex trader, ask them for a copy of their recent trading history.  If you see months with 20% or more in losses, this could be a sign of future problems with your account.   Also, if you notice any more than 3-4 months per year with negative yields, their strategy may not be as sound as they claim.   After reviewing their track record, ask them to explain what happened for one of the months with the highest loss.  If it seems like they are vague with their answer, they may trade on instinct or rely on an “automated trading program”, which is NOT good! Once you have covered everything else, ask the managed forex trader to explain their “stop loss” procedure in thorough detail.  This is critical to address, since some traders can involve ego in bad trades and “let it ride” well past the “draw-down limit”!

2.  FX Trader Licensed or Not:  Before investing in managed forex, you must first decide if you want to invest with a licensed trader, or a private trader.  Though private traders may have higher yields at times, we believe all investors should start off with a licensed forex trader.  In today’s market, private managed forex has become very risky and should only be pursued by experienced FX investors.  In contrast, it is very simple to make a good long-term decision with a licensed forex investment.  All you need to do is visit the NFA website, check their licensing history, and follow the other tips in this article!

3.  FX Account Opening Details:  If you choose to open a managed FX account, there is a certain process that most managed forex investments will follow.  First, you receive a contract from a FX broker or clearing house disclosing risks, fees, and other legal details.   During this stage it is critical to define the “accountability” of the trader, so you know what your risks truly are. Second, your new managed FX account number is generated, along with the wiring instructions to fund the account.  At this stage, it is critical to make sure you are sending money into a segregated account in your name, not to the forex trader or company.  Third, once you have been in trade for a month or so, evaluate the transparency, communication, and account fluctuation over that time.  If they are licensed forex traders you can relax, but if they are private traders, you should pay close attention to every detail!

4.  Audited FX Track Record:  If you encounter a managed forex investment, see if the trader has a track record covering at least the last two years.  If they can’t provide that much history, it’s a sign that future markets may test their strategy.  Usually, over the course of two years, something unexpected happens to a trader, and tests the validity of their strategy. This is when the real traders swim, and the less experienced sink, along with the accounts they were managing.  If you are speaking with a private FX trader, remember, all yields should be considered hypothetical unless you know someone you trust who confirms their success and profits.

5.  FX Trader’s Assets Under Management:  When you meet a forex trader, you should evaluate their trading strategy in relation to the amount of capital they have under management.   Some FX traders can make amazing yields with less than 10M under management, but as their fund grows, their strategy starts to show its holes.  As many FX traders learn the hard way, trading with more funds increases your chances of “slippage”, which in return affects the prices you enter and exit at.  For example, someone with 10M under management may get into a rising Crude Oil market at the right price (ex. 82.10), but a trader with 50M under management will get a price that is usually less favorable (ex. 82.60).  In short, when you are implementing 500 positions at once, it is a lot easier to earn high yields than with 5,000 positions.   With this being said, look for managed FX traders that either have a large amount of money under management (50M+), or those with small amounts of capital and no plans for growth.  Either way, it is good to ask the FX trader to explain their plans for new growth, and how their strategy will adapt to it.

By understanding and implementing the tips listed above, you can protect yourself from poor decisions and move more swiftly towards your investment goals. Though you are bound to come across a managed FX investment that seems too good to pass on, remember, these tips are used by the top forex managers in the world for a reason.  Why roll the dice and test fate? If you are a smart investor, you will start off conservative and increase your risk as you feel more comfortable.  To summarize our point, let’s ask you a simple question?

Wouldn’t you rather have 75% per year for 20+ years vs. 300% for 1 year?

If you are not brain dead, the answer is a simple YES.  In fact, 1M would compound into $ 1.45B if an account made 75% per year over just 10 years! Yes, those figures are correct!

Stick to the rules and remember, you don’t have to swing at the first “pitch” every time.  As any Billionaire will tell you, long term wealth requires patience, not erratic decisions based upon greed…

InsideTrade LLC Staff
(412) 235-2855

In this article, we will explain the potential profit of managed futures by grouping traders based upon the “risk” of their strategy.  This will allow you to understand what profits you can expect for various risk tolerances, and will define which is right you. Remember, though high returns are not always associated with high risk, most of the time they go hand in hand.  Scroll down, and take a look below.

Managed Futures Trading Strategies

Low Risk: Low risk managed futures accounts will aim primarily for one goal, positive returns every month. The main focus is preservation of capital, and long term growth through account compounding. Many times, these traders may have expertise in only one futures market, and will make their profits the same way year after year.  In addition, they may have “stop losses” as low as 2-5% of the account value to prevent large draw downs.  This is the most common type of trader you will find in the managed futures industry, and will typically produce returns between 20-45% per year.

Moderate Risk: Managed futures traders with moderate risk strategies capitalize on big swings to make profits, and may trade futures positions without cover (“naked”).  Though these traders may aim for high profits, they have a predefined stop loss %, and a profit goal for every month. Also, many traders may implement trades in a few major commodities, rather than specializing in just one futures market.  With a moderate risk strategy, the returns for managed futures investments may range between 50-90% per year.

High Risk: Those who would be considered “high risk” managed futures traders only have one goal in mind, profit.  Some of these traders can use such high leverage that they can turn 50k into 1M in 6 months, but during that time they are always “naked” and exposed to risk. Despite their amazing success, there is usually a huge reality check at some point that refines their strategy.  Generally speaking, you are more likely to find “high risk traders” who manage futures privately. In most cases, traders with a license want to mitigate their risk and achieve steady profits, not aim for record-setting returns.  With “high risk” managed futures investments, the returns usually range between 100-300% per year, but can be far greater!

As we have explained before, each trader is unique.  Despite the common assumption, many traders can have low risk strategies, and still be able to achieve very high profits.  Though strategies like this are extremely complex, options traders from all over the world profit in low risk environments every day.

If someone is to ask you, “what returns can be produced in a managed futures account”, you should now know, it depends on your investment background. The fact is, you must always match your risk tolerance and investment goals with that of the managed futures trader you are investing with.  Each trader is right for a certain type of investor, and is not for everyone. Though we wish it was this simple, you should never base your decisions solely upon the returns offered by a futures trader.  This can lead you to invest with a trader with conflicting goals, which will most likely present a problem for you in the future.

To summarize, managed futures investments are great, but only for the savvy investor with large investment goals. If you are an investor with money to risk and are looking for high returns, then you may want to give managed futures a shot! If you have a limited amount of capital and are thinking about striking it big, then you are following a path to disappointment.

InsideTrade LLC Staff
(412) 235-2855

Since forex has become such a popular market, we felt that we that it was a good time add the first of many FX videos to our blog.

To assist you to understand the key points of this forex video, we have provided a list of important concepts to take away from it.  Once you have read through our list, and watched the video, you should have a basic understanding of the definition of forex trading, and its application to you.

Take a moment, and read through the list of topics that the video covers before watching it.  After you are done skimming through the key points, scroll down and go to the kitchen to get some popcorn!  This video is a little long, but it has very good information until the last minute where they try to sell you their “automatic FX trading software”.

Forex Trading Video Key Points

1. The Definition and Concept of Forex Trading
2. How You can Profit from “Currency/FX Trading”
3. Forex Trading is Not Very Hard, and Many Get High Yields
4. Understanding the Role FCM’s (Futures Commission Merchants) and FX Brokers
5. Technology and Internet FX Brokers Now Allow Anyone to Trade from Home
6. The Benefits and Risks of Forex Trading
7. Forex Trading is Fun, Exciting and Challenging
8. Trading Forex is Only for Certain Types of People
9. Understanding Yields, Leverage, and Charts When Trading Forex
10. How to Start Trading your Own Demo Forex Account

Since these points are listed in the order they are discussed in the video, it may help to bring up another browser window so you can follow the outline while watching.

Thank you for your support, and we hope you enjoy this great forex video!

InsideTrade LLC Staff
(412) 235-2855

In recent years, managed forex has become an exciting industry to watch. Though the FX market has grown, the barriers to success have also. A good example is leverage, which went from 100:1 to 10:1 for USA traders.  Why the dramatic decrease? Well, more investors are flocking into the forex markets than ever, and with equities struggling, efforts are being made to curb the growth of the FX market.  Though this doesn’t seem fair to many of the people in the forex industry, “it is what it is”.  The fact is, managed forex investments will continue to grow for decades to come, no matter what.

Whether you want to open a FX trading account or invest in managed forex, our website is the place for you. For unbiased education on FX markets, visit our “Forex Investments Category”.  There are tips, videos, charts, articles, and far more FX topics for you to enjoy! What are you waiting for? Start building your forex knowledge right now by clicking on forex investment education!

Forex is an exciting industry, but now is the time to get in or it will only keep getting harder.  Whether you are interested in managed FX or trading your own forex account, you must act now before the rest of the investment market does.  The reality is, with equities hurting, investors are now flocking towards managed FX trading. Though this seems great, due to government initiative, it can also ruin a good thing.  For example, with recent pressure on equities and rising interest in forex, leverage could be reduced to 10:1 in the domestic FX markets. This was a FX market which had 500:1 leverage, and now, its popularity is curbing its potential.

If you interested in more information about FX trading or managed forex, take a look at our “Forex Investment Category”.  It covers great tips for managed forex investors, aspiring FX traders, brokers and more.  This will give you the tools you need to succeed in the forex markets, whether you’re a broker, trader or an investor. As you will see, this blog is unlike anything on the Internet, which is why it’s become the center of education for the FX market. 

Forex is an exciting industry that has grown by leaps and bounds in recent years!  With Trillions traded per day, you may be saying, “Why such immense growth”? Well, whether you want to open a FX trading account or invest in managed forex, it’s now easier than ever.   With the evolution of Internet, the forex market has become accepted all across the world, leaving dollar signs in the eyes of many investors.  If you were a managed forex investor, wouldn’t it be nice to earn profits which had no correlation to equities? Let’s face it, forex trading is here to stay, and it will only get bigger from here.

If you are interested in managed FX trading, take a look at our great investment blog. It covers tips, risks, rewards, and far more for your forex obsession.  Though we do focus mostly on managed forex, we also have educational articles on futures, private placement and a lot more.  Take a minute and browse through our blog homepage, it will be well worth your time. 

A “managed FX account” is an investment with a forex trader which yields a profit based upon the success of their trading.  As you would expect, FX traders make their money by working in the foreign exchange (“forex”) market, acting usually as speculators on FX prices. Typically, a managed FX trader aims for yields which fit the expectations of their client base, and by doing so, they earn management fees.

The reality is, managed forex trading comes in all shapes and sizes, and no FX traders are identical. You can have one managed forex trader with an expertise in EUR/USD short sales, and another FX trader who ONLY focuses on long positions in the GBP/USD markets. The point to remember is, each FX trader has a unique strategy, and their “secret sauce” is what differentiates them from others in the managed forex market.

In recent years, managed forex funds have grown faster than anyone could have ever expected. With both the investor and trader benefiting from higher yields, it isn’t hard to see why managed forex investments have become the new hot trend.  If you want to find the best managed forex account for your goals, take a look at the articles in our Forex Investments Section.  As you will see, we have provided tips for finding good managed FX traders, and a whole lot more. Remember, with enough education you could get rich from forex, but without proper knowledge, you can “lose your shirt” overnight.

Over the course of the financial crisis, managed forex funds have flourished, proving they are a stable asset class in any investment environment.  While other investment markets took huge losses, the reality is, many managed FX traders profited heavily from that same market volatility. In fact, managed futures funds were up collectively in 2008, while the equity markets lost 40+% world-wide. With both the investors and traders benefiting from higher yields, it isn’t hard to see why managed forex investments are the hottest new trend around.

If you are looking to find the best managed forex account for your money, take a look at the articles in our Forex Investment Category.  We cover important tips for managed forex investors, FX trading examples, and a whole lot more. As you’ll see, a proper FX education will help you steer clear of potholes, while you follow your exciting path to forex success!

Recently, managed forex trading has grown faster than anyone would have ever expected.  At one point, managed forex was just a small niche in the alternative investment markets. Now, if you watch CNBC, forex brokers are even on commercials spreading the word.  Though other alternative investment markets have also done well, managed forex funds have exploded unlike any other. With both the investor and trader benefiting from much higher yields, it isn’t hard to see why managed forex is the now the hottest new trend.

Though managed FX is a great investment market, it can be very tough to find the right forex trader for your account. Despite what many will FX brokers may claim, there are only a few hundred managed forex traders in the world who are worth investing with. If you want to find the best managed forex account you can, take a look at the educational articles in our Forex Investment Section.  As you’ll see, there are tips for managed FX investments, and tons of other forex articles for you to enjoy!

In recent years, managed forex funds have grown faster than anyone would have ever expected.  In fact, managed forex investments gained significant ground on the equity markets during recent financial turmoil.  Since investment regulators have noticed this trend, they’ve created new laws which “drive money away” from the managed forex markets. Despite these new law changes, it hasn’t slowed down the interest of investors, who still open hundreds of managed FX accounts every single day.

Even though managed forex may seem appealing, education is a must before investing with any FX trader.  Trust me, there are tons of forex horror stories we have heard, and you do NOT want to become one of them. If you want to find the best managed forex account for your goals, take a look at the articles in our Forex Investments Category.  As you will see, there are tips for finding good managed FX traders, as well as other topics which may peak your interest.

Over the last few years, managed forex funds have attracted more new investors than ever before.  To add to the growth of the forex market, the financial crisis has left many investors searching for other options with higher profitability. Since most investors know equity markets are unsafe, managed forex has helped fill the needs of many. With both forex investors and traders benefiting from far higher yields, it isn’t hard to see why managed FX investments are becoming the new trend.

If you want to find the right managed FX account, take a look at the articles in the Forex Investment Category.  As you will see, there are tips for finding good managed FX traders, and just about anything else you could imagine.  Though choosing the right managed forex trader is important, just remember, there is no rush.  If you do things at your pace and educate yourself in managed FX, you will be far more successful in the end.