Forex, Stocks and Commodities Fund/Portfolio Management Proposal for Investors/Financial Institutions.

1. A
PROPOSAL
ON
FUNDS/PORTFOLIO MANAGEMENT
IN
FOREX AND COMMODITIES MARKET
FOR
INDIVIDUALS/FINANCIAL
INSTITUTIONS
WRITTEN BY
OBASEKI O.
PHONE NO: +234-8056055812
E-Mail: fxextract@yahoo.com
©November, 2012

2. Disclaimer
General/Risk
Foreign exchange trading and investment in derivatives can be very speculative and may result
in losses as well as profits. Foreign exchange and derivatives trading is not suitable for many
members of the public and only risk capital should be applied. The proposal does not take into
account special investment goals, the financial situation or specific requirements of
individual/Financial Institution. You should carefully consider your financial situation and
consult your financial advisors as to the suitability of your situation prior to making any
investment or entering into any transactions.
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3. FOREX
The Foreign Exchange Market – more commonly known as FOREX is a global market for
trading currencies. It handles a huge volume of transactions 24 hours a day, 5 days a week. Daily
exchanges average approximately $2 trillion (US dollars). The Foreign Exchange Market was
established in the early 1970s with the abolishment of fixed currency exchanges under President
Nixon. Currencies became valued at 'floating' rates determined by supply and demand. The
FOREX is made up of about 5,000 trading institutions such as international banks, central
government banks (such as the US Federal Reserve), and commercial companies and brokers for
all types of foreign currency exchange. There is no centralized location for the FOREX – major
trading centres are located in New York, Tokyo, London, Hong Kong, Singapore, Paris, and
Frankfurt, and all trading is by telephone or over the Internet. Businesses use the market to allow
them to buy and sell products in foreign countries. However, most of the activity on the FOREX
is from currency traders who use it to generate profits from small movements in the market.
There are many advantages of trading in FOREX.
● Liquidity - Because of the size of the Foreign Exchange Market, investments are
extremely liquid. International banks are continuously providing bid and ask offers and
the high number of transactions each day means there is always a buyer or a seller for
any currency.
● Accessibility – The market is open 24 hours a day, 5 days a week. The market opens
Monday morning Australian time and closes Friday afternoon New York time. Trades
can be done on the Internet from your home or office.
● Open Market – Currency fluctuations are usually caused by changes in national
economies. News about these changes is accessible to everyone at the same time – there
can be no 'insider trading' in FOREX.
FOREX is the largest financial market in the world; it handles transaction worth around $2
trillion every day. The huge volume of FOREX means that it is one of the most liquid markets in
the world. There is always a buyer and seller for any type of currency because the world
economy relies on the movement of goods from country to country.
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4. The FOREX is not located in any one location. Trading markets are located world-wide and
because of difference in time-zones trades can be made 24 hours a day, 5 days a week. Trading
begins in Sydney, Australia on Monday morning (Sunday afternoon New York time) and
continues nonstop until Friday afternoon New York time.
Risks of FOREX Trading
Despite the claims you may see on some Forex web sites, Forex is not risk-free. You are trading
with large sum of money and there is always a possibility that trades will go against you. There
are several trading tools, however, that can minimize your risk, and with caution, and above all
education, the FOREX trader can learn how to trade profitably while minimizing losses.
FOREX trading can be risky, but there are ways to limit risk and financial exposure. Every
FOREX trader should have a trading strategy, knowing when to enter and exit the market and
what kind of movements to expect. Developing strategies requires education, the key to limiting
FOREX risk. At all times follow the basic rule: Do not place money in the FOREX that you
cannot afford to lose. I can't overemphasize this enough; if you can't afford to lose your money
then FOREX trading is not for you. Every FOREX trader needs to know at least the basics about
technical analysis and how to read financial charts.
Risks
As there is increased profit potential, there is also increased loss potential. If you are not careful,
your entire margin account could quickly be wiped out. If your margin account is 1% and the
currency moves just one cent against you, you lose $1000. For this reason I do not recommend a
margin accounts that give you more than 100 times your initial deposit (some give up to 400
times) because of the unnecessarily high risk of large scale loss. FOREX trading, however, has
several methods to limit loss. Stop loss orders automatically close your position if the value of
the currency crosses a pre-determined point. Stop loss orders allow you to limit your losses to a
specified amount while still allowing potential profit taking.
An often overlooked risk is the possibility that your broker may close your position if your
potential losses approach the balance of your margin account. You may be riding out a down
trend with the expectations of a market reversal, but unless you replenish your margin account
you may find your position has been closed. If this happens, you lose your entire margin.
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5. ABOUT ME
I am a Fund Manager and the writer of Kobasfx Forex Strategy on the internet and I am willing
to offer services to individuals or corporate investors worldwide. I am an experienced trader,
financial analyst, and account manager. My investment philosophy is based on preservation of
investor’s capital and a high level of returns on client’s investment. I provide a secured, safe and
100% guaranteed investment environment to my client’s capital. With a very secured trading
system that I developed over the period of 7 years of trading, which promised to give me the best
time of investment/trading with no fear. Therefore, I am different from other Traders or Fund
Managers because I am very serious about my services and customer satisfaction.
I apply different method of trading both technical and fundamental to generate profit in foreign
exchange market. Also, stay out of the day to day gyration of the market to focus on the right
trend and guide against any market risk. My goal and ambition is to provide client with
significant returns on their investment. I will strive to establish one on one and long-time
working partnership with my client. In doing so, I develop trust and co-operation necessary for
creating true and lasting wealth for my client.
Why you need to do business with ME?
a) I maintain systems to manage investor fund responsibly with capital preservation as my
utmost priority.
b) Set clear targets for continuous improvement, and monitor these targets to ensure that they are
met.
c) I establish and enable Fund Manager and client accountability and transparency for the trading
performance
Mission
I aim to achieve significant return on clients’ funds in excess of 50% - 100% per annum or even
more in order to develop trust and co-operation necessary for creating wealth, providing a wide
range of financial and investment advisory/consultancy support services to my esteemed clients.
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6. Values
I conduct my business in a highly ethical manner and have the following values as my guide:
Accessibility, Mutual Respect, Focus, Excellence, Professionalism and Partnership.
INVESTMENT SERVICES
The world of currency speculation is so large and allows anybody who meets the minimum
criteria to participate. Masses of untrained, poorly trained and ill informed amateurs participate
in it and guess what...... they lost all their money! This is why a lot of people believe currency
market is RISKY and unsafe…they are right. Currency speculation is risky for amateurs but
provides a large and regular stream of income for Experts.
I offer Investment Management Service plan for Individuals or Financial Institutions:
This plan is targeted at investors who seek returns and maintain liquidity at the same time. Funds
are mostly traded on the Foreign Exchange and Commodities Market using my trading system.
Minimum Investment: $10,000(For Private Investor) or $50,000(For Financial Institution)
Plan Duration: 6 - 12 months
Proposed Return on Investment or Total Net Profit: 50% - 100% or more
Fund Manager Charges: 30% of the Total Net Profit only (but negotiable)
Table below: Showing the expected returns on investment after 6 months of trading at a
Proposed Return on Investment of 50%.
Invested Risked Minimum Proposed Account Manager Total
Amount or Amount of Balance Return on Balance Charges Balance
Deposit the After Investment (AB) (MC) after
(IA) Investment Trading (PRI) (IA + PRI) (30% of PRI) Charges
($) (RAI) (IA – RAI) 50% of IA ($) ($) (AB – MC)
(20% of IA) ($) ($) Negotiable ($)
($)
10,000 2,000 8,000 5,000 15,000 1,500 13,500
50,000 10,000 40,000 25,000 75,000 7,500 67,500
100,000 20,000 80,000 50,000 150,000 15,000 135,000
200,000 40,000 160,000 100,000 300,000 30,000 270,000
500,000 100,000 400,000 250,000 750,000 75,000 675,000
1,000,000 200,000 800,000 500,000 1,500,000 150,000 1,350,000
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7. How I Manage Your Account
A managed Forex account is about freedom and flexibility. This type of account is meant for
people on the go who simply don’t have the time to monitor the market all day. Ideally, a
managed account works your money hard for the best return. You should feel comfortable with
your Fund Manager – this is the person, and company, on your side – think of them as your
personal marketplace expert. A managed account puts capital management in the hands of
professionals who have extensive experience in the currency markets.
The Fund manager will only take positions for your account. The account remains in your name
at all times and you have the ability to withdraw all or part of your funds at any point in time.
Therefore, access to your funds is never restricted by a pre-defined notice period. Access to your
funds is made possible by simply authorising an electronic payment from the trading account to
the receiving account of your choice.
Featured Benefit of Managed Accounts
• Managed Account clients open and fund their own accounts directly with the broker.
• Funds are not commingled with any other funds because the account is in the investor's
name.
• 100% transparent, funds stay under client's control at all times, Fund Manager has no
access to client funds.
• Funds are always deposited and withdrawn directly by the investor.
• Liquidity of assets - accounts can be closed at any time and funds dispersed by the broker
once all open positions are closed.
Note: Closing or taking a substantial amount out of your account without notifying the
Funds Manager will affect your earning performance, or potentially disrupt a trade in
progress.
• The investor has read-only access to the managed account at any given time, which
enables him to track the account equity and activity 24/7.
• Clients can access broker status reports at any time.
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8. • Funds Manager cannot withdraw money from the account.
• All accounts are actively managed and monitored continuously while trades are in
progress.
• Substantial capital growth
• Maximum Drawdown: up to client to choose from 20 - 30% at the beginning of trading.
• No upfront fees, only net profit share payable as a percentage of capital growth (30% but
negotiable).
Detailed Statement of a Client’s Account recently Managed by me is shown below:
Trading condition agreed between me and my client for the trading account below are:
Invested Amount (IA): £500
Risked Amount of the Invested Amount (RAI): 20% of Invested Amount (20% of £500 =
£100).
Minimum Balance After Trading (IA – RAI): £500 – £100 = £400 (Least account balance
after trading in Loss)
Plan Duration: 6 months
Proposed Return on Investment or Total Net Profit (PRI): 50% - 100% or more (at least
£250).
Fund Manager Charges (MC): 30% PRI (30% of at least £250 = minimum of £75 if
PRI is achieved).
After 5 months of trading, account balance reached £751.43. Therefore, we decided to withdraw
the Total Net Profit (£751.43 – £500 = £251.43), the Fund Manager Charges (30% of £251.43
= £75.43) was paid and the Investor received the sum of (£251.43 – £75.43 = £176).
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12. As you can see on the account statement above, the account was funded with £500 on May 21,
2012. We agreed that the account equity must not fall below £400 (by deducting 20% of the
Invested amount of £500), after trading on the account, it increased to £751.43 (over 50% return
on Investment) within a period of five months of trading. I never traded with more than 2% (0.01
Lot size) of the invested amount on a position, a tight stop loss is in place to control losses in
case the market goes against me. You have also noticed the discipline part of my trading system
after going through the statement of the account; you would have realized that I did exactly what
I promised my client at the commencement of the business.
If you are willing to do business with me or for more Enquiries, you can contact:
Name: Obaseki O.
Tel: +234 – 8056055812
e-Mail: fxextract@yahoo.com
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