Lost money in commodities trading

[Johnlim2478]

If the promised something like low risk safe bets, etc. You may still have fighting chance. Because that person doing something that is not suitable with your risk profile.. but im not expert on this. Better ask someone with more knowledge.. 6 figures means the person is selling options with your account and it goes into the money?

if the person is not a registered broker? the options did not go into the money actually, but during the crash the broker increases the margins to hold those trades substantially. Because when the you sign up for the account, I noticed that these risks were actually highlighted in those forms (i.e risk of losing over principle when signing up for margins agreement). Am i still able to argue that i am unaware of the risks? or that the risks were undisclosed to me?

 

[JuniorLion]

if the person is not a registered broker? the options did not go into the money actually, but during the crash the broker increases the margins to hold those trades substantially. Because when the you sign up for the account, I noticed that these risks were actually highlighted in those forms (i.e risk of losing over principle when signing up for margins agreement). Am i still able to argue that i am unaware of the risks? or that the risks were undisclosed to me?

If you sign on the forms, you can't argue otherwise.

 

[tiertime]

wow.. 6 digit figure can be a lifetime of savings for many ppl... maybe have to declare bankruptcy...

 

[JuniorLion]

if the person is not a registered broker? the options did not go into the money actually, but during the crash the broker increases the margins to hold those trades substantially. Because when the you sign up for the account, I noticed that these risks were actually highlighted in those forms (i.e risk of losing over principle when signing up for margins agreement). Am i still able to argue that i am unaware of the risks? or that the risks were undisclosed to me?

I have PM'ed you.

 

[TabascoSauce]

6 digits.. that a really expensive lesson.

 

[revhappy]

6 digits.. that a really expensive lesson.

On top of his lost principal. It is huge. How can anybody gamble away like that with other people's money? Did some real novice handle the money? What about stoplosses? OPs friend has to do a lot of explaining to OP.

Sent from Xiaomi REDMI NOTE 4 using GAGT

 

[Johnlim2478]

On top of his lost principal. It is huge. How can anybody gamble away like that with other people's money? Did some real novice handle the money? What about stoplosses? OPs friend has to do a lot of explaining to OP.

Sent from Xiaomi REDMI NOTE 4 using GAGT

Explaining to me aside, i'm more curious on possible means of recovery.

The amount is around 90K to be exact.

 

[Mecisteus]

Explaining to me aside, i'm more curious on possible means of recovery.

The amount is around 90K to be exact.

Don't try to adopt a gambler mindset to recoup your losses.

Stop dealing with that broker.

Setup a proper investment plan with regulated products.

 

[3dfxplayer]

Explaining to me aside, i'm more curious on possible means of recovery.

The amount is around 90K to be exact.

I don't think there is any hope of you recovering your money if there is no written agreement that he will be on the hook for losses.

The guy took the deal because it was all upside and no downside for him, take this as an expensive lesson, trading records mean nothing in trading, especially if the record is only for one year, a trader is only as good as his last trade.

 

[Smokey.B]

Margin is already so risky u let others trade for u.

Are u able to pay the 90k ?

 

[Johnlim2478]

Margin is already so risky u let others trade for u.

Are u able to pay the 90k ?

I can, but that will leave me with very little.

 

[TabascoSauce]

On top of his lost principal. It is huge. How can anybody gamble away like that with other people's money? Did some real novice handle the money? What about stoplosses? OPs friend has to do a lot of explaining to OP.

Sent from Xiaomi REDMI NOTE 4 using GAGT

There's clear asymmetric of risk. If the trader make money, he earns a cut. If he lose money, he faces no consequence. If I'm the trader, I will also take excessive risk regardless if I'm noob or pro... bcos all the risk is on TS.

 

[alexchia01]

Explaining to me aside, i'm more curious on possible means of recovery.

The amount is around 90K to be exact.

You have to make a police report that someone has illegally use your account and sue that person to pay the losses.

If you don't bring this to the light, that idiot that losses all your money is going to run and probability go to scam someone else. You'll have to bear the full losses.

If you bring this to the light, that idiot get investigated for illegally access and scamming. He could go to jail for this. The judge may ask him to pay instead of you. Even if you have to pay the losses, at least you get the person responsible in the authority vision.

Better to do something than nothing.

 

[Mecisteus]

You have to make a police report that someone has illegally use your account and sue that person to pay the losses.

You are telling him to fabricate the statement?

The broker can provide proof if the account details have been shared.

 

[m/mink]

You authorised him to trade on your behalf using your personal account.
It's a margin account which can potentially go negative if market goes against you.

He did well in 2017, but the recent crash in 2018 wiped out not just all your capital in the account but margin losses as well?

Sorry to say but you have little case here... sigh.

 

[Johnlim2478]

You have to make a police report that someone has illegally use your account and sue that person to pay the losses.

If you don't bring this to the light, that idiot that losses all your money is going to run and probability go to scam someone else. You'll have to bear the full losses.

If you bring this to the light, that idiot get investigated for illegally access and scamming. He could go to jail for this. The judge may ask him to pay instead of you. Even if you have to pay the losses, at least you get the person responsible in the authority vision.

Better to do something than nothing.

If in our text, I have given him the login details willingly. Is he still liable for illegal access?

The loss exposure communicated was less than what happened. However, in the forms submitted to the broker, i realised that it was highlighted that i can lose more than what i invested in the account and i signed it...

 

[m/mink]

You have to make a police report that someone has illegally use your account and sue that person to pay the losses.

If you don't bring this to the light, that idiot that losses all your money is going to run and probability go to scam someone else. You'll have to bear the full losses.

If you bring this to the light, that idiot get investigated for illegally access and scamming. He could go to jail for this. The judge may ask him to pay instead of you. Even if you have to pay the losses, at least you get the person responsible in the authority vision.

Better to do something than nothing.

That would just make things worse by making a false report ..
One has to take ownership and responsibility for one's decision.

When it comes to trading, the market can go either direction ..

TS. did your friend explain why there weren't stop losses in place?
Or were his stop losses skipped due to gap down?
did he at least react or call you to make a decision to cut a big loss or just let it crash infinitely?

 

[Johnlim2478]

That would just make things worse by making a false report ..
One has to take ownership and responsibility for one's decision.

When it comes to trading, the market can go either direction ..

TS. did your friend explain why there weren't stop losses in place?
Or were his stop losses skipped due to gap down?
did he at least react or call you to make a decision to cut a big loss or just let it crash infinitely?

yeah understand the market went badly in my favor this time.

i was explained that in options, automatic stop losses are hard to put in place. Heard he lost everything from his side as well. he tried to called me immediately when he saw the crash but it was too late.

 

[m/mink]

If in our text, I have given him the login details willingly. Is he still liable for illegal access?

The loss exposure communicated was less than what happened. However, in the forms submitted to the broker, i realised that it was highlighted that i can lose more than what i invested in the account and i signed it...

TS ah... from what you wrote so far.
it's not a normal trading account, it's a leverage/margin account, there are financial charges incurred daily.

Your capital can be $20k, but you can trade up to $200k.

When you are in a $200k position, a 10% drop will effectively wipe out all your capital.
When it drops 50%, you will -$100k ....

 

[m/mink]

yeah understand the market went badly in my favor this time.

i was explained that in options, automatic stop losses are hard to put in place. Heard he lost everything from his side as well. he tried to called me immediately when he saw the crash but it was too late.

I guessed he did his part, but things are beyond his control also when market suddenly reverses.
I very heart ache for you 2 .... but that's how brutal trading is.