Well I believed it would take one mistake to break us, but I was wrong, it took eight. After no less than eight accounts put in withdrawal requests over night, we were forced to close our buy hedge earlier this morning due to a margin limitations which left us at the mercy of the market. We have been able to hedge out of situations like this since on no less than four occasions in the past but doing it a fifth time was impossible due to declining free margins. Then unfortunately, as usual, UK data leaked early this afternoon and that spelled the end of it all. It seems UK data leaks will not stop. They have been happening for a year now and its likely to continue as nobody seems to care to investigate.
A few things to clear up:
- This was purely my own fault for firstly making the trades in the first place, assuming that nobody would withdraw and that I could hedge out of it as we always do when it goes wrong.
- The platform is NOT at fault and there has not been any major wrong doing on their behalf. We were prevented from hedging due to withdrawals of some of our users, not because of being denied access, like on another certain platform.
- I take hapniess in only one point of this failure and that is that the people who withdrew will get NOTHING. Frankly, I think their selfish actions warrant this.
- I know who the withdrawers were. I did not even have to look it up, but it was apparent when a few people who were complimenting just days earlier starting maliciously jeering when they found out withdrawals would not be processed at the amounts they tried to take. Their behavior says a lot about their character and integrity. With such people in the community, we would have failed eventually regardless of how far we got. When the cable retreats to 1.40ish levels, over the next few weeks as Brexit looms, the people who withdrew and left us in this situation will have more regrets than I do, when they realized they would have been sitting on top of $500k balance had this happened. After all their actions show they are more selfish and greedy than the rest of us.
That safely to say is the end of trading for me in a social setting. I have to accept after what happened that my style of high risk trading is not suitable for it since:
- I can not rely on everyone who says they are commited to be commited and it only takes a few people to ruin it for the vast majority.
- Although people are saying they know the risks and are happy to accept them, many people are trading with money they can not afford to lose.
- The influence and comments of others do effect my judgement, as much as I try to say I only factor in my opinion, it is simply not true.
- I have proven this time round to myself and everyone, entirely at my own fault that I am neither capable enough, skilled enough or disciplined enough to manage a group account.
- It would be irresponsible to cause anymore losses.
With that said I do wish to appologise to everyone for this failure. Afterall I was the captain when we hit the iceberg. I just wish a few people didnt scramble with all the lifeboats leaving the rest of us marooned.
I also wish to say that I immensly enjoyed talking to the vast majority of you and am grateful for all the support and kind wishes in both good times and bad. We had a heck of a ride together, making, losing and remaking hundreds of thousands of dollars together and most of you did stay there till the very end, knowing that we were in all likelihood doomed. I genuinely did try my hardest everyday, everyhour but in the end I could not fight the market and betrayal from small numbers of the PAMM copiers. I tried so hard but it just was not good enough. Thats my failure here.
I would also like to thank HF and my account manager there Bassel for all his help in solving our earlier issues and constant support. They are a good company and none of this is their fault. If you want to continue trading, I suggest you stay with them, I believe you are in good hands.
Whats next for me is that I will be taking some time off to clear my head and emotionally recover from what has happened and then trading again by myself. I just spent a massive amount (for me at this time) on a Bloomberg subscription a few days ago and I want to make use of it and try to at least recover some of my losses from this year. I will use a platform regulated somewhere trustworthy like the UK, North or West Europe as I feel a new start would be best for me. I will try to continue to update the blog a few times a week with what I am doing and what I think is going on, as its therapeutic for me and I actually enjoy communicating with most of you. I believe the good wishes and karma will help me succeed or at least encourage me to keep doing my best. Once again thanks to the vast majority for believing in me and sticking by me, words can not being to describe how terrible I feel about having let us all down.