Lost half of my years salary in a week!

Hiss and Rattle. What is up my Forex Bro's.

Wow what a thread, this just might rival the chronicles of Hitman if it keeps going. acd all you need now is to fall in love with some girl who will use you, and then you can sit around pining away for your Princess. Hehehehehe

Now acd you sound like a good person, but from reading your posts you have an emotional bugaboo that you need to take care of before you start trading. Seeing words like feel, worry wort, guts, etc, show you are not yet ready to start trading, so first of all start investing, do research on no load mutual funds, find the ones that are perhaps higher risk with a greater reward, that will help you to get used to seeing losses and gains on a statement.

Then get every book by Dr. Alexander Elder, read them and once you have finished, you will be ready to read them again, after the second read, go through and make a list of personality traits that you have that would be detrimental to your trading, and then work on these outside the trading arena, its kind of like getting into shape before a sports contest.

It will take time to get these bugaboos out of your system but once you do it will make you a better trader and person. Dr. Elder states that a person should never trade if they have unresolved emotional issues, and I was a poster child for this when I started trading years ago. Also the money you lost is gone, you will never see it again, move on. Wasting time "for the principle" can at times be a distraction. If you find yourself obsessing about it then you have to at least report it to the authorities so that you can "feel' better. Remember feelings have their place but generally they are a hindrance in trading.

Then learn about technical trading, fundamental trading, and also the forex market in general, go through this site for advice on brokers, trading etc. Then open a sim account with OANDA and see how you do, this is the fun part. Once you get a clear understanding of the market you are trading you will be ready to live trade.

Don't worry this is a life lesson, better to have learned it now then when you are 50. It is my observation that you will be ok, you just need to put effort into learning how to do this and give yourself time.

The Ever Encouraging VIPER
 
I see the forum were acdspit00 and MP6140 started this great "partnership" has no mention of this mess at all. Looks like business as usual over there.
 
Well Folks...welcome to the Wild West of Forex. You will find that there is no regulation on the issue in this thread in the USA.

Research all you want. May I remind you of three facts:
  • No Futures were traded.
  • The 25% would need to be invoiced as the LPOA (Limited Power of Attorney) only allowed the trader to trade the account.
  • The trader was not offering investment advice or portfolio allocation decisions or retirement planning

The NFA would be the regulating body for the CFTC and there is a "work in Progress" beginning last December for the regulation of the "Global Cash Market" (increased powers granted for the regulation of the Cash Forex market from the USA legislation). Being that it is Global you can understand that there is not "reciprocating agreements" or "Treaties" if you may between the countries YET...(however Japan is on board, along with several other countries)

Michael B.
 
just want to say i am not Japanese (saw someone mention that i was :0, American citizen stationed in Japan on a Naval Base as an Hospital Corpsman... besides of wishing to receive like 50% of what was lost (which seems very unlikely due to several attempts of asking from you guys..which I am really really really appreciate...) i am just waiting to see what my favorite broker tells me :/ (the idea being how much money they get maybe they'd spare me..i know its a longshot) or do they even respond to emails?
 
Quote from acdspit00:

just want to say i am not Japanese (saw someone mention that i was :0, American citizen stationed in Japan on a Naval Base as an Hospital Corpsman... besides of wishing to receive like 50% of what was lost (which seems very unlikely due to several attempts of asking from you guys..which I am really really really appreciate...) i am just waiting to see what my favorite broker tells me :/ (the idea being how much money they get maybe they'd spare me..i know its a longshot) or do they even respond to emails?
More...

buddy, the broker won't do a thing for you. Mike Parker is the one who needs to make you whole on this. You really need to stop believing him over the rest of us - we're not emotionally or financially involved, while he is, and keeps layering you with feel good phrases.

He blew out the account, and he needs to make you whole again.

The end.
 
Ha! Thought you were rid of me.

mp, I find your posts' to be professionally offensive in nature.

The offence is taken by the fact that you are shifting the blame from yourself to the client.

1. You evidently are saying that with a little more money your client would have had an opportunity to have made the loss back.

2. That there were some mysterious forces at work closing trades and so by implication, the clients losses were still not your fault.

First of all it is a practice of some mutual fund's, money market accounts etc, to waive management fees when the fund under performs. You have lost most of this clients money, and say tough, he knew what was at risk. This is OK and possibly legal if the trades were taken, but then you have the temerity to try to defend yourself, without showing that you even care about this client. Baaaaaaad business son.

Second, the minute that you saw there was some whacky things going on with the trades in one of your accounts you should have called your broker and had the block allocation on this account changed to 0%, this would have segregated this account from your trading, not very professional to let it go on. Also the fact that your Broker could not give you an answer in an hour or so shows the competence level of your broker.

Third, if you were trading his account with his broker, that is an even bigger mistake. That means you have no leverage to resolve problems

Fourth, in looking at the young man's p/l spreadsheet, and if it is accurate, you were trading 400k on a 10k account, this was not just bad money management, it was, in my opinion incompetent. What is your stop at this leverage. Think about it, a 50 pip stop would be 2k, that would wipe out your initial gain on the first loss.
Then, if you had a slump you would only get 5 more trades till the account was blown up.

It is a shame that that this happened to this young person, and its my observation that you have given no viable defense other that saying "I feel bad", but obviously not bad enough to not take the money you do not deserve.

ES you are right, in forex there is no regulation regarding managed accounts. If someone gives you poa to trade their account you could trade mios and nobody but the clients would know what you are doing. That is the short version.

MP this kid deserves some compensation from you, since you decided to post here your reputation is at stake, I hope you sleep well tonight.

The Ever VENOMOUS VIPER
 
Of course I am right...I am a moderator...would I lie or lose peoples money :)

but seriously, something really needs to get done about the Wild West of Forex...When I was a CTA, I actually was thankful for the NFA....could you imagine the circus Futures COULD BE without them!

ES you are right, in forex there is no regulation regarding managed accounts. If someone gives you poa to trade their account you could trade mios and nobody but the clients would know what you are doing. That is the short version.
 
Quote from ElectricSavant:

Of course I am right...I am a moderator...would I lie or lose peoples money :)

but seriously, something really needs to get done about the Wild West of Forex...When I was a CTA, I actually was thankful for the NFA....could you imagine the circus Futures COULD BE without them!

ES you are right, in forex there is no regulation regarding managed accounts. If someone gives you poa to trade their account you could trade mios and nobody but the clients would know what you are doing. That is the short version.
More...

The Investment Advisor's Act of 1940, which is the controlling document for most state and federal regulations, does NOT exclude currencies.
 
try again....refer to the jurisdiction...the CFTC...is the regulating agency...This is not an SEC issue...but ok...armchair regulation prevails here in ET...go ahead...

He is not rendering investment advice....

Believe me I have been through all of this with Mr. Sanchez at the NFA in the oversite committee...If you do not believe me...I can give you his direct phone number privatly if you are a CTA...I speak with him quarterly to check the process of the much needed regulation in Spot Forex. For the other folks reading the NFA phone # is (800) 621-3570. (The NFA is the National Futures Association, which is the regulating arm of the CFTC)

I am not special or privy to anything and all CTA's have access to this...( I have withdrawn my NFA membership as I do not need it as I trade my own money...and even if I traded OPM in Cash Forex, I would not need to be registered at the time of this post in the USA)


Quote from lindq:

The Investment Advisor's Act of 1940, which is the controlling document for most state and federal regulations, does NOT exclude currencies.
More...
 
No wonder the Uk is the centre of the FX Universe!

Although foreign exchange is not a regulated activity the business of margined foreign exchange is deemed to be an investment activity and hence anyone trading on behalf of someone has to be authorised by the FSA.

Nice to see the US has it priorties right - bans internet gambling but allows any idiot to fleece someone out of their life savings because they promise to make them millions!.
 
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