It's crucial to approach PAMM accounts with realistic expectations; consistent high returns are more about luck than skill.
Realistic expectations are crucial in trading; consistency beats luck every time.
They say on the Internet that every fool can easily earn 10-20% profit per month on PAMM accounts. Let's say right away that this is not the case. More precisely, it is really possible to make a profit of 10-20% or even 100-200% per month if you are lucky, but it is almost impossible to earn so much consistently every month for at least a year.
In practice, earning 50-70% per annum on PAMM accounts is a good result. More is just a matter of luck, most people can't earn that much. Look at the profit of PAMM accounts in our rating, it is calculated based on real data.
Rating of PAMM accounts by investor profits
At the same time, the profit does not always correspond to the profitability of PAMM accounts. It happens that investors lose money even on profitable PAMM accounts. This happens when you don't know how to make money on PAMM accounts, when to log in, what to expect, and when to withdraw money.
Resume. The profit of PAMM accounts is indeed such that we can talk about an increase in funds. If you're lucky, you can earn 100% in a month on PAMM accounts. And if you learn how to invest, you can earn 30-50% per annum in foreign currency. No bank will offer such profitability. But the risks are also much higher than bank ones. There is no guarantee of a return on investment on PAMM accounts, and if you want to make money, you need to learn how to assess the risks when investing.
The profitability of different PAMM accounts is noticeably different. There are accounts that have shown 100%-200% profitability in a few months, and there are those that have earned the same amount in a couple of years. It's all about the aggressiveness of trading and the leverage used.
There are aggressive PAMM accounts that trade with a lot of leverage and risk per trade. On such PAMM accounts, you can earn 100% or more in a few months if you get a good period. But the risks, of course, are higher. In the worst case, you can lose the entire amount invested.
It's the other way around here. Conservative PAMM accounts trade carefully, with low leverage and short stops. They are focused on long-term investment, 30-40% per annum and drawdowns of no more than 30-50%, i.e. you can limit the loss to half or a third of the deposit.
The PAMM account manager takes a commission for investment management in the form of a percentage of investors' profits. The commission can reach 50% of the profit, so it must be taken into account when evaluating the profitability of a PAMM account.
