ul 12, 2012
Sad day today, but could have been much worse
Fellow investors, it is with great regret that I would like to explain today's losses with the Low Risk PAMM. Keep in mind that I have lost $ as well. Last week the VPS did an update and restarted the system. When this happens, an application restarts the MT4 platforms to resume trading. For whatever reason that I cannot explain, double MT4 sessions were opened for the low risk account. When this occurs, it is well known that double trades will take place. At the same time EURAUD, USDCHF and AUDNZD embarked in a diagonal channel with trades in the wrong side of the channel. I will not lie to you: I have lost some sleep lately. At one time the low risk account reached a margin level of 260%. This is scary, but unfortunately, my only option at the time would have been to close positions with EURAUD at a loss of $8,000! In the meantime, FinFX charges a carry fee which was getting to be heavy in the sense that waiting for another week would have resulted in the break even line moving away from current price action. In other words, if today I needed to break even at 1.20...next week it would be 1.30 due to fees! So I chose to cut our losses early, even if EURAUD does eventually recover...but we don't have a crystal ball.As I always say, and rightly so, in the long scheme of things, this loss will be a bump on the road, but for today, it is painful to look at.I share the pain with every one of you. but rest assured that the new margin of 1200% will give me and you a good reason to sleep well today.Finally, a good friend and investor of this same PAMM once said that it was my fear of losing money that makes me good at what I do. This week has been panic mode for me. These things happen and underline one thing: you must diversify! Different brokers, different VPS, different money managers...you get the point. Do not let the total loss of ONE account be your total loss!This time we have dodged the bullet and I have take steps to prevent this in the future, but the system is not full proof.I thank you again for your trust and may the account live another day and with a dollar gained, that is the key after all.