Back Into Forex Trading, But As A Passive Trader Using PAMM


This week I set up a new forex account with Alpari. I had done some forex trading before, 2014 to 2016, and lost all the money I put in. The painful part is it was just when I thought I had figured it out and had patiently traded with some gain for more than eight months, then in days I lose everything.

I managed, though, to come away with one strong learning -- I can't successfully do manual forex trading. So I had given up trying to trade myself. This leaves me with two options -- use an automatic always on robot trader or invest my money with successful traders sharing profits with them (called PAMM investing). PAMM stands for Percentage Allocation Management Module, a very long phrase for you sharing the profit with another trader who you let trade with your money and you bear all the loss (can't share that one with the trader).  I already have some experience with an auto robot trader, all the small consistent profit I made during my almost two year stint with active forex trading were by an auto trader software I bought and run almost always. It required my laptop being always on and connected to the internet, then I must remember to start the trading application every time I restart or power on my laptop.

This time I decided to go with the PAMM one. And so far it's giving some good results. Already making profits in just two days. The main advantage to it is I can forget about it. Go on with my other hustles without negatively impacting how that investment does. The main work is upfront, picking a very reputable forex broker that has a very robust trading and investment system with enough long-time traders with verifiable results of their trading success in the PAMM system. Alpari managed to edge out the others I checked out and the one I previously used (instaforex). And that's not the end, you have to also pick a PAMM manager who has over three years consistent success and not very volatile trade results. Again, I managed to find a couple on Alpari. Unfortunately, past result is not a guarantee of future success. But that is all I have to make my decision. 

So now, I am back into the forex trading. I consider it as part of the speculative portion of my investment portfolio. I am also adding cryptocurrencies in that speculative mix. Already made up my mind to do Alpari's Crypto Fund that allows me to invest $100 and above in a cryptocurrency fund that is 40% Bitcoin, 30% Ethereum and 30% LiteCoin. I am just waiting for a good enough crash of the cryptocurrency market, then I'll invest for the long term -- years. The same way I do with my stock investments.

I still have the bulk of my investments in stocks and fixed income (bonds and money market). I am a risk lover and rather than go out to parties for adrenaline rush I prefer to have it from taking highly intellectual risks. Trying to predict the financial markets, stocks, bonds and currencies. I can stay indoor for days and get faster heartbeats than the guy at the nightclub. It sometimes make me jump up in the middle of the night to execute an idea.


  1. This post is very informative. Kudos Michael. Please what is the advantage of investing in cryptocurrencies through Alpari as against investing directly online?

    1. Sincerely, none and in fact, it is better/cheaper to invest directly. My problem is that currently selling and buying bitcoin in Nigeria is too much of a manual process (but I think if I search harder I will find one with easy process).


You can be sure of a response, a very relevant one too!

Click on Subscribe by Email just down below the comment box so you'll be notified of my response.