Hello everyone, I'm new on here so please go easy on me.
I am a UK citizen and I got into dealings with a forex money manager based in Florida. They gave their sales pitch and, after serious deliberation, I decided to part with £10,000 (just under $15,000 at the time). I also trade Forex, although still on demo accounts - that pool of money was what I set aside to use to trade when I got more confident and competent. My thinking was that seeing as I could watch the screen whilst they traded, I would learn things AND the only was I'd lose my money is if they went bust (but they're registered, so in that event I would be able to claim it back).
Anyway, these guys use this method for trading range bound markets on a Yen cross. Which is fine when the market is ranging but not so when it is trending. I expressed concern about this, but they replied saying that I was a novice and they were making money (which was true, I guess) so I figured I'd give them the benefit, thinking they'd be smart enough to know when not to use it.
To cut the long story short, one day the market started to trend, but these guys continued to put orders out as usual, but obviously the market was trending up and was not coming back. Seeing that we were haemorraging money, some idiot thought it would be a good idea to massively increase the leverage, akin to calling the top of the market. But it was just not coming back. So they kept sending out these large orders and leaving them in. Like $2000 loss orders!
As a trader, I believe you can have your fancy systems and companies, but the basics of trading is all about discipline. It's very easy to take stupid risk when it is someone else's money. Can you believe, that day, that they wiped out my WHOLE account, which started the day at $20,000? I am not looking to take legal action because they lost money, because I understand the risks, but they were VERY reckless with the money (I have the statement as proof!) and this account was blown up in the space of ONE month!
Sorry for the long post, but please if anyone could help as to whether I have a legitimate basis for some kind of claim, and perhaps a starting point, I would be very grateful.
Kind regards,
cmillee.
I am a UK citizen and I got into dealings with a forex money manager based in Florida. They gave their sales pitch and, after serious deliberation, I decided to part with £10,000 (just under $15,000 at the time). I also trade Forex, although still on demo accounts - that pool of money was what I set aside to use to trade when I got more confident and competent. My thinking was that seeing as I could watch the screen whilst they traded, I would learn things AND the only was I'd lose my money is if they went bust (but they're registered, so in that event I would be able to claim it back).
Anyway, these guys use this method for trading range bound markets on a Yen cross. Which is fine when the market is ranging but not so when it is trending. I expressed concern about this, but they replied saying that I was a novice and they were making money (which was true, I guess) so I figured I'd give them the benefit, thinking they'd be smart enough to know when not to use it.
To cut the long story short, one day the market started to trend, but these guys continued to put orders out as usual, but obviously the market was trending up and was not coming back. Seeing that we were haemorraging money, some idiot thought it would be a good idea to massively increase the leverage, akin to calling the top of the market. But it was just not coming back. So they kept sending out these large orders and leaving them in. Like $2000 loss orders!
As a trader, I believe you can have your fancy systems and companies, but the basics of trading is all about discipline. It's very easy to take stupid risk when it is someone else's money. Can you believe, that day, that they wiped out my WHOLE account, which started the day at $20,000? I am not looking to take legal action because they lost money, because I understand the risks, but they were VERY reckless with the money (I have the statement as proof!) and this account was blown up in the space of ONE month!
Sorry for the long post, but please if anyone could help as to whether I have a legitimate basis for some kind of claim, and perhaps a starting point, I would be very grateful.
Kind regards,
cmillee.