Quote from Brandonf:
That only applies to friends, family and such, and you can not be compensated.
And so it is. But define "friend." And then define compensation is the context of an oral agreement.
An internet poster can be deemed a friend especially if personal information was exchanged such a phone number. And at the same time, an oral agreement for compensation when acted upon can be construed as a "gift" for service well done. It's not as if said "manager" (and I use the term lightly) was asking for a fee for service irrespective of profit. The fee arragement was for 25% of profits which the investor would have to at their discretion, forward to the "manager." Since the "manager" only had trading permission for the account, the "manager" could not withdraw his fee at his discretion but had to rely on the client to act upon the agreement to do so. In other words, it can be seen as "if you like what I've done for you, a donation of around 25% of gain would be nice."
I'm not defending the bad man... "manager." I just think the calls to reimburse the client 100% and alert law enforcement are ridiculous. How is it that the client is not to be blamed in this instance? How is it that the client didn't know that there was serious risk involved in spot forex?
Was there negligence on the part of the manager? Sure, from my point of view. His trading style is reckless. But that's a relative matter. Some in congress believe that hedge funds are reckless. And a few have blown up. One just recently. Did those clients get their money back from the hedge fund manager's bad trading? Nope.
The client failed to take some basic steps to make him or herself aware of the potential risks involved. The client overleveraged himself by giving 1/2 year's salary to a person with no verifiable or auditable track record.
The client should bear, at a minimum, 50% of the loss for not exercising common sense and due diligence. The manager the other half, morally speaking, simply for failing to properly communicate with the client about his tolerance for risk, his financial status, and suitability as a client in relation to his "seat of the pants" trading style.
Calling the state attorney's office is not going to get far. Especially if this thread is brought up as evidence. That's something this person (investor) should have done instead of creating this thread and admitting to certain things.
Even so, this idea of him(the investor) being made whole exonerates every person who was greedy for gain and lost in the process. There's this ever growing climate where people are not taking responsibility for their own actions. That has to stop.
No one wants to make you rich. No one is that altruistic. Therefore it is incumbent upon you (investors) to exercise due diligence before handing over or allowing your funds to be managed. Ask yourself, "What in it for them?"
25% of $12k certainly isn't enough. If a person could take that $12k and ratchet it up to $1mil, they certainly don't need your $12k. Nor would they be inclined to grow your $12k for you which is a time consuming process.
Anyway, that's it about that.
Sum of Facts:
1. The manager sucks arse.
2. The investor was naive.
3. We're all a laughable bunch slowing down at the accident scene.
4. Lessons were learned the hard way.
5. Some will have a drink or puff some weed over the weekend.
