PAMM, in essence, a great alternative to working in the real world. PAMM-investment allows the benefit of the experience and knowledge of the trader, with almost little effort on their part. Only before the first investment you should take care of his self-education on the issue. Only if you do not want to be one of those losers, screaming about how they cunningly deceived. Of course, it is better to admit blame someone other than himself.
For you, perhaps, no longer a secret that the PAMM-account relies on a certain reward shareholders. However, you may not know that your reward is directly proportional to the control depends on the amount of your contribution. That is, the smaller your contribution, the greater the percentage of your income you will have to pay the trader.
Moreover, the income earned PAMM distributed among the shareholders according to the ratio of their contributions made. An example. Assume control contribution - $ 2,000, the contribution of the 1st unit holder - $ 1000, 2nd shareholder - $ 900, and your contribution - $ 100. Total - 4000 $. That is, the percentage of your contribution from all the PAMM - 2.5%.
So, this month you the whole company made a profit of 50%. It turns out that the PAMM-account now equals $ 6000. How much income do you have? It depends on the percentage of your contribution. And you have it - 2.5%. So consider. It turns out that of the $ 2000 of income is your net income will be only $ 50.
But no, and this amount is not yet fully yours. From it you still have to pay the manager his salary. And if your contribution most insignificant, hence the percentage of income you will pay him the biggest of the group of shareholders. Probably, it will be 80%. And do not forget to commission the system (yes, it will give you and forget it) - is approx. 10%. You have only 10% of your share. Now, your net profit is actually $ 5.
This would not have happened if you would have invested a little more than the average amount of the deposit in the group. First, you would have had a large share in total income. Second, you would pay a much smaller percentage of the manager for his efforts.
Moreover, to the smallest shareholders include one more injustice. When drawdown PAMM at 10%, you will lose your $ 100 from the same 10%. That is, there is no equity division of responsibility depending on the amount of each contribution.
It turns out that by contributing the least, you will:
1. A profit less than all;
2. Risk along with all the others.
Therefore, if you have decided to become a shareholder still PAMM not rush with the decision. It is better to be patient, to accumulate a large amount and get most of the profit from the income account.