Contest Account

Here is my contest account.  At this point, it is psychologically better for me to just assume the account is just wiped out by the PFGBest theft (what was left of it, anyway!).

If and when I have a check in my hands, or a new account with the PFGBest balance, I'll assume this account is $0.

Fox Business News Link

They say television adds 10 pounds to you.  I think it added 20 pounds to my FACE!

Anyhow, here is the link to the interview.

I sure hope we all get our money back!

http://www.foxbusiness.com/on-air/closing-bell/index.html#/v/1729212213001/impact-on-traders-investors-of-pfgbests-missing-funds/?playlist_id=87063

Fox Business News

I will be appearing on Fox Business Channel's "Closing Bell with Liz Claman" at 3 PM EDT today, to give perspective from a PFG account holder.

I figure if it helps people, even a little bit, get their money back, it is worth my time.

Kevin

Bad Day

You know it is not a good day when you are quoted in the news, because some broker stole your money...

http://www.marketwatch.com/story/pfgbest-liquidating-operation-laying-off-hundreds-2012-07-09


But, I feel fortunate because 1) I have multiple accounts at other brokers and 2) let's face it - my contest account was going downhill quickly anyhow.

So, don't feel bad for me.  Feel bad for some of my trader friends with big PFG accounts.  I've talked to a few of them, and tried to cheer them up.  They are somewhat in shock.

Also, feel bad for the honest people at PFG Best, Robbins Trading and worldcupadvisor.com.  I know a bunch of people at those places, and I'll hate to see them lose their jobs because of a scumbag crook.



I'm not sure where this blog will go from here, since there is no more "contest."  There are usually 100-200 people reading this blog each day though, so if you have any suggestions on this blog's future, please comment below.



I may also be interviewed later today on a major TV business network.  If so, I'll post details.

Protect Yourself

It is obvious that after MFG and PFG that the people who are supposed to protect customer accts are not doing so.

Hopefully people reading this post now realize that records can be faked, financial reports can be misleading, etc. I think there are a couple of lessons here (at least that I have followed since MFG):

1. Have multiple accounts through different clearing firms.

2. Put as little as possible in each acct - tell yourself you'll be OK if any one account suddenly vaporizes.

3. You could also wire money in and out every day/week/month, to not leave extra idle funds sitting around in a futures brokerage.

4.  Don't trade futures.  Not an option for many of us, but it is something to consider.

The net effect of doing this will still leave you open to an industry collapse, which I guess could happen. It also will effectively deleverage you (not necessarily a bad thing), since you won't be using margin optimally.


I'm guessing this debacle will lead to SIPC style insurance for futures accounts. A year ago I would have thought that idea was crazy. But after MFG and now PFG, it makes total sense.

Liquidation

Here is the latest message I got from PFGBest.  In past times of broker failure, open positions were simply transferred to a new broker.  Not this time.

**********************************************

Tuesday, July 10, 2012
As referenced in a customer email sent on Monday, July 9, NFA and other officials have put all PFGBEST customer funds on hold.

PFGBEST's clearing FCM will liquidate all open positions still held by PFGBEST customers. Please note that the liquidation may not be reflected on BESTDirect platforms when you logon on Tuesday.

We will update you as any new procedures are stipulated and with any further information as it becomes available.

Contest in Chaos?

The trading contest I am in is being run thru PFG Best.

I have no idea how the e-mail I received below will impact the contest, but I do not think it will be good...

**********************************************


Monday, July 9, 2012
Due to a recent emergency involving Russell R. Wasendorf, Sr., a suicide attempt, some accounting irregularities are being investigated regarding company accounts. PFGBEST is wholly owned by Mr. Wasendorf. Therefore, the NFA and other officials have put all funds on hold, and PFGBEST is in liquidation-only status with our clearing FCM. What this means is no customers are able to trade except to liquidate positions. Until further notice, PFGBEST is not authorized to release any funds. We will update you as any new procedures are stipulated and with any further information as it becomes available.

Contest Update

You know things are bad when you have to keep adjusting the Y axis scale, to allow lower and lower levels of equity....

And yes, I am trading with real money (unfortunately!)

In Case You Like My Advice...

Tomorrow, Thursday July at 8 PM EDT I will be giving a free live webinar on "How to Trade Like A Champ."

I won't be discussing my abysmal contest performance, but I will be giving some (hopefully) good advice on trading.  I'll also be talking a bit about my SFE Trading System (full disclosure: I do offer the SFE System for sale).

If you've enjoyed this blog, I think you'll see the same kind of truthful, down to earth advice during the webinar.

Anyhow, if you are interested, you can get more information here:

http://www.kjtradingsystems.com/web001.html


Thanks!

62% Max Drawdown - Yikes!!!!

Well, I recovered a tad from my low point.  Still, I'm down about 35% on the year, with a whopping 62% maximum drawdown.

You know the warnings at the bottom of the screen during reckless TV commercials?  I think that warning should be my new blog title:

"Don't Attempt This At Home!"

Seriously, I hope my adventures in this contest make everyone realize that trading can be a roller coaster, can be nerve wracking and can be hazardous to your financial health!