Forex fund management

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Forex, Stocks and Commodities Fund/Portfolio Management Proposal for Investors/Financial Institutions.

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Forex fund management

  1. 1. A PROPOSAL ON FUNDS/PORTFOLIO MANAGEMENT INFOREX AND COMMODITIES MARKET FORINDIVIDUALS/FINANCIAL INSTITUTIONS WRITTEN BY OBASEKI O. PHONE NO: +234-8056055812 E-Mail: fxextract@yahoo.com ©November, 2012
  2. 2. DisclaimerGeneral/RiskForeign exchange trading and investment in derivatives can be very speculative and may resultin losses as well as profits. Foreign exchange and derivatives trading is not suitable for manymembers of the public and only risk capital should be applied. The proposal does not take intoaccount special investment goals, the financial situation or specific requirements ofindividual/Financial Institution. You should carefully consider your financial situation andconsult your financial advisors as to the suitability of your situation prior to making anyinvestment or entering into any transactions. 2
  3. 3. FOREXThe Foreign Exchange Market – more commonly known as FOREX is a global market fortrading currencies. It handles a huge volume of transactions 24 hours a day, 5 days a week. Dailyexchanges average approximately $2 trillion (US dollars). The Foreign Exchange Market wasestablished in the early 1970s with the abolishment of fixed currency exchanges under PresidentNixon. Currencies became valued at floating rates determined by supply and demand. TheFOREX is made up of about 5,000 trading institutions such as international banks, centralgovernment banks (such as the US Federal Reserve), and commercial companies and brokers forall types of foreign currency exchange. There is no centralized location for the FOREX – majortrading centres are located in New York, Tokyo, London, Hong Kong, Singapore, Paris, andFrankfurt, and all trading is by telephone or over the Internet. Businesses use the market to allowthem to buy and sell products in foreign countries. However, most of the activity on the FOREXis from currency traders who use it to generate profits from small movements in the market.There are many advantages of trading in FOREX.● Liquidity - Because of the size of the Foreign Exchange Market, investments are extremely liquid. International banks are continuously providing bid and ask offers and the high number of transactions each day means there is always a buyer or a seller for any currency.● Accessibility – The market is open 24 hours a day, 5 days a week. The market opens Monday morning Australian time and closes Friday afternoon New York time. Trades can be done on the Internet from your home or office.● Open Market – Currency fluctuations are usually caused by changes in national economies. News about these changes is accessible to everyone at the same time – there can be no insider trading in FOREX.FOREX is the largest financial market in the world; it handles transaction worth around $2trillion every day. The huge volume of FOREX means that it is one of the most liquid markets inthe world. There is always a buyer and seller for any type of currency because the worldeconomy relies on the movement of goods from country to country. 3
  4. 4. The FOREX is not located in any one location. Trading markets are located world-wide andbecause of difference in time-zones trades can be made 24 hours a day, 5 days a week. Tradingbegins in Sydney, Australia on Monday morning (Sunday afternoon New York time) andcontinues nonstop until Friday afternoon New York time.Risks of FOREX TradingDespite the claims you may see on some Forex web sites, Forex is not risk-free. You are tradingwith large sum of money and there is always a possibility that trades will go against you. Thereare several trading tools, however, that can minimize your risk, and with caution, and above alleducation, the FOREX trader can learn how to trade profitably while minimizing losses.FOREX trading can be risky, but there are ways to limit risk and financial exposure. EveryFOREX trader should have a trading strategy, knowing when to enter and exit the market andwhat kind of movements to expect. Developing strategies requires education, the key to limitingFOREX risk. At all times follow the basic rule: Do not place money in the FOREX that youcannot afford to lose. I cant overemphasize this enough; if you cant afford to lose your moneythen FOREX trading is not for you. Every FOREX trader needs to know at least the basics abouttechnical analysis and how to read financial charts.RisksAs there is increased profit potential, there is also increased loss potential. If you are not careful,your entire margin account could quickly be wiped out. If your margin account is 1% and thecurrency moves just one cent against you, you lose $1000. For this reason I do not recommend amargin accounts that give you more than 100 times your initial deposit (some give up to 400times) because of the unnecessarily high risk of large scale loss. FOREX trading, however, hasseveral methods to limit loss. Stop loss orders automatically close your position if the value ofthe currency crosses a pre-determined point. Stop loss orders allow you to limit your losses to aspecified amount while still allowing potential profit taking.An often overlooked risk is the possibility that your broker may close your position if yourpotential losses approach the balance of your margin account. You may be riding out a downtrend with the expectations of a market reversal, but unless you replenish your margin accountyou may find your position has been closed. If this happens, you lose your entire margin. 4
  5. 5. ABOUT MEI am a Fund Manager and the writer of Kobasfx Forex Strategy on the internet and I am willingto offer services to individuals or corporate investors worldwide. I am an experienced trader,financial analyst, and account manager. My investment philosophy is based on preservation ofinvestor’s capital and a high level of returns on client’s investment. I provide a secured, safe and100% guaranteed investment environment to my client’s capital. With a very secured tradingsystem that I developed over the period of 7 years of trading, which promised to give me the besttime of investment/trading with no fear. Therefore, I am different from other Traders or FundManagers because I am very serious about my services and customer satisfaction.I apply different method of trading both technical and fundamental to generate profit in foreignexchange market. Also, stay out of the day to day gyration of the market to focus on the righttrend and guide against any market risk. My goal and ambition is to provide client withsignificant returns on their investment. I will strive to establish one on one and long-timeworking partnership with my client. In doing so, I develop trust and co-operation necessary forcreating true and lasting wealth for my client.Why you need to do business with ME?a) I maintain systems to manage investor fund responsibly with capital preservation as myutmost priority.b) Set clear targets for continuous improvement, and monitor these targets to ensure that they aremet.c) I establish and enable Fund Manager and client accountability and transparency for the tradingperformanceMissionI aim to achieve significant return on clients’ funds in excess of 50% - 100% per annum or evenmore in order to develop trust and co-operation necessary for creating wealth, providing a widerange of financial and investment advisory/consultancy support services to my esteemed clients. 5
  6. 6. ValuesI conduct my business in a highly ethical manner and have the following values as my guide:Accessibility, Mutual Respect, Focus, Excellence, Professionalism and Partnership.INVESTMENT SERVICESThe world of currency speculation is so large and allows anybody who meets the minimumcriteria to participate. Masses of untrained, poorly trained and ill informed amateurs participatein it and guess what...... they lost all their money! This is why a lot of people believe currencymarket is RISKY and unsafe…they are right. Currency speculation is risky for amateurs butprovides a large and regular stream of income for Experts.I offer Investment Management Service plan for Individuals or Financial Institutions:This plan is targeted at investors who seek returns and maintain liquidity at the same time. Fundsare mostly traded on the Foreign Exchange and Commodities Market using my trading system.Minimum Investment: $10,000(For Private Investor) or $50,000(For Financial Institution)Plan Duration: 6 - 12 monthsProposed Return on Investment or Total Net Profit: 50% - 100% or moreFund Manager Charges: 30% of the Total Net Profit only (but negotiable)Table below: Showing the expected returns on investment after 6 months of trading at aProposed Return on Investment of 50%. Invested Risked Minimum Proposed Account Manager TotalAmount or Amount of Balance Return on Balance Charges Balance Deposit the After Investment (AB) (MC) after (IA) Investment Trading (PRI) (IA + PRI) (30% of PRI) Charges ($) (RAI) (IA – RAI) 50% of IA ($) ($) (AB – MC) (20% of IA) ($) ($) Negotiable ($) ($) 10,000 2,000 8,000 5,000 15,000 1,500 13,500 50,000 10,000 40,000 25,000 75,000 7,500 67,500 100,000 20,000 80,000 50,000 150,000 15,000 135,000 200,000 40,000 160,000 100,000 300,000 30,000 270,000 500,000 100,000 400,000 250,000 750,000 75,000 675,000 1,000,000 200,000 800,000 500,000 1,500,000 150,000 1,350,000 6
  7. 7. How I Manage Your AccountA managed Forex account is about freedom and flexibility. This type of account is meant forpeople on the go who simply don’t have the time to monitor the market all day. Ideally, amanaged account works your money hard for the best return. You should feel comfortable withyour Fund Manager – this is the person, and company, on your side – think of them as yourpersonal marketplace expert. A managed account puts capital management in the hands ofprofessionals who have extensive experience in the currency markets.The Fund manager will only take positions for your account. The account remains in your nameat all times and you have the ability to withdraw all or part of your funds at any point in time.Therefore, access to your funds is never restricted by a pre-defined notice period. Access to yourfunds is made possible by simply authorising an electronic payment from the trading account tothe receiving account of your choice.Featured Benefit of Managed Accounts • Managed Account clients open and fund their own accounts directly with the broker. • Funds are not commingled with any other funds because the account is in the investors name. • 100% transparent, funds stay under clients control at all times, Fund Manager has no access to client funds. • Funds are always deposited and withdrawn directly by the investor. • Liquidity of assets - accounts can be closed at any time and funds dispersed by the broker once all open positions are closed. Note: Closing or taking a substantial amount out of your account without notifying the Funds Manager will affect your earning performance, or potentially disrupt a trade in progress. • The investor has read-only access to the managed account at any given time, which enables him to track the account equity and activity 24/7. • Clients can access broker status reports at any time. 7
  8. 8. • Funds Manager cannot withdraw money from the account. • All accounts are actively managed and monitored continuously while trades are in progress. • Substantial capital growth • Maximum Drawdown: up to client to choose from 20 - 30% at the beginning of trading. • No upfront fees, only net profit share payable as a percentage of capital growth (30% but negotiable).Detailed Statement of a Client’s Account recently Managed by me is shown below:Trading condition agreed between me and my client for the trading account below are:Invested Amount (IA): £500Risked Amount of the Invested Amount (RAI): 20% of Invested Amount (20% of £500 =£100).Minimum Balance After Trading (IA – RAI): £500 – £100 = £400 (Least account balanceafter trading in Loss)Plan Duration: 6 monthsProposed Return on Investment or Total Net Profit (PRI): 50% - 100% or more (at least£250).Fund Manager Charges (MC): 30% PRI (30% of at least £250 = minimum of £75 ifPRI is achieved).After 5 months of trading, account balance reached £751.43. Therefore, we decided to withdrawthe Total Net Profit (£751.43 – £500 = £251.43), the Fund Manager Charges (30% of £251.43= £75.43) was paid and the Investor received the sum of (£251.43 – £75.43 = £176). 8
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  12. 12. As you can see on the account statement above, the account was funded with £500 on May 21,2012. We agreed that the account equity must not fall below £400 (by deducting 20% of theInvested amount of £500), after trading on the account, it increased to £751.43 (over 50% returnon Investment) within a period of five months of trading. I never traded with more than 2% (0.01Lot size) of the invested amount on a position, a tight stop loss is in place to control losses incase the market goes against me. You have also noticed the discipline part of my trading systemafter going through the statement of the account; you would have realized that I did exactly whatI promised my client at the commencement of the business.If you are willing to do business with me or for more Enquiries, you can contact:Name: Obaseki O.Tel: +234 – 8056055812e-Mail: fxextract@yahoo.com 12

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