You can't invest. Investments in companies with state participation: advantages and disadvantages
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Good afternoon, dear readers and blog visitors. It's no secret that investing in PAMM accounts has been gaining immense popularity recently.
More and more people are trying to invest their money in this area. Unfortunately, not everyone thinks about the fact that there are well-founded risks of PAMM investing.
Accordingly, in this article I want to talk with you in more detail about this topic and look at how potential risks can be significantly reduced.
Of course, investing in PAMM accounts can become a really profitable activity, but no matter how hard you try, you will not be able to avoid potential risks.
Of course, you can minimize them in every possible way, but it is not possible to completely eliminate their presence. In general, this issue is multifaceted, because there are a huge number of nuances that must be taken into account.
Choosing a platform for investing funds
The potential risks of PAMM investing will largely depend on how wisely you choose a platform for investing funds. What is meant by platforms in this case?
These are various brokers that have a pamm service, and where, accordingly, you can invest your available funds.
It is very important to ensure that this site has a good reputation and reviews; in addition, pay attention to how long it has been operating. The longer the PAMM service works, the better for us.
It’s just that today there are a lot of brokers who have openly dirty policies against their clients. Naturally, you can’t invest your money in this kind of platform.
Select a PAMM account
Now we have come to the most interesting moment - choosing a PAMM account. At the first stage, I immediately recommend that you weed out accounts that I have been trading for a short time, since it is impossible to give an objective assessment of their work.
After this, you can take a closer look at other accounts and evaluate their trading performance. I strongly recommend considering accounts that have been trading for at least 4 months for potential investments.
At the same time, consideration of account profitability indicators will allow you to approximately determine what type of trading the manager adheres to on his account.
Based on the nature of trading, all PAMM accounts are usually divided into three large groups: aggressive, moderate and conservative. If we talk about aggressive accounts, then in this case managers can give huge profits, but the risks of investing in these accounts grow many times over.
In principle, such accounts often experience drawdowns exceeding 50% of the account. Specifically, in the case of moderate accounts, they have significantly lower returns, but the risks are not so high. Drawdowns on these accounts rarely exceed 35-40%.
In the case of conservative accounts, the profit here may not be the most impressive, but at the same time the minimal risks are significantly reduced.
But with all this, you should not think that aggressive accounts cannot be stable. I have seen a bunch of examples more than once when aggressive accounts live for years, yes, there are huge drawdowns, but the accounts do not merge.
However, this is possible in the case when the account manager is truly a master of his craft, and this is extremely rare these days.
//www.youtube.com/watch?v=NE9WiSxu2pk
Let's say you have decided on an account and invested money in it. In the future, I recommend that you constantly monitor the performance of your account.
This will help you understand how an account manager moves from one trading style to another. Let's judge logically, even a conservative trader can start trading aggressively, which will once again increase the load on the account.
I can advise you to roughly divide the entire capital into several parts and invest it in several accounts. Why is this necessary?
Let's say you invested your funds in 4 accounts, and during the month 1 of the accounts showed poor dynamics. Thus, there is a possibility that the remaining 3 accounts will work normally and will offset the losses received from one account. Plus, you can expect quite a good profit from such an approach.
Be sure to study the market
Today you can meet many people who will say that investing in PAMM accounts is a banal scam and nothing more. Is it really that bad?
In fact, such sayings can be found from those people who know nothing about investing.
They wanted to make money quickly, but naturally, everything turned out the other way around. I can say one thing, as in any other business, investing in PAMM accounts requires the presence of certain knowledge, otherwise you should not count on any success.
Understand correctly, if you simply try to invest your funds with luck, then you should not expect anything other than losses, I assure you. You can earn money only if you have studied many nuances.
Drawing conclusions
In principle, investing your funds in PAMM accounts will allow you to create a very good passive income, without the need to trade yourself.
To earn money, you will only need to choose suitable managers and competently form your investment portfolio. Your investment portfolio may include aggressive, moderate, and conservative accounts.
In fact, it is important that you are confident that these accounts are managed by truly knowledgeable traders. In any case, if you approach this matter with all responsibility, you can fully count on profit.
In addition, never forget about diversification, which will allow you to systematically reduce the risks of investment and receive maximum income from your investments.
Note: There is an evaluation form attached to this post. To evaluate it, go to the website.
The authorities urged Russians to hurry up and buy housing. This statement was made by Deputy Minister of Construction and Housing and Communal Services Nikita Stasishin at the international investment forum Proestate-2018. But before panic overwhelms you, let’s look together at the true reasons for such a loud statement.
First, it’s worth understanding: repetition “ black tuesday“There will be no 2014, when the ruble collapsed overnight. This is confirmed by both professional experts and objective facts of the Russian economy. Moreover, the growth of the dollar will not boost housing prices. And that's why.
Speaker - Yakov Volkov, General Director of the Active group of companies (including AN Headquarters and Arendafon), St. Petersburg.
More new buildings - lower prices
Firstly, the real estate market has changed significantly over the years. The number of developers is growing, and, consequently, the supply of primary housing is growing. In the summer of 2018 alone, construction turnover showed an increase of 5% in monetary terms, which is a fairly optimistic figure for the low season. Therefore, in the struggle for buyers, companies are more concerned with creating attractive offers than with inflating prices.
Secondly, in 2014, real estate was practically the only available investment instrument. That is why Russians then rushed to buy apartments. Now, stock exchanges, securities, hedge funds and other financial markets give ordinary people the opportunity to increase their savings with their help.
Speaking of savings, if you have them, then you belong to a very small group of compatriots. And this brings us to the third, perhaps the main reason holding back the rise in housing prices. The population simply does not have significant savings left to trigger a buying boom. And if there is no high demand for real estate, there is no reason for prices to rise.
But let’s say you’ve already decided to look for an apartment. In this case, there is no need to delay the purchase. Especially if you are going to use borrowed funds. In September, the Central Bank decided to increase the key rate. This leads to an automatic increase in mortgage prices. Therefore, you must understand that first of all you need to assess your financial capabilities, and not the level of housing prices. And if you don’t have enough personal funds to buy an apartment, now is the time to buy a home on credit.
Disappearing resale: the pursuit of cheap offers
The “washing out” of cheap apartments from the secondary real estate market is another good reason to part with your savings right now. Owners of secondary properties, having sensed investors' interest in the properties, are no longer in a hurry to put up inexpensive options for sale. Experts predict that from the end of 2018 prices for this category of real estate will begin to rise rapidly. So here are a few reasons to buy.
Secondary housing is one of the most highly profitable investments. If you are lucky enough to buy an inexpensive property, then within a year you will be able to resell it with a profit of 20-30%. Agree, this is a good way to increase and multiply your savings. But first find out on the secondary housing market.
Secondary housing can also be rented out. But making such a business model profitable will typically require investment. For example, cosmetic repairs. The profitability of the object will be at the level of 5-7%. No worse than bank deposits.
Conclusions:
- If you are not ready to buy a home now, you should not urgently reshape your family budget and go on a starvation diet for the sake of extra square meters. In the next couple of years, a significant jump in prices on the new building market is not expected.
- Those who have already decided to purchase on credit urgently need to collect documents to obtain a mortgage. According to experts, interest rates will begin to rise in the coming months (?). So the numbers that you see from banks now are the most profitable.
- It's time for savings owners to invest their money in secondary housing. Looking for a property for resale or rental. But remember, location and infrastructure matter most. Appearance comes last among purchasing requirements.
Let's talk about investing, money, business and overall success in this field of activity.
I will not stop repeating that a person must constantly develop comprehensively, and not narrowly, purposefully, in one thing (this is why I broadcast on a variety of topics, and not just one thing, about sports, as was before).
Because our world is material - not a single person can feel good without money.
I hope that the articles that I will make from time to time will help many people to emphasize something for themselves, draw some appropriate conclusions, invest wisely, save and increase their capital...
I want to devote the first issue to the most important primary rules of investing, that is, let’s talk about how to properly invest money anywhere...
For those who don’t know, investing is investing money with the goal of making a profit in the future.
In my opinion, money should work, for this it needs to be invested somewhere. In the long term, saving and storing money is not wise, in my opinion, because of inflation, money depreciates.
Inflation eats up money. Therefore, in order to save and increase your money, you need to invest it somewhere (invest) and in order to be able to INCREASE (and not lose), you need to do it as correctly as possible.
The first thing to start investing is to acquire the necessary knowledge.
This means that it is best to invest your first money in yourself, and not somewhere else (stocks, gold, cryptocurrency and others). Investing in yourself always pays off many times over. Do not ignore this advice, if only because the two richest people in the world, Bill Gates and Warren Buffett, recommend doing so.
Only after you have the necessary knowledge and understanding of investing, different financial instruments, the principles of their operation, expected profits and risks, can you move on to practice.
#1. Control risks...
One of the extremely important principles of investing is to control risk.
- Risks are something you will inevitably encounter if you decide to invest in anything.
- Risks are something that absolutely every investor inevitably faces.
Tip 1: before investing your money anywhere, be sure to think about how much you can lose and only then how much you can earn (receive). Risk is what you need to think about first!
Trivial advice? Agree! But as practice shows, many people (newbies) think the other way around.
DOLLAR signs “light up” in their eyes)) and the poor people rub their hands in anticipation of millions, but in reality, very often they lose their money, for example, due to overestimating their strengths and experience.
Risk is an integral part of absolutely any investment and must be controlled.
To do this, you need to be able to correctly perceive probabilities and draw correct conclusions based on them.
#2. Carefully analyze the proposal from A to Z
Emotionally, people often make mistakes.
Your task is to be completely confident in what you are doing and why. Understand?
I’m trying to tell everything in a humane way (and it will continue to be the same). No fancy words, etc.
Your task as an investor is to fully analyze the proposal from A to Z without being distracted by anything.
You need to know your investment as well as possible.
And don’t run away like the fool Ivanushka from the bay, floundering on emotions, invest money, with glass eyes in the form of DOLLAR... because everyone is doing it or at the moment there are some promotions, special offers, unique offers just for you, only now , hurry up, don’t miss the opportunity, the most favorable conditions, limited time, hurry up, otherwise you won’t have time, low price and much, much more.
Constant pressure, our world is full of various manipulations to varying degrees.
I’m telling this in words that you now understand—which are now clear to everyone.
But in reality - manipulations in certain industries/etc. sometimes they are so skillful (professional) that for many people (especially beginners) they are not noticeable...
Your task is to be completely cool and focused on your work.
You don’t need to be fooled and invest money quickly - without thinking everything through from A to Z! No! You must think through and analyze all options for the development of events. And based on them - on the basis of all the work done - on the basis of all the information - all the analytics / in-depth analysis - make the right conclusions.
Deep analysis does not guarantee your success, but at the same time it will increase your chances of success.
At the same time, this process should not last too long, otherwise you might miss the moment...
#3. Invest as much as you are willing to lose
Advice 3: under no circumstances invest with your last money or, even worse, with money borrowed or on credit, etc. because this is not reasonable and if it fails, it can all end very badly...
Invest only your own funds that are not your last and invest as much as you can afford to lose without any “damage” to yourself and your family.
That is, to put it simply, when you invest money, you kind of mentally say goodbye to it.
It shouldn’t be that you have invested = and are directly praying for the business to burn out, because you bet everything on this to happen. That is, we return to rule No. 1. Control the risks and be prepared to lose everything.
After all, if you fail - when you have bet everything - you will have nothing left and you will end up in the ass.
And being in the ass will make you feel very bad. Therefore, I categorically do not recommend making this mistake.
#4. Diversify your risks
To put it simply, you shouldn’t put all your eggs in one basket.
Otherwise, all your eggs (investments) may break/disappear in an instant.
By diversifying your risks, you have several baskets of eggs.
If one basket fills up, you have other baskets. That is, you know, an analogy, right?
Never invest everything in one thing/project (basket).
Personally, I allocate my investment capital based on potential risks.
#5. Have a financial airbag
Tip 5: before investing anywhere, be sure to create and have a financial cushion (in my opinion, it is vital for absolutely every person for his own protection).
We live in a material world - without money you are nobody and there is no way to call you.
Therefore, in simple terms: a financial cushion is the amount of money that, in the event of the disappearance of a source of income (or an unsuccessful investment, failure, loss of money), will give you and your family the opportunity to live for three/six months (minimum), without any deterioration in quality of your life.
You can create a financial cushion regularly (for example, monthly) by setting aside some part (this is best for you - the figure is individual for everyone) of financial income.
Congratulations, administrator.
All the previous crises that Russia has experienced in recent years cannot be compared with the crisis that has occurred today. Accordingly, the consequences of such a financial decline will be much more global than in all previous times. Therefore, the question of where to invest money during a crisis is becoming increasingly relevant. Experts predict that the inflation rate in 2015 will be about 15%. And if we take into account the fact that the national currency has practically fallen, the cost of oil has been reduced to the limit, and the sanctions imposed by the West may be extended, then the situation seems completely disastrous. That is why the majority of Russians decided to look for effective investment instruments in order not only to preserve their savings, but also to earn money during a turning point.
Reasons for the crisis in 2015
Where is it profitable to invest money today? This dilemma plagues many Russian citizens. But in order to understand this issue, it is necessary to find out the reasons for the economic crisis in Russia in 2015. Today, almost all analysts in the world are waging “fierce battles” on this topic. If we collect all the options and votes for and against, we can identify several key areas that led to such an acute crisis in the country. The first and main reason for the decline is the sanctions imposed by the European Union and the West. The second decisive factor is the cost of black gold, which in the period 2014-2015 decreased in price by almost 50%. The third reason is the outflow of capital, which was provoked by corruption, as well as the situation related to the conflict in Ukraine. All this led to the fact that the value of the national currency dropped to a historical low, and Russian goods ceased to be competitive. All this negatively affected, first of all, the standard of living of ordinary Russians, who today are wondering where it is better to invest their money.
Real estate: pros and cons
According to statistics, real estate has always been and remains one of the most profitable types of investments. Where to invest money in a crisis, if not in square meters, which always remain in price? This financial instrument is considered the safest in the long and medium term. Experts advise purchasing real estate during a crisis. The only thing you shouldn’t do is wait until the cost of housing reaches its “bottom,” professionals emphasize. This significantly increases the risk of fraud in the square meter market. It is worth paying attention to those real estate options that will be profitable in the future. You can buy living space in a building that is still under construction; in the future, the cost of such square meters increases significantly. Experts advise avoiding the purchase of suburban and non-residential real estate, as well as the purchase of land that is located far from infrastructure. Most likely, these square meters will not be of interest to buyers in the coming years.
Gold or...
Should I invest money in gold? According to experts, today this will be extremely profitable. After all, this type of investment is the most effective and reliable in times of political and economic instability. If you look at the cost of currencies and energy resources, you can draw very positive conclusions about what will happen to gold in the coming years. Professionals say that this precious metal will show excellent results in the next few years. Many investors use this simple method when the price of oil begins to rise (which can already be observed today). Trying to diversify risks, investors buy gold, because it is during this period that its price soars by 1.5-2 thousand dollars per ounce. Although, many experts believe that other metals would be good investments, for example: silver, palladium, platinum, osmium and others. All of them will only become more expensive in the future in 2015-2016.
Stable deposit
One of the most favorite financial instruments among Russian citizens is a deposit. After all, what could be easier than investing money in a bank at stable interest rates? In addition, today the Central Bank of Russia offers its depositors quite tempting conditions. The key rate, which the Central Bank raised at the end of 2014, had a great impact on interest rates, and many citizens had the opportunity to use this financial instrument with greater benefit. The only thing that experts can advise investors is to carefully consider the choice of a banking organization. First of all, it is worth considering its rating indicators, which are compiled by independent rating analytical agencies. High interest rates may not always indicate the reliability and stability of a bank. Quite the contrary.
Stock market or world of shares
Where to invest money in a crisis? Every successful trader will confidently say that this must be done in the stock market. Investing money in stocks is almost half the success today. It is the stock market that shows the highest rates of passive income. But, unfortunately, not everyone will be able to manage securities. This requires not only a certain amount of knowledge, but also experience in the stock market. Of course, you can invest money in shares and use the trust management service, which is becoming increasingly popular today. After all, as experts say, today the value of securities, even of the largest Russian enterprises, has dropped critically. And this, in turn, provides an excellent opportunity to acquire securities that in the future will not only bring stable dividends, but will also show high growth by next year. The only risk that analysts point to is the manager’s low level of knowledge, so you should pay special attention to choosing a manager!
Mutual funds. Is it worth it?
As mentioned earlier, the stock market is profitable. Where to invest money during a crisis in order not only to successfully survive this period, but also to remain in the black? Of course, in stocks and bonds! After all, even if an investor is completely unfamiliar with the stock market, he always has the opportunity to use this financial instrument by collaborating with mutual investment funds (UIFs). The advantages of mutual funds are that the investor can use even small amounts to cooperate with the management company. At the same time, profitability ranges from 15% to 60% per annum, which significantly exceeds earnings from a standard deposit. The only disadvantage in using this financial instrument is the high dependence of profitability on the selected sector of the economy and low interest in profit.
PAMM account. Leader 2014
Where is it profitable to invest money during the 2015 crisis? Perhaps it’s worth asking Forex market players about this. After all, at the end of 2014, it was PAMM accounts that took first place in terms of high income. In essence, PAMM accounts are an investment of one’s own funds into an account in trust for a trader who actively works in the Forex market. Such investments are made on special websites - registered Forex brokers. It is very important to familiarize yourself with all the information related to the work of brokers. The advantage of PAMM accounts is obvious, because the profitability of some shares reaches 100-150% per year. But it is worth considering that the risks here are quite high. The amount of income that the investor will receive at the end of the transaction will depend on how correctly the manager chooses the strategy. Therefore, it is very important to take seriously the choice of a trader who will manage assets in the future. Unfortunately, high risks and taxes often scare off potential Forex clients.
Where is the best place to invest?
The 2015 crisis, according to analysts and experts, will be terrible in its consequences. This is why it is so difficult to say where it is better to invest money. Perhaps there is no exact answer to this question. You can endlessly compare the financial instruments and products that the modern world offers us. But, in the end, it turns out that it is more profitable to use the financial instrument that the investor knows how to use well. After all, it is precisely the low level of knowledge and lack of experience that often leads to the fact that the investor loses not only possible income, but also all his savings. Well, for those who like to take risks, experts suggest using such non-standard types of investments as: private businesses, antiques and art objects, startups. These areas, if managed correctly, can generate significant revenues in the near future. For those who prefer stability and confidence, professionals advise distributing funds across several investment instruments. And most importantly, do not forget that “money is a good servant, but a bad master”!
Wealth is determined not by the amount of money you have, but by the correct direction of thoughts about money and the ability to handle it financially competently. You will continue to have money problems until you start thinking differently. Rich people do not scold fate, but build it themselves (with their daily actions).
The rich and the poor differ from each other only in their way of thinking. Understanding which way of thinking (“rich” or “poor”) predominates in you is quite simple. Remember your reaction to compliments and gifts. Do you accept them with confidence and gratitude? Or do you feel embarrassed and feel like you are unworthy of them?
Wealth is not determined by the amount of money you have
If the feeling of awkwardness prevails, then I have bad news for you...
You will remain poor until you start thinking like a rich (financially wealthy) person.
It is impossible to get rich without changing the course of your thoughts and habitual behavior:
- If a person with a “poor” mindset unexpectedly receives a large amount of money (a bonus, an inheritance, winning a lottery, etc.), then this money will not stay with him for very long.
- There is a lot of evidence to support this.
One of the questions I ask my clients during consultations is: “Do you consider yourself a rich or poor person”?
1) People tend to answer this question quickly.
But calling themselves “poor”, they think only about the amount that is in their wallet (or bank account).
2) However, wealth is about the mind, not about the wallet.
A person who can become truly rich will never become poor again. Yes, he can go broke or lose money in an unsuccessful project. But never become poor!
3) The difference in the way of thinking between the rich and the poor is too huge. The difference between the financial results of their activities is just as huge, isn’t it?
It is enough to understand that the way of thinking affects life no less than actions:
- And anyone who begins to think and handle their money like a rich person will sooner or later definitely become one.
- And the poor remain eternally poor, consoling themselves with thoughts of a cruel and unfair fate.
4) One of the philosophers of Ancient Greece noticed one interesting pattern - “We are given exactly as much as we are ready to take.”
This very accurately reflects the essence of relationships with money:
- Because until we are ready for them, they will not come into our lives.
- Or they will quickly leave us (remember how long your received salary or unexpected bonus is delayed?).
5) How do people with a “poor mindset” think?
“I am a worthless loser”, “money does not bring happiness”, “it is impossible to earn an honest living in this country”, “you cannot invest money in a bank, it will definitely burst”, etc. thoughts that reject money.
What do people who know how to be friends with money think?
“I create my own life”, “a crisis always brings new opportunities”, “everything in this life depends only on me”, “they love money”, “investments will make me rich”, etc.
- Wealth is not determined by the amount of money you have, but the right direction of thoughts about money and the ability to handle it financially competently.
- You will continue to have money problems until you start thinking differently.
- Rich people don't blame fate, but they build it themselves (with their daily actions). published.
Alexander Evstegneev
P.S. And remember, just by changing your consciousness, we are changing the world together! © econet
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