16:30Annual market activity
Trading, of course, can be attributed to seasonal business. Earn, of course, it is possible both on trends, and under the flute, in this it is not necessary to doubt, however, there are features of the trade itself. If speculators who appreciate the sharp market moves, long-lasting trends, and so on, will stumble for a long time in the lateral market, then they will hardly like it. A similar situation is for fans of the fleet, which were in the very peak of trend movements. Understanding the difference in market conditions, we can predict what should be done in one or another situation, to what exactly can begin to prepare, coming to the next season.
Traders who create "financial weather" on Forex, like to take holidays in the summer, postponing trading for the fall of the day. The market may lose the lion's share of liquidity in the summer months, which can not but affect the whole situation as a whole. It is possible that the speculator will observe a decrease in volatility, but at the same time, and the appearance of sharp short-term jumps in prices. Such movements will be associated with an increase in the significance of those or other participants who previously could not significantly affect the market in their volumes. In the period when the number of strong players decreases, there is a likelihood of a significant effect on the quotations even of average sales volumes.
Perhaps the summer time will be favorable for admirers of systems built on the principle of averaging positions, as well as using martingale. The fluctuations of the market from side to side, just will be the best factor for successful trading with the use of the network model. It's not so important where exactly the price goes, if it still fluctuates in a narrow range of values. In 2012, such pairs as Eur / Usd, Gbp / Usd, just saw such a situation. Almost all summer the price rushed from local minima and highs, going to the opposite border. But as soon as the September came, the market appeared a powerful trend, which took with them not enough money fans to buy against the price movement.
The foreign exchange market at any time of the year can bring surprises to traders, but certain features in the behavior of prices are still there. Not for nothing, many skilled speculators are trying to avoid trading in August, believing that this month is most dangerous for market trading. It may well be better this month to arrange a good rest in order to gain strength before the fall. To make a break in the trade necessarily, and if this also a month ahead is not the easiest to work, then there is a reason to postpone to then.
PAMM system ratings
Probably there is no single principle for placing all the work of managers, which could be called the ideal option. Each method of account classification has its own advantages and disadvantages. Below, we will look at the most commonly used principles of ranking. One of the most obvious ways to place a PAMM is the percentage yield. The greater the growth of the capital in the manager, the higher his work will be in the overall ranking. It would seem that this is a great option, which could have stopped, but it also has its drawbacks.
The fact is that when allocating interest rates on deposits, the amount of subsistence that was in the trade period is not taken into account. It is possible that the two managers will have roughly the same profitability for approximately the same period of time, but the values of maximum deposition at the same time will vary in times. In addition, relatively new PAMM accounts will be difficult to get into the first places of the rating, since their profitability can not reach the performance of competitors who work several times longer. The trader could trade for a year, steadily earning money for himself and investors, but never reach the top ten managers.
The rating may also be formed on the principle of capital value, which is on the manager's deposit. The more money the speculator himself or his investors put on the account, the higher will be the PAMM - the account in the list. It is also a very controversial way of identifying leaders. It turns out that if the trader can afford to replenish the account for a round amount, then his proposal will rise much higher than his counterparts. At the same time, the speculator can work on the market less effectively than other traders. Again, even if you are trading Forex yourself, then that does not mean that you will be worthy to rise in the PAMM account rankings.
As a rule, it is the above-mentioned two methods that are most often used when building a rating. The advantage on the side of those speculators who have been working on Forex for a long time and at the same time successfully. It will be difficult for newcomers to test their way to the TOP 5 of any rating of any company. Perhaps this is also a kind of filter that protects investors from new offers that have not yet been tested by time. Stability can be detected only with long-term trade in the market, which can not be ignored as well.
This is how the volume of all the clients is gradually caught up, which will allow us to talk about the company's overall turnover. As such, the trader does not differ from the company, or his monthly turnover equals 10 lots or 100. Here the partner of the brokerage organization who has found the speculator can win. The company pays to its partner part of the money spent by the trader as a spread. The partner, like a broker, will receive more profit, the more significant trade turnover demonstrated by a currency speculator.
A similar situation is observed both in classical accounts and in various ECN variants, but instead of the spread, a commission will be deducted, which also depends on the number of transactions executed. In fact, there is no particular difference what exactly is being taken by a broker, a spread or a commission. The principle of their formation is similar, and therefore, it is only a small difference in the forms of payment broker services. As a rule, a client who trades in large volumes can count on special conditions, such as a personal manager, round-the-clock support, and so on. DCs, so popular on Forex, are often in no hurry to allocate VIP-clients from their clients, trying to offer all traders a single-level service.
The trade turnover of the company for the chosen period of time demonstrates its success, the demand of the speculators. Naturally, this is an indirect indicator of net profit, as well as the popularity of the organization. Every year, many brokers publish their financial indicators, which can at least in general to judge the state of affairs of this organization. Of course, information can be adjusted to any of the parties that will be more profitable for the company, but nevertheless, a general idea of the success of its activities can be obtained.
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