Sunday, December 14, 2008

What Happen?

Hey, what is happening to our special account?

We have not been performing up to expectation, had done only 3 trades so far for the past 9 trading days with 2 of them having been stopped out. Yeah, small losses, good money management, but, bottom line is we are in the RED! That's unacceptable!

I would consider Robert and myself the Elite Traders in our field of expertise. So, what's the problem? One of the major problem is the lack of focus and not enough effort put in, spending too little time to trade this account. We need to make adjustment.

I have decided to split the account into 2, with Robert handling S$200k and myself S$250k with effect from January 2009. This will ensure individual accountability, performance and freedom. We will continue to consult each other regularly with regards to trading techniques, high probability trades and will be jointly responsible for the overall account.

Read in the newspaper about Bernard Madoff, a former chairman of the Nasdaq Stock Market, accused of US$50 billion fraud despite building a trading powerhouse that had prospered for more than four decades. His hedge funds oversaw some US$17 billion, attracting investors with the promise of high returns with low fees.

One of the funds reported having US$7.3 billion in assets claimed to have paid more than 11 per cent per year through its 15 year track record despite the generally low-yielding investment strategies he described to his clients. He had lost money on his trades and paid investors with money that wasn't there, a "Ponzi Scheme" offering unusually high returns, with early investors paid off with money from later investors.

What a shock, in term of scope and duration, Nick Leeson the rogue trader that bankrupt British Bank, Baring with US$1 Billion losses in derivatives trading would be having the last laugh.

3 comments:

Michael said...

Hi Patrick!

Year end. Time to relax and spend some time with the family. Merry Christmas and happy new Year!

yours,

www.forexzillion.com

Michael said...
This comment has been removed by the author.
Fat88Trader said...

Hi Michael,

Sorry for missing your comments and well wishes.

I wish you and family a prosperous 2009.