Forex: Investing With PAMMs

Defining PAMM

Lets first define what PAMM is: it stands for Percentage Allocation Management Module. In plain English, a money manager manages a pool of money. The pool is composed of (usually) multiple investors each of which has a share or percentage of the pool. When the money manager opens a position, the position is spread out across all of the investors accounts as an equivalent percentage of their share in the pool.

For example, if I have $10,000 and the money pool is composed of $100,000, that means that my percentage is $10,000 / $100,000 = 0.1 x 100 ( to get percentage) = 10%. So my share of the pool is 10%. Now, if the money manager opens a 1 standard lot position in the market, my account will have to open 10% of 1 standard lot, or 0.1 standard lot position.

Why have a PAMM account?

There are people who have money to invest but they just do not have the time, expertise or the patience to trade the markets by themselves so they prefer to give their money to someone else who has those skills and does this for living. Your money will automatically grow (assuming a good trader is controlling it) more than if it were in a bank and you still have full control over your account. You decide when to invest and when to stop. The trader never has access to your money and most brokers also offer protective stops which get rid of the risk of account destruction.

Advantages of investing in a PAMM

1. You do not need any Forex skill to make money all you need to do is to connect your account to the PAMM and the rest is done automatically.

2. You can keep your day job or your business and make money from two income sources. The money will grow while invested in the PAMM.

3. You have full control over what happens to your account and you can stop investing and withdraw the money nearly instantly. If the traders loses X amount of pips or Y% of the capital, you simply stop trading.

4. No one can touch your money unlike some money management services that require you to deposit money to their system. With the PAMM you are the only one that touch the money.

5. Professional traders charge usually 20% of the performance and even with such commission they manage to make more money than you in the same period of time.

6. They trade all day long because they are professionals while you can trade only after work most of the times.

7. With a nice amount of capital you can expect to make enough to pay you a second wage.

Disadvantages of investing in a PAMM

PAMMS are great but there are also some disadvantages you need tom consider when investing your money with them. Not everything are roses, there are some spikes on the road as well:

1. You do not know who is on the other side of the line, so you trust someone you do not know your hard earned cash. Make sure you read the profile very carefully about what his trading objectives are and how he manages the money. Do not go for the PAMMs which are a month old and already making 120% a month. These PAMMS rarely make it to the second month.

2. If the PAMM does not have a six month past performance or more you are trusting your money to a very high risky system that can lose all your capital if you are not careful to withdraw the money on time. PAMM trading does have risks, especially for investors seeking to make more than 5-10% a month.

3. There is no way to know when the traders changes his trading methods from good to bad and so you do never know when you can start losing money.

PAMMs are perfect for the traders who are not so skilled like the professionals or they just do not have the time or the patience to trade. PAMMs are very secure and transparent these days. Unlike what you can read in some forum reviews, PAMMs cannot steal money from the accounts, the PAMM traders has authorization to trade the money only and can never touch or withdraw it.

Starting Your Own Dog Walking Business

Dog walking is one of the most viable businesses you could venture into. Similar to majority of the service-oriented businesses, the startup capital or costs are minimal while the financial rewards can be high. With this kind of dog business, you can both combine work and fun especially if you’re a natural dog lover. So, what are the steps or requirements in starting your own dog walking business? The following short list should be a helpful guide.

• Plan, search, and identify your business’ location. Dog walking can be a home-based business. But there are always circumstances when you needed to offer your service outside your community or locality. You have to determine whether there is a large population of household dogs that you can service. The majority of owners availing the dog walking service are those who are relatively busy working, studying, or attending to something important. Thus, your startup location should not only concern the population of dogs but also the actual need for the service.

• Concerns on registration or business documents. The need for business registration and documentation will generally depend on the scale of the dog walking business you are planning to put up. If it’s a formal type or somewhat a large scale business with an office, equipments, etc, you will have to go through the legal process. But if you are planning to have a dog business that is micro in nature and which you consider only as a sideline, then, you don’t need to stress too much on the documentation requirements. You can always start your high profit dog walking service business almost instantly.

• Determine your service price. Pricing is one of the startup concerns for this dog-related business. And when it comes to pricing your walking services, the most ideal way is to charge an hourly rate. You can nominate the price you want. But the industry average ranges from a low rate of $10 to as high as $25. You can alternately check the prevailing rate in your area for you to set a more competitive startup price. Instead of hourly charging, you can also charge the dog owner on a per-visit basis.

• Learn how to walk doga. If you are new to this venture, learning the essentials of dog walking is a must. The dog owners are entrusting their beloved pets to you. Hence, it is just right for you to know what you are doing. Having the right knowledge will also ensure that you will provide the best or excellent service.

• Invest in your equipment. This business does not only involve walking. It’s essentially a form of baby-sitting a dog, hence; will require you to have a complete set of dog essentials from leashes, dog foods, certain grooming or training items, cage, etc. Since it is a business, you should consider these equipment and supplies as inputs or investments.

• Promote or advertise your service. Potential customers won’t know that you are into this kind of dog business if you won’t tell or inform them. After organizing all the things that you’ll need in the business, the final thing to do to turn it into a high profit dog walking service is to accumulate as many customers as you can though marketing and promotion. You could sell your service manually by visiting homes, pet shops, and dog centers, or, you could create ads and other types of interesting posters.