Good day to everyone, my name is Michael and am from Durban, South Africa. I want to cur straight to the chase and not waste anyone’s time with long explanations about forex trading in general. I am 51 years old and have been active in the forex market for 25 years. I know first hand how hard it is to make money trading forex, not because of the market itself but rather the lack of capital many forex traders start with. Even if you make 10% per month, every month, if you only have $1,000 in your account that would mean $100 per month in profits.
Some may welcome that type of income which brings me to the next problem. Those who can easily afford to put $1,000 usually live in countries where $100 doesn’t get you very far and those who would love to make $100 per month can’t afford to make a deposit of $1,000. On top of that, earning 10% every month is unrealistic. Professional fund managers often struggle to earn 10% every year which paints an even worse picture. Using our same example, this would mean that $1,000 would earn you $8.33 per month. This is assuming you earn money at all.
I was in the same boat as everyone else. I would like to fast forward in my own story to the point where I created my own trading strategy and recorded my first annual profit. It was in my eight year of trading forex. It was a proud moment, I earned 14% for the year. I started the year with $2,300 and my 14% resulted in a net profit of $322. Those who laugh at it probably never traded forex or are trying to scam others out of their money. I realized that my problem with forex trading was not the strategy, but the lack of capital I had.
I am working a full-time job which covered all my expenses, but it didn’t leave much for making deposits into my trading account. I decided to make some adjustments to my lifestyle, small ones and freed up roughly $200 for deposits into my account. I am earning $2,300 per month from my job and my goal with forex is to match that income. Not because I want to quit my job, but because I want to live a much better life. Knowing that I work cause I want to, and not because I have to makes a big difference to me.
Since I want to replace my total annual salary, I need to earn $27,000 per year through forex. My goal was to increase my 14% annualized gain to a 30% and gave myself a decade to fine-tune, improve and grow. That still meant that I needed a trading account worth $92,000 to accomplish this goal. Through deposits only it would have taken me over 25 years to get there, taking into account that I am earning every year. That’s when I thought about PAMM which stands for percent allocation management module.
I know from experience that a lot of forex traders lack capital and strategy. I developed my strategy over the years at PaxForex and with PAMM, other traders can allocate their capital into a master fund which I manage. I have no access to their money and I don’t want to have it. Whenever I place trades, every trader in my PAMM account will get a portion of that trade based on the percentage they have. I charge 30% of profits earned every year. This helps traders without the time to trade to earn money based on my strategy and it helps me earn more from my strategy by charging a performance fee.
I put a lot of effort into my PAMM account and while the start was very slow, I have now a great business going and am looking to expand. A few weeks before I turned 50, assets in my PAMM account reached $300,000 which was a huge milestone for me. I am averaging 30% annualized profits over the past seven years, so 30% of $300,000 equals $90,000 in profits. Since I charge a 30% performance fee, my annual earnings are $27,000 which now equals the salary I earn from my job. I plan to work another four years before early retirement at which point I will focus entirely on expanding my PAMM business. The next target is $1,000,000 in assets right here at PaxForex which has been a great steward of my money as well as my traders’ money.