Investing in managed accounts, from zero · Lesson 4 of 4
Red flags and the right amount to invest
7 min
Five red flags
- A fixed or guaranteed return: in leveraged markets nobody can guarantee a fixed monthly profit.
- A request to pay into a personal card: the money should go to your own account with the broker, not to the manager's card or someone they know.
- Only screenshots, no data: an image is easy to fake. Ask for a verified record, or at least the investor password.
- Pressure to hurry: "places only until tonight" is a sales technique, not an opportunity.
- Hidden drawdowns: a manager who does not show their losing months probably has something to hide.
The full list is in red flags.
How much should I invest?
Two simple rules:
- Only hand over money whose complete loss would not disrupt your daily life.
- Spread your capital over more than one manager or method, and start small. If the account behaves as expected for a few months, increase the amount.
Write your exit plan first
Before you start, write down when you will leave: for example, if the drawdown passes twenty percent, or if the manager changes their trading style without telling you. Deciding to exit in the middle of a loss is hard; deciding in advance is easier. The withdrawal and exit guide explains the steps.
End of the course
You can now take the course's short quiz. With a passing score, you receive a certificate of completion with a code anyone can check.
Enrol in the course to save your progress and take the quiz.
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