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Basic Composition

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Making Good Choices

Investors should have an alternative choice as to where such placements should be made, especially when it comes to dramatic downturns in the market like the recent financial crisis where investors had no such choice but to follow, see and wait for the drawdown value on their stock portfolio managed by the company managers deciding for themselves as to where the placements would be at.

Seldom do they refer their decisions because most client / investors are asked to sign discretionary accounts when an account is opened because of the timely manner where a trade has to be executed is more often the reason why they must sign a waiver for such orders when the clients are not available or could not be reached.            

This program had considered that during such meltdowns and crisis; when investors should be able to make certain choices and decisions as to where their next alternative strategy will be made. Having the control, the strategy, accessibility to the open market and the secondary markets can make a big factor and trading difference in looking at the bottom line of any trade. The very basic composition on any account openings are such that the primary objective are pre-determined and discussed. Some of the components are as follows:

  1.  Amount of investment funds available for a certain time period
  2.  Placement and distribution of funds as to net exposure from conservative to highly aggressive investment instruments. Choice of placements within the scope of the account agreement and other specific instructions made by the clients.
  3. Attainable objectives and parameters for interest, percentage of investment return and manageable draw downs or loss on the account and any single and multiple transactions
  4.  Safeguards, restrictions, transaction, management fees and other related expenses covered while account is under company’s depository holding.

The details as to what necessary steps and procedures must be kept in place as due diligence should always be observed. The composition stated above only reflects the basic guide and a complete process prior to trading specially the foreign exchange market are outlined in part through this website and on the Megatrade101 e-book which defines all the issues relating to this.


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