The Forex market is the world's biggest commercial market, and most of the market participants are Central banks and Financial Institutions. Therefore based on the retail perspective, trading is not suitable for all traders as every person does not have the quality to follow influential trading psychology. Therefore, people seek other people who can trade for them; the fund manager's concept came in this way.
The Management Service created a bridge between retail trading and institutional trading. On the other hand, being a fund manager is a way to make money e more than that a trader can do with his fund.
Before proceeding further about the fund manager, let's look for the purpose of being a fund manager.
What is the Hedge Fund?
A hedge fund is a company or Institute where people invest their money to trade in the financial market. The financial market is enormous, where the retail trader does not have the effort to make an investment that can provide a continuous profit. Therefore fund management is a process to accumulate other people's funds and create a cumulative investment that can provide continuous growth.
The overall hedge fund is a way to make money and grow together.
Quality of A Fund Manager
As a fund manager, people manage other people's investments where he requires accountability and professionalism to make sure a continuous profit of the trading account. Therefore a fund manager needs to be a certified trader.
What is the certified trader?
A certified trader is a process to be chartered in the forex trading. However, the more a fund manager needs to follow some rules besides being a profitable trader.
With your account, you can trade in the forex market, and you can make money. In that case, no one will ask you how much profit you are making and how long it will take to achieve the targeted margin.
On the other hand, as a fund manager, you are trading with other people's funds to be accountable for them. Therefore when you take a trading decision, you cannot take any additional trades.
Profitability is another critical factor in being a fund manager. With your path, you can be your Boss; it would not be a problem if there is a consecutive loss for two or three months. However, when you are trading with other people's deposits, you have to make sure that you are focusing on a consistent profit, and the margin of your profit is enough to encourage them to keep the investment with you.
The forex market is getting complicated by day due to the introduction of expert advisors and artificial intelligence trading. Therefore a fund manager must keep the trade investors profitable more than an expert advisor or artificial intelligence offering.
Risk management is a process to utilize the fund that cannot affect the balance in the long run. As a fund manager, you cannot take more than 10% to 15% of the total capital. Instead, you should make sure that you are not taking more than a 2% risk part rate.
Another critical risk management tool is trade management. As we know, the forex market is uncertain; there might be an unfavorable condition anytime; therefore, you should manage your trade as soon as it moves to a satisfactory level.
A Career as a Fund Manager
There is a considerable demand for fund managers in the Forex trading industry if you can provide a consistent profit. The people with a strong portfolio of 6 months or one year can attract other investors to invest in him.
This is a proven method that most of the fund managers are doing. There are several methods to show your trading skill in a graphical form. In the MetaTrader 4 and MetaTrader 5 trading platform, there is an integrated feature in mql4.com in our traders who can find other traders who are offering to manage their trips. In this website, you can offer investors to invest in you with an integrated trading portfolio.
Another name portfolio sharing site is that trading view. Through this platform, you can show your trading performance that will automatically calculate based on your trades and will show your draw down profit percentage and overall growth of the account.
Most of the investors seek high returns with low risk. Therefore if you can make a profit with minimum risk and consistent growth, it would not be hard for you to attract investors.
Fund management is an integrated part of the Forex trader that encourages investors from the non-trading platform to get involved in trading. Furthermore, traders can attract other traders through this system skill by showing two or three times profit that they would do with their own money.
However, whether you be a fund manager or individual trader, you should make sure that you are not taking over a 2% risk per trade. Furthermore, trade management and risk management is a valuable tool that makes profitable traders separate from losers.