This march I decided to play a bit in “investment game”. As a practice, and possible source of profit, I started looking for the way to invest those 200$ that were still in my pocket after salary day in february. However it appeared, that my options are quite limited.
Hedge funds and investment banks all required much more funds starts (minimal investments starting at 10 000$) than I ever held in my hands. Depositing those money in bank also didnt seem too time effective (with interest of 5% a year…for 200$….). One of my friends was trading forex at time, so I decided to start up a demo account on one of the brokers sites. However in few days I realized that everything is much more complicated and much more times is needed to master the main principles of forex trade.
At last, I found a way to invest money. My choice fell on PAMM accounts- basically numerous micro investors giving a trader funds to trade. Out of profit the traders takes from 5 to 40%, depending on traders offer. This platform is interesting for investment, as in highly volatile market of currency, 100% profits in a month are not that uncommon. Even with ~20% paid to traiders- this is a high percent.
After 3 months of this experiment, my final balance was 250$, 50 of them being pure profit. During these 3 months I invested different sums in around 20 traders, all having different trading styles (scalping trade, careful trade etc).
50$ is 20% increase in funds in 3 months. This is around 7% a month- way more than any bank deposit could offer.
Would you consider PAMM as a savvy investment, or would you not go an invest into such an unpredictable and volatile market?