N.B. The names of no organisation have been mentioned in this piece. This piece is published here purely for the curiosity of my reader base and they can interpret it any way they wish to.
It’s a harsh reality trip when you find out that in the scope of things sometimes you’re completely helpless. As many of you are aware it is now the fourth day in which I do not have access to my account. Some of you may know out of desperation and frustration, I decided to seek legal advice on the matter after being ignored for two days and only getting contacted after it was too late to rectify the situation. After an email asking me if I want to deposit more as the account close to being stopped and a comment here and on Twitter telling me to login and file a ticket (the issue being that I couldn’t login in the first place!), I decided that I wasn’t going to speak to anyone at a certain network until after seeking legal counsel. At this point there was nothing to be gained from speaking to them. The damage had already been done and for all I know they were going to try to trap me into saying something or agreeing to something that would free them from all responsibility.
So how did the meeting go?
In all honesty the gentleman I saw was very helpful but brutally honest. Firstly they spent some time asking me questions to determine whether I was wasting their time or whether we actually had something to discuss. When they were satisfied, we began to discuss the situation further. Firstly they told me that this is something they see very often with brokers that are regulated in a certain part of the world ( you know exactly which country I mean) which apparently means nothing and is easy to get. He also explained that due to the nature of these organisations, many of them are highly unethical and highly, for want of a better word, shady. In short they are regulated in name only and at the end of the day when their consumers are hurt, there is very little that consumers can do. He stated that in every single instance where he has seen someone try to get results, the brokers immediately deny any responsibility and try to pass the blame to the users. He also informed me that the brokers hire institutions that have expertise in how to drag things out and play with the wording of their conditions to make it look that they are not liable whatsoever and that any attempt to try to get compensation would not only be highly unsuccessful but would also be extremely expensive and take a long time. In short he pointed out the harsh reality that effectively what I did was give my capital to a semi-legitimate entity with shady business practices on the other side of the world and that in short I should never expect to see a penny back.
I was not discouraged by this because I felt that it cannot be that simply open and shut. So I explained more carefully to him what had happened. That in my opinion the people holding my money had a duty of care to me that I should be allowed to access and manage that money and that duty was breached and harm was caused by that breach. I also explained that even if we take the trading side and put it out of the picture, that these people were holding thousands of dollars of my money that they were not allowing me access to and in my opinion surely that that amounts to theft and there are laws against theft in the civilized world. He was intrigued so he asked me what I think happened and I explained to him, just what I’ve explained to all of you about what I think occurred. He suggested that while that is possible, it would be more likely that this issue was due to technical errors and that the company would not want to admit these technical errors. Instead it would be far easier for them to quite simply pass the blame onto myself and get off their mistake completely free. I can see how this could have happened given their history of errors but I remain convinced that this was targeted, especially following the behavior of this group afterwards.
Now, whether this was a malicious operation or whether it was quite simply technical error, it does not change the fact that the way it was handled was very poor. Ignoring me for two days and then pretending not to hear from me, and not contacting me yet having time to contact everyone else is unacceptable. Then pretending you are unable to reach me after trying and blatantly lying to people about it is also unacceptable. The people reading this blog are not foolish they know how easy I am to reach. They also know that I’m not in a position where I would not care about my money or throw it away. And unfortunately for you, they can also see who is consistent and who was changing their story.
You can go from pretending that there was no login issue to then pretending that you are checking it to then pretending that I have disappeared. Everyone is familiar from previous experiences with your ability to deny when the circumstances or problems arise. You did yourself no favors with your handling of it last time. In addition contacting people after their accounts have crashed and pretending that you have their interests at heart does not convince them. When we were in deep red in December, did you block them for their protection? I wouldn’t even be surprised if many people have received phone calls offering them credits if they deposit more as it is clear that quite frankly all you are interested in is getting these peoples deposits and keeping them for yourselves as long as possible. Oh and closing peoples copies without asking them, also not ethical. But you threw ethics out of the window days ago right? You maybe able to lock me out from posting on a certain site, but here the whole truth can come out. I have nothing to hide. You do.
A bit of a message to anyone who may have any doubts please consider the following:
Is this an excuse?
If you check at the time, I reported my lookout before the crash happened. This can also be confirmed by everyone on Twitter. This was not an excuse. I would not throw away a profitable trade and the ability to save my five figure balance quite simply for drama and attention. If you believe a lie like that, then you really should not be investing money online, the markets will devour you.
We had the exact same positions in the exact same danger in HF as well, if anything more so due to much higher leverage (300X). The difference being that because we were able to access HF, we were able to hedge as intended and over the course of the last few days everybody has seen the results of that.
In addition when I make mistakes, I face them. I have character. I’m not like a certain organisation that only selectively communicates and avoids mentioning its mistakes.
Could the situation have been avoided or changed if I had access?
Absolutely. As explained at the time of my lockout to Markofay and Michele ( both of whom can confirm what I am saying, in fact anyone who read the public comments on Twitter which is about 200+ people can confirm what I’m saying) the simple plan was to close the EURUSD sale which was in profit at the time and represented approximately one quarter of the account equity and use that to hedge by buying the Yen. This is the exact same strategy that we applied on HF in order to reduce our losses from the USDJPY buys (the troubled ones from 120 levels) over 12,000 USD to 2,364. i.e. It worked in limiting the damage. We now have only one usdjpy long from 115, which I have chosen to leave open as I feel we will see this level again sooner rather than later, and if not and things continue to fall, then we will continue to hedge.
N.B. While writing this a 250 spike happened, so thank god we didn’t over sell!
What is next?
I’m not giving up and will be spending the better part of my day off tomorrow talking to the police to see if there’s something that they can do to help. Ironically, when a certain called some of my colleagues with lies, they gave me some excellent witnesses. Note to your people: Never call someone who was recommended by a friend to lie about that friend, it tends to get you called on your BS. Following that there are a few people in Media City they have to write emails to as I’m pretty sure that they would love to hear all about this.
With regards to trading, I don’t even know what situation is a certain platform as many of you know I have not been able to login. I accepted the fact after two days of silence from them while the market tumbled that I will never see my balance there again. In short it has been stolen. Call it what you want, they have withheld my money from me. That is called theft. They are thieves in my book.
On HF we have significantly minimize the damage of our most dangerous exposure which was the yen, everyone’s leading choice during these times of risk aversion in the market. Were as we have minimized a long exposure, I don’t particularly wish to commit to another hedge at this point as I am not entirely confident on what we can expect from governor Yellen. However, I did take comfort in her statement yesterday that if market turmoil continues they may consider a slower path of rate increases. This to me clearly states that the central bank intends to continue increasing rates in contrast to the market which I feel is too quick to write of any rate hikes this year. I am 50:50 on whether anything will happen in March (if Feb posts a strong data for employment and shows inflation growing a little (helped by this weaker dollar), they might actually do it and certainly will fire again before the end of the year). I think the ECB will ease more in March and expect more cuts from the BOJ.
However after learning the hard way that complaints to a certain regulator get ignored, I feel we as a community need to decide whether we just break even on HF and then leave it for something regulated in a more (don’t want to sound offensive) legitimate country or whether we can trust them. It is something we should hold a vote on. I know I can not go through the drama of the last few days again. It sucks being victimized and slandered by a company, especially one that is playing dirty. Losing money at Saxo was hard on me but at least they didn’t cheat me. I lost it on my own fair and square from the market going against me. In this case, I was robbed. Plain and simple. Don’t let this happen to you guys. Don’t be fooled by them. Don’t be another one of their victims,
P.s. From tomorrow will start again with writing market outlooks.