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What do you think about PAMM?

Discussion in 'General Forex Talk' started by FxMaster, Apr 16, 2015.

  1. FxMaster

    FxMaster Lt. Colonel

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    Well, As per my views I don't let anyone to trade behalf on me but there is positive and negative thoughts on Pamm accounts.

    What`s your views on it?
     
  2. Pharaoh

    Pharaoh Colonel

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    If (and ONLY if) the broker is reliable, PAMM accounts can give the trader some advantages.

    The trader decides how much money to put into the PAMM. This lets the PAMM trader decided how much to risk on the PAMM, whether or not to diversify into several PAMMs, and usually (some brokers may have restrictions - check BEFORE using a PAMM) can pull the money out instantly. This is unlike a MAM, where the trader must surrender a password to an account to the account manager, and may have trouble quickly regaining control of the account if things go wrong.

    I've never used a PAMM. I'm not sure whether traders sometimes/always/never have access to view the trades as they happen within the PAMM account.

    Any PAMM participants care to fill in some more details?
     
    ForexVerified likes this.
  3. iMusingKiMi

    iMusingKiMi Sergeant

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    I might prefer using PAMM rather than MAM. This is because MAM allocation module base on the trading sizes instead of your invested amount percentage. For instance if the trader account consist USD 1,000, that means your account must have the same balance as trader to fit his money management rules. The difference on PAMM still depends on what the investor wanted to invest no matter how much balance of the trader or how many investor have. The allocation method depends on percentage instead of the lot sizes.
     
  4. DavidC1

    DavidC1 Private, 1st Class

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    Don't think I would do it myself, but I guess for some people who see the draw, it's no worse that investing in anything else I guess. At that point they have to make sure they invest in the right person, not know the market so well.
     
  5. StefanoC

    StefanoC Recruit

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    I had a very bad experience with HotForex PAMM. I chose two among the top ranking and inesorably lost all in both within two months.
     
  6. henyo

    henyo Master Sergeant

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    like in general pamm accounts are for those who dont have the time, setting aside the account, people have the wrong mind set about pamms, there are risk that apply, its the trader and how he handles the tradings and risks, on the other hand there are good accounts out there with good results, funny how some people start looking for something to blame after getting a pamm account blown by some unknown trader but never the less losing money aint funny, and yes it does hurt, so just a reminder for traders, only invest when you fully understand how it works, I trade my own money, and pamm accounts are not bank deposits that would grow on its own. its basically a fund managed by some other trader which has a high risk depending on the strategy used.
     
  7. downtrend

    downtrend Sergeant

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    Looks like those traders that are among the best were only gamblers that some how got to the top positions. Losing all of the investment in a PAMM account won't happen if its in the hands of a real trader.
     
  8. EuroTrader

    EuroTrader Master Sergeant

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    In the PAMM system if the Fund manager is well experienced then you can hope to get a good income from your trades easily :)
     
  9. ForexVerified

    ForexVerified Private, 1st Class

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    That about sums it all.
     
  10. iMusingKiMi

    iMusingKiMi Sergeant

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    PAMM doesn't mean top ranking the best. That's amateur picking of trader to invest on. Even though you don't trade yourself, but still you have to do some figure homework for instance max drawdown, risk reward ratio, sharpe ratio, etc. All that matters if you want success even only by investing trader.
     
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