The ideal investor – who is he? The interview with a successful trader.
Today our guest is Alexander Toporishchev from Arkhangelsk, the manager of PAMM-strategy «Tisheedesh’, bol’shebudet». Alexander’s strategy has the highest level of profitability in the Rating of managed accounts.
Hello, Alexander! Thank you for agreeing to talk to us. Please, tell us about yourself a little bit. How long have you been on Forex market and what did motivate you to become a trader?
I’m 37 years old. I was born in Stavropol My father is a military man, that’s why our family was moving to different regions of Russia a lot. In 2000 I’ve graduated from the Institute of Economics, Finance and Business of Arkhangelsk State university. My entire career concerned private business. My first introduction to Forex was 4 years ago. The motivation of that was the change of the character of my job. The business was getting success. I’ve got some available money. So I transferred from field to office workers. Now I live in Arkhangelsk. Just recently I’ve opened an office to make my trading more comfortable and to have a place to meet my clients.
AForex started the PAMM-service not a long time ago. Could you tell us, what happened to your trading during this period?
The most important achievement for me is the fact that my strategy «Tisheedesh’, bol’shebudet» is in the top of the Rating of managed accounts in AForex. This is the result of more than 4 years of successful trading.
Please, tell us about your trading system, not mentioning the details.
There is nothing complicated in my trading system. The main thing, I’m relying on, is support and resistance levels, Fibonacci ruler, pin bars, extreme trade of day-week-month, multicurrency and averaging. And the most important thing is the absence of greed in my trading. And, of course, it is very important to follow the money-management and risk-management rules.
Should there be limits on the amount of capital and what it should be?
I think the Investor and the Manager should have the same conditions for the beginning. That’s why I like your company. 300$ is min amount for the Investors as well as for the Managers.
How do you think, what can we change or add to PAMM-service at AForex?
I think, you could revise a little the statistics of strategy and add some new topics, so the Investors can evaluate the profitability of the strategy easier. Also I would cancel the limit for max amount of investment to the strategy. Now you can’t set a min amount of the investment less than Manager’s own capital.
So, if the Investor joins my strategy with less than 30% of my own capital, it won’t influence on the current account balance, but in the same time it will reduce my profit.
The thing is I got the impression that many Investors don’t want to read offers’ texts. In my offer it is written clearly, that equity drawdown can reach 60%. But the Investors set limit for loss of 10-15% and thus they get out with stop-out, leaving me with increased volumes. It means I have to correct the volume urgently by myself which is not always possible. And it makes my trading uncomfortable.
Who is an ideal Investor in your opinion?
In my opinion it’s a man, who approaches his own investment carefully, pays attention on other investors’ comments, assesses the risks right. And the most important thing is that he is the one who communicates with PAMM-managers before the investing or at least reads Manager’s offer.
How do you think, which criteria should the Investors follow while choosing the Managers?
The Investor should choose the Manager based on his investing goals and the expectations of profit. He should remember, as high is profit as high is risk. This is the key rule of financial system. That’s why, I recommend the Investors to pay attention not only on strategy profitability indicators but also on amount of credit leverage (less leverage means less risks) and amount of balance drawdown and equity (less is better). And, of course, the strategy has to have a sufficient period of trading (more is better) preferably not less than 3 months.
People often think that investing is a simple process: deposit money and get profit. What do you think, should the Investor follow any strategies in PAMM-service?
You’re right – it’s a very common misconception among the Investors. The main Investor’s rule is to diversify his portfolio, which means to invest several Managers’ strategies. I advise the Investors to follow folk wisdom and not to put all eggs in one basket (smiles).
Could you tell us about your plans for the future?
My immediate plans are to expand my activities on the Forex market. I see great prospects for the development of this market in Russia. When the state regulation of Forex market appears in Russia, people will trust more in this market and at the same time the amount of traders and investors will increase. Besides, I’m planning to expand my professional activities and begin to teach at the Institute of Economics, Finance and Business of Arkhangelsk State Technical university, where I had studied. And of course, I’m planning to expand the amount of investment tools which I’m using in work.
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