How to make free money from Forex At no Cost (PAMM-Updates-PART-3)

We have discussed how to do this here and what PAMM investments are all about here . In this post we will give updates on new ones and updates on the best performing ones I have mentioned before in previous posts.

Recommended PAMM: Premium Trading Asia

This PAMM has all the characteristics of a PAMM I recommend to people. it has steady returns, it can yield up to 25% plus in a month provided you, it is carries moderate risk etc. So far the PAMM has made 265% in the last 12 months but because it is not compounding it will take a longer time to double the current equity/balance. But if one should make investments soon you are guaranteed to make at least 50% in 6 to 7 months. Below is the performance of the PAMM investment so far. Maximum compensation is 50% for 10$ and reduces as deposit increases.

premium night trading PAMM investment performance so far

Premium night trading PAMM  investment performance break down and manager compensation proposal

So far I have investments in the following

My PAMM accounts with Alpari Broker

1. TSAPAF
2. COBALT
3. PREMIUM NIGHT ASIA

How to Open an Account with Alpari Broker

This aims to guide you on how to open an account with Alpari Broker.

Step 1: Follow the link here to open an account with Alpari and click the Orange "OPEN ACCOUNT BUTTON"

ScreenShot of Alpari Accounts Opening page

Step 2: Select the account type you will need standard or ECN accounts if you want to trade yourself  in future. If you want to operate a small cents accounts you can choose a nano account. I recommend selecting accounts with MT4 suffix because it is more common than MT5 you must however note that you will be able to invest in PAMM accounts irrespective of the account type you chose. Hence, select standard.mt4 and move on if you are opening the account for their PAMM services.

Screenshot of account selection page

Step 3:  Agree to all the conditions and upload the documents required for account verification if you are not going to use a local bank transfer to credit your account.

How to invest in Alpari PAMM accounts

The following posts covers the procedure for investing in PAMM accounts with Alpari Broker.
See details on what PAMM accounts is that attracts over 30,000 investors yearly to Alpari alone(As said before I am also affiliated to them).

Step 1:  Open an account with Alpari Here: you can see detailed steps on how to go about that here.

Step 2:  Transfer funds to the account so that it stays in the transitory account. 

Tip: A transitory account is an account that temporarily holds your deposits so that you can choose which Trading account to put it in or which PAMM account to put it in.

Screenshot of Alpari Transitory Accounts

Step 3:  Follow the links from here (all pamm accounts) or here or your bookmarked or stored links to the PAMM account you want to invest in.

Step 4: Click the invest button on the PAMM account page

ScreenShot of button to go to invest funds window with Alpari PAMM accounts

Step 5: In the resulting Window, Specify the amount of money you want to invest which ranges from 10$ to any amount you may have in mind. Note: Most managers charge less percentage fee for larger account.

Screen shot of  deposit window that allow you to invest in the PAMM account

Step 6: Finally click the invest funds at the bottom of the deposit window and watch the account grow monthly.

Screenshot of location of investment Button.

How to get a professional trader to trade Forex for you for Free (PAMM accounts Updates)

Having discussed what PAMM accounts are in this post and why they make great investments, many people fail to realize that the you actually get to get a professional manager to trade for you for free. Your only investment will be your initial investment.  The compensation or charges people get charged for on the return is based on the performance of the manager. Hence, your return is technically net the charges which can be said to have been obtained for free.

For example,  my live account with Tspaf PAMM returned 30% after 2 months being half of the return obtained by the professional trader (60%). The way I see it is that the 30% is the actual return of my business net the cost of investing which is the profit. That is basic accounting  Revenue-Cost=Profit. See the performance below;

My Live account  results with Tsapaf PAMM with alpari. (After he has taken his compensation)

(Update on Tsapaf  PAMM 26 Feb 2018). although The returns of the PAMM is still great. I fear for the loss recovery method that lead to a 66% floating loss. That is quite large and could eventually lead to the closure of the account. Do well to note this when you are deciding how much to invest here. I would not suggest it on the long run. Scalptik PAMM account investment may be safer on the long run for me.

 Here is the performance of the original PAMM account

Tsapaf PAMM account performance with alpari

GREAT PAMM accounts Investments

I will like to suggest some sound ones that are safe and are performing well. For this post we will discuss Scalptik PAMM account investment . This investment is great for those who fear those huge drawdown but it comes at the expense of having months with little or no profits. The Risk: Reward is great with  over 300% return in one year alone. Do well to check it out. Note. I am affiliated to Alpari.

Scalptik PAMM account investment performance

Conclusion

You don't have to really on your self anymore to trade Forex.. If you are not comfortable with the performances listed you can select one yourself from hundreds of amazing ones here on their website. Just look for PAMM ratings or invest buttons.  Note I am affiliated to Alpari and all services relates to brokers on this site.

How to diversify your investments across Geo-Political zones.

We have discussed how Geo-political Factors affect ones investments. Now we will discuss how to diversify your investments across Geo-political zones.


The first step in diversifying your investment is finding out and classifying them into these Geo-political zones. You can choose to diversify your investments locally in your country (As banks do) or internationally as international companies do.

To classify investment based on geopolitical zones

Decide and assign a risk factor to each Geo-Political zone: As risk is directly proportional to  geo political zones are not equal. Some are riskier than others. Hence assign a risk factor to each (You can use the higher the factor the riskier the investment). You must also note that risk is directly proportional to rewards so these should not discourage you from making an investment is such zones.

Analyse the exposure and ensure they are not connected or related to each other else you will be double counting:  Connect  Geo-political zones heavily related to themselves as the same risk for instance. Two countries threatening to go to war with each other will face the same risk as related to war.

Divide your investment into slices according to their Geo-Political Zone: Divide your investment into slices and apportion the smaller amount to the riskier ones. So lets say you have $50,000 you will divide it like this. 60% will go into safe investments with risk factor of 1-3 and 40% will go into riskier investments of 5 and above. Now divide the 40%  ($20,000). into the various zones according to the various risks the possess.


Assign a particular percentage of your portfolio to each zone:  Now classify the percentage of your portfolio to each  sub-zone, specifying the amount to invest in each

Review and manage your portfolio and ensure you are adequately covered by periodically re-accessing the risk:  At the time of investing a particular Geo-Political zone may not be risky but as time goes on the risk factor will just shoot up. Take the Brit Exit for instance. A company having its investments there was not facing the risk posed by Brit-Exit such as Higher Taxes, Labour etc. However as soon as the decision was made in 2016, all investments in that region as related to foreign European companies took a hit. Because of this, one must always review their investment periodically to ascertain whether to liquidate them ( sell them off) or add to them.



An Example will be given in the next post

RECOMMENDED: Stock to buy for medium to long term

INVESTMENT GUIDE STOCK ANALYSIS

This is a follow up on the the stocks to watch RSS feed on the app Investment Guide  you can also see the Particular post here posted on January 17, 2018. We will be looking at Lam Research Corp  stock.


The following is a description of the Company.

Lam Research Corporation is a supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes and services semiconductor processing systems that are used in the fabrication of integrated circuits (ICs). It operates through manufacturing and servicing of wafer processing semiconductor manufacturing equipment segment. 

The company has raking in significant revenue which obviously  

Chart of Lam Research Corporation: image source: Investing.com

The recent surge strongly suggest an upward momentum that will strongly favour BUY TRADES in the medium to long term. If you are familiar with RSI you may want to be careful around buying at  a stock at a value which is over 70 and that is the case now. However since we are considering the medium to long term return of the stock this may not be relevant. The dividend of this company also currently stands at $0.5 having been increased from $0.45 last year

The downside to buying the stock on the long term is the agreement to company recently announced a   $2 billion share repurchase authorization which if triggered will require owners of shares to sell their Shares back to the company. 

Other than the above points I feel the stock is a a good stock to buy given the potential to soar by 50-100 points this year.

Other data of Lam Research Corporation  (LRCX)  from investing.com

Why you must diversify your Investment portfolio across Geographical Region

All investments carries certain amount of risk whether it be (Forex, Stocks, ETFs, Mutual Funds, Crypto-currencies, commodities etc )as it relates to loosing ones capital, however few people are aware that investments also carry Geo-Political risks.  Other than balancing your portfolio based on volatility. 

Geo-Political Factors affecting your investments

The following are some of the ways the Geo-Political factor discussed can affect your investments

• Change in Government Policies: Economic downturns are often followed by change in government policies which tend to seriously hamper or promote your investments. A good example of this is the Tax Cuts introduced by Donald Trump in 2016 that would lead to increase the overall net profits and Dividends of all stock investments.
• Political uncertainty and instability: Political Upheavals like the recent crisis in Turkey seriously shook the stability of the region and also the investments that made the stocks to fall by over 2.5% on that day alone.
• Natural disasters are also known to affect investments: the routine earth quakes in the middle east, the hurricanes in the west can and do affect ones investments adversely. They could shutdown or damage a factory hence lead to significant losses.

As a result of the above factors, diversifying your  portfolio across Geo-Political Zones  offers the following benefits.

Benefits of Diversifying your Portfolio based on Geo Political Location

1. It will protect your investments from changes in the political instability: 
2. It will reduce your exposure to Geo-political zones such that the impact on your investments will be limited
3. It will give your investment a more global outlook which is generally safer than investing in just one country.
4. It allow you to stay abreast of all news across many geopolitical zones which in turn will allow you to be open to new opportunities as they arises

In our next post will address how to go about this.