forex fund management

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A PROPOSAL ON FUNDS/PORTFOLIO MANAGEMENT IN FOREX AND COMMODITIES MARKET FOR INDIVIDUALS/FINANCIAL INSTITUTIONS WRITTEN BY OBASEKI O. PHONE NO: +234-8056055812 E-Mail: [email protected] ©November, 2012

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

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Page 1: Forex fund management

A

PROPOSAL

ON

FUNDS/PORTFOLIO MANAGEMENT

IN

FOREX AND COMMODITIES MARKET

FOR

INDIVIDUALS/FINANCIAL INSTITUTIONS

WRITTEN BY

OBASEKI O.

PHONE NO: +234-8056055812

E-Mail: [email protected]

©November, 2012

Page 2: Forex fund management

Disclaimer

General/Risk

Foreign exchange trading and investment in derivatives can be very speculative and may result

in losses as well as profits. Foreign exchange and derivatives trading is not suitable for many

members of the public and only risk capital should be applied. The proposal does not take into

account special investment goals, the financial situation or specific requirements of

individual/Financial Institution. You should carefully consider your financial situation and

consult your financial advisors as to the suitability of your situation prior to making any

investment or entering into any transactions.

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Page 3: Forex fund management

FOREX

The Foreign Exchange Market – more commonly known as FOREX is a global market for

trading currencies. It handles a huge volume of transactions 24 hours a day, 5 days a week. Daily

exchanges average approximately $2 trillion (US dollars). The Foreign Exchange Market was

established in the early 1970s with the abolishment of fixed currency exchanges under President

Nixon. Currencies became valued at 'floating' rates determined by supply and demand. The

FOREX is made up of about 5,000 trading institutions such as international banks, central

government banks (such as the US Federal Reserve), and commercial companies and brokers for

all types of foreign currency exchange. There is no centralized location for the FOREX – major

trading centres are located in New York, Tokyo, London, Hong Kong, Singapore, Paris, and

Frankfurt, and all trading is by telephone or over the Internet. Businesses use the market to allow

them to buy and sell products in foreign countries. However, most of the activity on the FOREX

is 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 $2

trillion every day. The huge volume of FOREX means that it is one of the most liquid markets in

the world. There is always a buyer and seller for any type of currency because the world

economy relies on the movement of goods from country to country.

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Page 4: Forex fund management

The FOREX is not located in any one location. Trading markets are located world-wide and

because of difference in time-zones trades can be made 24 hours a day, 5 days a week. Trading

begins in Sydney, Australia on Monday morning (Sunday afternoon New York time) and

continues nonstop until Friday afternoon New York time.

Risks of FOREX Trading

Despite the claims you may see on some Forex web sites, Forex is not risk-free. You are trading

with large sum of money and there is always a possibility that trades will go against you. There

are several trading tools, however, that can minimize your risk, and with caution, and above all

education, 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. Every

FOREX trader should have a trading strategy, knowing when to enter and exit the market and

what kind of movements to expect. Developing strategies requires education, the key to limiting

FOREX risk. At all times follow the basic rule: Do not place money in the FOREX that you

cannot afford to lose. I can't overemphasize this enough; if you can't afford to lose your money

then FOREX trading is not for you. Every FOREX trader needs to know at least the basics about

technical analysis and how to read financial charts.

Risks

As 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 the

currency moves just one cent against you, you lose $1000. For this reason I do not recommend a

margin accounts that give you more than 100 times your initial deposit (some give up to 400

times) because of the unnecessarily high risk of large scale loss. FOREX trading, however, has

several methods to limit loss. Stop loss orders automatically close your position if the value of

the currency crosses a pre-determined point. Stop loss orders allow you to limit your losses to a

specified amount while still allowing potential profit taking.

An often overlooked risk is the possibility that your broker may close your position if your

potential losses approach the balance of your margin account. You may be riding out a down

trend with the expectations of a market reversal, but unless you replenish your margin account

you may find your position has been closed. If this happens, you lose your entire margin.

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ABOUT ME

I am a Fund Manager and the writer of Kobasfx Forex Strategy on the internet and I am willing

to 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 of

investor’s capital and a high level of returns on client’s investment. I provide a secured, safe and

100% guaranteed investment environment to my client’s capital. With a very secured trading

system that I developed over the period of 7 years of trading, which promised to give me the best

time of investment/trading with no fear. Therefore, I am different from other Traders or Fund

Managers 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 foreign

exchange market. Also, stay out of the day to day gyration of the market to focus on the right

trend and guide against any market risk. My goal and ambition is to provide client with

significant returns on their investment. I will strive to establish one on one and long-time

working partnership with my client. In doing so, I develop trust and co-operation necessary for

creating 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 my

utmost priority.

b) Set clear targets for continuous improvement, and monitor these targets to ensure that they are

met.

c) I establish and enable Fund Manager and client accountability and transparency for the trading

performance

Mission

I aim to achieve significant return on clients’ funds in excess of 50% - 100% per annum or even

more in order to develop trust and co-operation necessary for creating wealth, providing a wide

range of financial and investment advisory/consultancy support services to my esteemed clients.

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Values

I 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 SERVICES

The world of currency speculation is so large and allows anybody who meets the minimum

criteria to participate. Masses of untrained, poorly trained and ill informed amateurs participate

in it and guess what...... they lost all their money! This is why a lot of people believe currency

market is RISKY and unsafe…they are right. Currency speculation is risky for amateurs but

provides 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. Funds

are 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 months

Proposed Return on Investment or Total Net Profit: 50% - 100% or more

Fund 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 a Proposed Return on Investment of 50%.

Invested Amount or

Deposit (IA) ($)

Risked Amount of

the Investment

(RAI) (20% of IA)

($)

Minimum Balance

After Trading

(IA – RAI) ($)

Proposed Return on Investment

(PRI) 50% of IA

($)

Account Balance

(AB) (IA + PRI)

($)

Manager Charges

(MC) (30% of PRI)

($) Negotiable

Total Balance

after Charges

(AB – MC) ($)

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

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How I Manage Your Account

A managed Forex account is about freedom and flexibility. This type of account is meant for

people on the go who simply don’t have the time to monitor the market all day. Ideally, a

managed account works your money hard for the best return. You should feel comfortable with

your Fund Manager – this is the person, and company, on your side – think of them as your

personal marketplace expert. A managed account puts capital management in the hands of

professionals who have extensive experience in the currency markets.

The Fund manager will only take positions for your account. The account remains in your name

at 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 your

funds is made possible by simply authorising an electronic payment from the trading account to

the 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 investor's

name.

• 100% transparent, funds stay under client's 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.

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Page 8: Forex fund management

• 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 balance after trading in Loss)Plan Duration: 6 months Proposed 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 if PRI is achieved).

After 5 months of trading, account balance reached £751.43. Therefore, we decided to withdraw the 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).

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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 the

Invested amount of £500), after trading on the account, it increased to £751.43 (over 50% return

on Investment) within a period of five months of trading. I never traded with more than 2% (0.01

Lot size) of the invested amount on a position, a tight stop loss is in place to control losses in

case the market goes against me. You have also noticed the discipline part of my trading system

after going through the statement of the account; you would have realized that I did exactly what

I 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 – 8056055812

e-Mail: [email protected]

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