Since leaving FXOpen in any official capacity (I still talk to and help out if asked but its not my job and I have no obligation) I have started exploring the world for Options of transparent investments.
Having some spare cash to play with I took a look at term deposits. The fact that in the fine print the return range is from 0-5% to me is like saying we will market 5% to you but you could get 0. Lock my money up for 2 yrs for 0%? No thank you.
I moved on and did some work trading bonds. Perhaps bonds was a good option? Yes it is, but the entry level of this investment to me is a little steep. Albeit the market is much easier to trade and a lot of fun but I feel its not really an investment worthy of funds sub 100 million.
I did some google searches, and as you know theres so much bullshit on the internet eventually I got a headache and left that alone.
I trade FX, I pretty much always have. But you always should hedge yourself with other income methods as an individual trader. Hedging is what will get you through the tough times. If you are working a salaried job, you should also hedge your job security. Some people do this by having savings accounts. Others buy stock, some buy property. These are all a form of hedge to an income source.
Finally I was introduced to a man in London who trades FX like me, but in a far more conservative fashion. Originally I was extremely skeptical. Being the Director of a brokerage has its advantages. You can see the damage people inflict on themselves by over-trading and risking everything. So I put him to work testing. Basically I gave him a month to prove to me his ability, at the same time he was somewhat forced to reveal the basics of his strategy so I could stress test it on my own side and then only after that would he get my money.
The results of the first test are here: http://www.myfxbook.com/members/Russell/fxopen/520293/2vUzlmsHyHmkTWGHW1SV
Now to clarify something. Myfxbook uses a login to the trading platform account called an “investor password”. It provides the ability to see open and closed trades as well as the statement. If you provide this login, myfxbook lists you as verified. Being verified does NOT guarantee honesty. Some brokers have been known to manipulate myfxbook with data in order to gain clients. However this is the safest form of reporting that can be done without giving up secure information.
Anyway, this test was done on a stand alone account. It was the traders own money, and he put himself up to show me what he has got. I was pleasantly surprised at the conservative approach he takes to the market. Which allows me to be my aggressive self and my bad months will be made up by his good months.
After analysing the data, having many more talks with him and deciding to move forward, we set up this account: http://www.myfxbook.com/members/Russell/fxopen-pamm/525025/UpFLLKD2PI9bdR24Rf49
This account again is his own money, but it is on a transparent system run by FXOpen in Australia to allow me to invest into his account. The investments into his account do not show in the myfxbook as it would manipulate the data. So it only shows the original deposited amount when the account was opened.
After 4 days of him starting this account, I through in enough money to generate returns to support myself conservatively (not to buy a ferrari, just to buy food/pay rent/feed my kitty).
On top of the myfxbook accounts, I can now see a minute by minute data feed in the fxopen back office of account activity. I know when its trading, when its not trading and how much I am up and down. And will always be able to make an educated decision on whether I wish to invest more, or withdraw my money.
After some weeks, I finally convinced the trader to offer this investment to ‘regular’ people. Most traders search for rich people or hedge fund money but having dealt with them for a long time I felt its time something transparent with a good return was opened up to the worlds savers (meaning people who save money).
I got him to drop his minimum investment to USD$500.
So now you are questioning my motives for writing on my blog about something like this. After all you are the lovely people of e-sports. Questioning things is always going to occur.
My motives is to get people involved in transparent investing. Investments where unlike a savings account, you have some form of control over returns and outcomes. You are not dictated by regional interest rates or market movements but rather solid decision making. At the same time, you have access to your money 24/7.At the same time you know exactly what your money is being invested in and all the information available to you to make an educated decision on whether or not the investment is for you.
Will you get rich? Most probably not. But it could help with things like rent or holidays. Or even buying your GOM subscription (I dno if they still have GOM Subs).
Of course the glitch in the diabolical plan of mine is that Americans can’t invest. It sucks, but your government seems to think people are too silly to make good decisions.
Anyways, i’m always around on twitter @gosutrading if you wish to talk about things like this.
Stay well everyone!