Armazenamento do sistema informático do parque de dados

Negociação de sistemas informáticos de parque de dados
A GTS aplica anos de experiência comercial comercial responsável e orientada pela tecnologia para tornar os mercados financeiros mais eficientes.
A GTS é um fabricante de mercado em ações, etf (s), commodities, futuros, câmbio e produtos de taxa de juros. Nós somos o maior fabricante de mercado designado na Bolsa de Valores de Nova York responsável por mais de 11 trilhões de dólares de capitalização de mercado. Ao investir nas tecnologias mais recentes e alavancar nossa experiência em todos os regimes de mercado, trazemos consistência, eficiência e transparência para os mercados de hoje.
Cobertura e comentário por.
REGISTRO DE TRILHA PROVOSO.
A GTS opera na interseção dos mercados de capitais e tecnologia avançada. Nossas inovações trazem melhor descoberta de preços, execução comercial e transparência para investidores e preços eficientes para o mercado.
Destaques.
O GTS comercializa aproximadamente 3-5% do mercado de ações em dinheiro dos EUA O GTS comercializa mais de 10.000 instrumentos diferentes globalmente A GTS executa milhões de negócios distintos por dia A GTS é a maior fabricante de mercado da Bolsa de Valores de Nova York (US $ 11,7 Trilhões em capitalização de mercado)
NOSSOS POVOS SÃO PARAMOUNT.
O GTS é um negócio dirigido por pessoas. Nossos funcionários vêm de origens diversas, mas compartilham um espírito comum: lealdade, curiosidade inquieta, adesão implacável aos mais altos padrões e compromisso com a visão e a visão da empresa, bem como um pouco de uma série competitiva. Saiba como você pode se juntar à nossa equipe.
Ari Rubenstein é co-fundador e diretor executivo da GTS, liderando a gestão diária da empresa.
David Lieberman é co-fundador e diretor de operações da GTS.
Steve Reich é o chefe da FX e Commodity Liquidity Solutions no GTS.
Ryan Sheftel é o Chefe Global de Renda Fixa no GTS.
Michael Katz é o chefe de situações especiais dos sistemas de comércio global.
Patrick Murphy é chefe da NYSE Market Making and Listing Services no GTS.
Rama Subramaniam é chefe de gerenciamento de ativos sistemáticos.
Como um dos principais fabricantes de mercado, o GTS e seus líderes são freqüentemente citados como especialistas da indústria na mídia e nossa empresa está empenhada em abordar as últimas tendências no comércio eletrônico. Isso reflete nossa missão de ser um participante de classe mundial nos mercados financeiros.
O banco francês BNP Paribas e o fabricante de mercado Global Trading Systems estão juntando-se para negociar títulos do Tesouro dos EUA, somando uma série de negócios nos quais os bancos aproveitaram o poder de computação de comerciantes de alta freqüência. Leia mais & raquo;
A Global Trading Systems, uma das quatro empresas de negociação de alta freqüência que gerencia quase todas as negociações no piso da NYSE, está fazendo uma peça para clientes corporativos. Leia mais & raquo;
Bloomberg EUA fala com Ari Rubenstein, CEO da Global Trading Systems Leia mais & raquo;
A GTS anunciou hoje que a sua subsidiária, a GTS Securities LLC, pretende tornar-se um Designated Market Maker (DMM) na New York Stock Exchange (NYSE), ao adquirir o negócio de negociação DMM da Barclays PLC. Leia mais & raquo;
Jornal de Wall Street.
Uma maior supervisão tornará a negociação de alta freqüência mais segura e segura, aumentando a confiança e a participação dos investidores. Leia mais & raquo;

Negociação de sistemas informáticos de parque de dados
ESTADOS UNIDOS DA AMERICA.
COMMODITY FUTURES TRADING COMMISSION.
A Commodity Futures Trading Commission (a "Comissão") tem motivos para acreditar que Seungho Kim ("Kim") e Houston System Trading, LLC ("HST") violaram, e John Ki Park ("Park") ajudou e instigou a violações das Seções 4b (a) (i) e (iii) e 4 o (1) do Commodity Exchange Act, conforme alterada (a "Lei"), 7 USC §§6b (a) (i) e (iii) e 6 o (1) (1994), e secção 4.41 (a) e (b) dos Regulamentos da Comissão ("Regulamentos"), 17 C. F.R. §4.41 (a) e (b) (1999). A Comissão também tem motivos para acreditar que Kim e HST violaram as Seções 4k, 4m (1) e 4n (4) da Lei, 7 U. S.C. §§ 6k, 6m (1) e 6n (4) (1994) e Secções 3.12, 4.20, 4.21, 4.22, 4.23, 4.31 e 4.33 do Regulamento, 17 C. F.R. §§3.12, 4.20, 4.21, 4.22, 4.23, 4.31 e 4.33 (1999). Por conseguinte, a Comissão considera apropriado e, no interesse público, que os procedimentos administrativos públicos sejam, e são, por este meio, instituídos para determinar se os inquiridos se envolvem nas violações aqui enunciadas e para determinar se um decreto deve ser emitido impondo sanções corretivas.
Em antecipação à instituição de um processo administrativo, os Inquiridos apresentaram Ofertas de Liquidação (as "Ofertas"), que a Comissão decidiu aceitar. Sem admitir ou negar os achados de fato nesta Ordem, os Inquiridos reconhecem o atendimento desta Ordem Institucional de Procedimentos de acordo com as Seções 6 (c), 6 (d) e 8a (4) da Lei de Câmbio de Mercadorias, Fazendo Constatações e Impondo Sanções Remédios ("Ordem"). Cada um dos inquiridos concorda com o uso das conclusões nesta Ordem neste processo e em qualquer outro processo interposto pela Comissão ou ao qual a Comissão é parte. 1.
A Comissão considera o seguinte:
Uma vez que em ou cerca de outubro de 1997 e continuando pelo menos em março de 1998, o HST e Kim solicitaram que investidores participassem de três pools de commodities, que negociavam contratos de futuros de commodities. O HST e Kim também solicitaram que as pessoas abram contas de negociação de futuros de commodities para serem gerenciadas pelo HST e Kim. Nem a HST nem a Kim foram registradas na Comissão em qualquer capacidade.
Como parte da solicitação de investidores, o HST e Kim deturparam, entre outras coisas, o histórico do programa de negociação do HST (o "Programa HST") e o registro comercial da Kim e HST de acordo com o programa. Kim também garantiu que as perdas dos investidores seriam limitadas a vinte por cento do seu investimento. Na verdade, de novembro de 1997 a março de 1998, os pools de commodities do HST perderam cinquenta e três por cento do seu valor e, com exceção de uma conta, as contas gerenciadas perderam entre trinta e sete e cem por cento de seu valor.
A HST também manipulou fundos de investidores misturando esses fundos com fundos pessoais de Kim e outros fundos de negócios e não conseguiu manter livros e registros. O HST e Kim não conseguiram manter livros ou registros para identificar e distinguir os fundos recebidos dos investidores em cada pool de commodities de fundos nos outros grupos, fundos pessoais e fundos de outros empreendimentos comerciais. O HST e Kim também não conseguiram manter os registros exigidos pelos Regulamentos 4.23 e 4.33 da Comissão relativos aos participantes do pool de commodities e aos clientes da conta gerenciada.
Os pools de commodities do HST e as contas gerenciadas foram introduzidas pela J. K. Park, Ltd. ("JKP"), um corretor de introdução registrado ("IB"), para comerciantes de comissões de futuros registrados ("FCMs"). Park, o único principal e pessoa associada registrada ("AP") da JKP, permitiu que Kim usasse o escritório da JKP para o negócio de negociação de futuros de commodities da HST. Vários dos potenciais clientes da Kim abriram contas de negociação de futuros de commodities que a JKP apresentou a uma FCM depois de conversar com Kim e Park sobre o Programa HST. Park sabia sobre as representações fraudulentas de Kim e, em pelo menos uma ocasião, o Park confirmou a garantia da Kim contra perdas. Park, portanto, ajudou e incentivou a fraude cometida pelo HST e Kim.
Seungho Kim, que reside no 970 Bunkerhill # 128, Houston, Texas, nunca foi registrado com a Comissão em qualquer capacidade. Kim é o presidente do HST.
Houston System Trading, LLC, uma corporação do Texas com seu último endereço comercial conhecido em 7500 San Felipe, Suite 880, Houston, Texas, nunca foi registrada na Comissão em nenhuma capacidade.
John Ki Park, que reside em 727 Bunkerhill # 68, Houston, Texas, foi anteriormente registrado como AP da JKP, um IB registado e operador de pool de commodities ("CPO"), de junho de 1997 a setembro de 1999, e como AP de Lind-Waldock Financial Partners, Inc., um CPO registrado, de junho de 1997 a agosto de 1999. Park tem sido um AP registrado da Paradigm Securities, Inc., um consultor comercial comercializado ("CTA"), desde dezembro de 1999.
1. A Formação do HST.
Kim formou a HST em outubro de 1997 para negociar contratos de futuros de commodities. O HST abriu uma conta de negociação de futuros de commodities, introduzida pela JKP para uma FCM, em outubro de 1997. O parque era o único diretor da JKP. Park e Kim já haviam sido parceiros em empresas não relacionadas à negociação de futuros de commodities.
Kim recebeu a assistência do Park na formação do HST e preencher os documentos de abertura da conta para negociar futuros de commodities. O Park também permitiu que Kim usasse uma parte do espaço de escritório da JKP para configurar uma área de trabalho para o negócio de commodities do HST e equipamentos de escritório compartilhados JKP e HST. O único negócio indicado na porta da frente, no entanto, era o da JKP. Kim responderia o telefone para a JKP na ocasião, e Park responderia ao telefone pelo HST. Foi, portanto, difícil para os visitantes do escritório identificar JKP e HST como duas entidades comerciais separadas e não relacionadas. Na verdade, alguns dos clientes da HST acreditavam que Kim e Park eram parceiros no negócio de commodities.
2. Os pools de commodities do HST.
A partir de pelo menos outubro de 1997, o HST e a Kim solicitaram aos participantes da pool que investirem em três pools de commodities separados operados pelo HST, intitulado Match, Austin e JKP ("pools HST"). HST e Kim obtiveram pelo menos dezenove participantes na conta Match e pelo menos dezesseis participantes na conta Austin. 2 Os investidores supostamente participaram do pool em unidades de US $ 10.000 para financiar esse investimento. O HST e Kim representaram aos investidores que a HST obteria um empréstimo bancário por US $ 10.000 por cada investidor. De acordo com o Contrato de Assessoria ("Contrato") que Kim havia investido nos signos, os participantes em cada um dos pools deveriam fazer pagamentos mensais de US $ 600 por um período de dezoito meses, para um investimento total de US $ 10.800 por investidor. Os pagamentos de US $ 600 pagariam o empréstimo obtido pelo HST, com os restantes US $ 800 a serem pagos pelos investidores ao HST como juros sobre o empréstimo. Cada grupo deveria ter aproximadamente 20 investidores e um investimento total de US $ 200.000 no primeiro dia de negociação.
O HST abriu uma única conta de negociação em uma FCM, 3 cuja conta foi apresentada à FCM pela JKP, e depois a conta foi dividida em quatro subcontas: uma em dinheiro e uma para cada uma das unidades. A conta de caixa não negociou e foi utilizada para cobrir os requisitos de caixa das outras contas de pool. Kim garantiu os potenciais participantes da pool oralmente e no Acordo que as perdas da pool seriam limitadas a vinte por cento do investimento.
3. O HST Managed Accounts.
O HST e Kim também solicitaram que os investidores criassem contas gerenciadas e, pelo menos, seis pessoas o fizeram. Cada conta gerenciada deveria ser negociada de acordo com o Programa HST e os clientes assinaram o mesmo Contrato assinado pelos participantes do grupo HST, incluindo a provisão que garantiu que as perdas seriam limitadas a 20% do investimento. Cada cliente de conta gerenciada do HST deu autoridade de negociação escrita a Kim para trocar a conta. 4.
4. Representações fraudulentas para os Investidores do HST.
O HST e Kim solicitaram aos investidores através de representações orais, folhetos, seminários, pelo menos um artigo de jornal e um documento de divulgação. No decurso da solicitação de investidores, o HST e Kim deturrieram a natureza do Programa de HST e o histórico de HST e Kim. A HST e a Kim também garantiram que as perdas dos investidores seriam limitadas a 20% do investimento. O Park repetiu estas falsas declarações sobre o histórico do programa de negociação do HST para vários investidores que vieram ao escritório da JKP. Park sabia que o HST e Kim estavam garantindo perdas comerciais limitadas para potenciais investidores e, em pelo menos uma ocasião, reiterou a garantia a dois investidores.
uma. Notificação errada sobre o Programa de Negociação.
Kim disse aos potenciais investidores que seu irmão havia desenvolvido um programa de negociação de futuros de commodities informáticos muito eficaz e que ele (Kim) havia feito uma negociação de dinheiro muito boa de acordo com o programa de negociação. Kim convidou investidores potenciais para visitar o escritório para ver o sistema informático e testemunhar o sucesso do programa de negociação do HST. Vários investidores que não falavam coreano não podiam se comunicar bem com Kim e Park explicou o Programa de HST a esses investidores. Na verdade, o programa de computador HST era um sistema comercialmente disponível que gera sinais de compra e venda de acordo com os movimentos do mercado, e não um programa proprietário desenvolvido pelo irmão de Kim.
b. Informações erradas sobre o HST e Kim's Track Record.
Kim representou para potenciais investidores que ele e o HST trocaram com êxito usando o programa de negociação do HST. Na verdade, o HST não tinha experiência comercial anterior, e a anterior negociação da Kim usando o Programa HST resultou em perdas comerciais líquidas. Kim negociou de acordo com o Programa HST para sua conta de futuros de commodities individuais de março de 1997 a maio de 1997 e perdeu mais de US $ 17.000. Ele negociou uma conta conjunta com seu irmão de acordo com o Programa HST, de maio de 1997 a setembro de 1997, e perdeu mais de US $ 50.000.
O HST e Kim deturparam ainda mais o histórico do Programa HST, levando os investidores a acreditar que os resultados comerciais hipotéticos eram resultados comerciais reais. O HST e a Kim forneceram a alguns investidores um documento de divulgação contendo uma seção intitulada "Intra day / Real time test", com várias páginas intituladas "Desempenho do programa em detalhes em 97 de janeiro a dezembro de 97". O desempenho parece ser o resultado comercial real do Programa HST para o período de janeiro de 1997 a dezembro de 1997, dividido em períodos de três meses. Os resultados de desempenho mostram operações muito lucrativas, refletindo lucros por cada período de três meses. Os números de fim de ano de 1997 refletem um retorno na conta de "969%". O suposto desempenho e seu suporte são enganosos porque os resultados apresentados são resultados hipotéticos testados, não resultados comerciais reais. A natureza enganosa das divulgações do desempenho é exacerbada por várias páginas de gráficos que mostram os supostos sinais de compra e venda para cada mês de 1997, que supostamente geraram os lucros divulgados nas páginas anteriores. Esses sinais comerciais não foram realmente seguidos pelo HST.
O primeiro parque viu o documento de divulgação em janeiro ou fevereiro de 1998, quando um cliente do HST o mostrou. Park percebeu que os dados fornecidos no Documento de Divulgação eram resultados de negociação hipotéticos, mas não faziam nada para corrigir as falsas declarações e continuaram a aceitar as comissões geradas por essas contas por pelo menos mais três meses. Além disso, apesar de o Park saber que o documento de divulgação continha resultados comerciais hipotéticos, ele disse a Kim para adicionar ao documento de divulgação a afirmação de que "o desempenho não é necessariamente indicativo de resultados futuros" 5, implicando ainda que o desempenho divulgado foi o resultado comercial real.
c. Garantia falsa contra perdas.
A HST e a Kim representaram para investidores potenciais que as perdas seriam limitadas a 20% de seu investimento, e o Documento de Acordo e Divulgação repetiu essa garantia. Um investidor deu a Park uma cópia do Contrato que contém a garantia, buscando obter a opinião da Park sobre o Contrato antes de assiná-lo. Park revisou o acordo e disse ao investidor que ele poderia assinar o documento. Park também confirmou, em uma ocasião, a pelo menos outros dois investidores, que Kim poderia cumprir a garantia, informando um investidor especificamente de que Kim era um homem rico e tinha recursos suficientes para proteger o investimento do investidor.
HST e Kim, no entanto, não cumpriram o Contrato. Eles não pararam de negociar ou fechar posições quando as contas perderam 20%, e as perdas de investidores, em última instância, excederam substancialmente 20%.
d. Deliberações relativas ao nível de participação no grupo.
A HST e a Kim representaram aos investidores que o HST obteria um empréstimo bancário por US $ 10.000 por cada investidor e que cada grupo deveria ter aproximadamente 20 investidores e um investimento total de US $ 200.000 no primeiro dia de negociação. O HST, no entanto, não obteve um empréstimo bancário como representado, e o HST não depositou na conta do pool $ 10.000 por cada investidor do pool. Na verdade, o total de fundos recebidos nas contas de negociação para os três grupos combinados era de apenas US $ 163.300, composto por aproximadamente US $ 52.000 atribuíveis a investidores e fundos substanciais que pertenciam a Kim.
O Acordo também representava que o HST enviaria uma declaração de desempenho mensal a cada participante do grupo que informasse os lucros e perdas comerciais do respectivo grupo. No entanto, o HST enviou apenas uma declaração de desempenho para agrupar os participantes no pool de correspondências e nenhuma outra declaração de desempenho foi enviada para qualquer participante em qualquer um dos pools. Em março de 1998, vários investidores ficaram preocupados em não ter recebido relatórios de desempenho. Logo eles descobriram que o HST perdeu mais de 20% dos fundos das piscinas e solicitou retirar-se das piscinas. Kim assinou uma carta prometendo novamente que ele pagaria a esses investidores suas perdas em excesso de 20% do investimento, mas não o fez.
D. DISCUSSÃO JURÍDICA.
1. HST e Kim fizeram falsas declarações fraudulentas de fatos materiais em violação da seção 4b (a) (i) e (iii) da Lei.
A Seção 4b (a) (i) e (iii) da Lei proíbe qualquer pessoa de trapaça, defraudar ou enganar intencionalmente, ou tentar enganar, defraudar ou enganar intencionalmente, outras pessoas ou em conexão com a compra e venda de contratos de futuros de commodities. A mera tentativa de defraudar ou enganar viola a Seção 4b (a) da Lei. Hirk v. Agri-Research Council, Inc., 561 F.2d 96, 103-104 (7º Cir. 1977). Uma conduta fraudulenta pode ocorrer durante a solicitação de contas de commodities. Saxe v. E. F. Hutton & amp; Co. Inc., 789 F.2d 105, 109-11 (2d Cir. 1986).
A falsa representação ou omissão deve ser de um fato relevante. Veja Saxe, 789 F.2d em 110-11; Hammond v. Smith Barney Harris Upham & amp; Co., [1987-1990 Transferer pasta] Comm. Fut. L. Rep. (CCH) ¶ 24.617 em 36.657-59 (CFTC 1 de março de 1990). Uma declaração é importante se for substancialmente provável que um investidor razoável considere o assunto importante na tomada de uma decisão de investimento. TSC Indus., Inc. v. Northway, Inc., 426 U. S. 438, 449 (1976); Sudol v. Shearson Loeb Rhoades, Inc., [1984-1986 Transfer Agent] Comm. Fut. L. Rep. (CCH) ¶ 22 748, às 31.119 (CFTC, 30 de setembro de 1985). Em geral, todas as formas de omissões e falsas declarações de fato relevante em relação a transações de futuros violam as disposições antifraude da Lei, incluindo omissões e representações sobre a probabilidade de lucro e outros assuntos que um investidor razoável consideraria material para suas decisões de investimento. Veja, por exemplo, First Nat. Monetary Corp. v. Weinberger, 819 F.2d 1334 (6º Cir. 1987); CFTC v. US Metals Depository Co., 468 F. Supp. 1149 (S. D.N. Y. 1979); CFTC v. Crown Colony Commodity Options Ltd., 434 F. Supp. 911 (S. D.N. Y. 1977). A falsa representação ou omissão deve ser feita com scienter. Ver Drexel Burnham Lambert, Inc. v. CFTC, 850 F.2d 742, 748 (D. C. Cir. 1988).
O HST e Kim violaram esta disposição antifraude de várias maneiras. HST e Kim repetidamente deturparam os potenciais investidores de que o Programa HST tinha sido bem sucedido e que a Kim tinha feito negociação de dinheiro em futuros de commodities com o Programa HST. CFTC v. Commonwealth Financial Group, Inc., 874 F. Supp. 1345, 1353-54 (S. D. Fla. 1994) (as falsas declarações sobre o registro de negociação de uma empresa ou corretor são fraudulentas porque o sucesso e a experiência do passado são fatores importantes para investidores razoáveis). A HST e a Kim ultrapassaram os investidores apresentando resultados hipotéticos de negociação para o Programa HST em documentos, indicando lucros substanciais por um período de um ano, quando, de fato, não houve tal negociação real e os resultados hipotéticos não foram identificados como tal. R & amp; W Technical Services LTD v. CFTC, 205 F.3d 165 (5º Cir. 2000) (o desempenho da publicidade com base em trocas de papel em tempo real, e não em negociações reais, foi uma omissão relevante em violação da Seção 4b da Lei); CFTC v. Skorupskas, 605 F. Supp. 923, 933 (E. D. Mich. 1985) (deturpando tabelas de desempenho hipotéticas como sendo resultados de negociação reais violados na Seção 4b da Lei). Os resultados comerciais do sistema e o fato de que os resultados divulgados nos Documentos de divulgação foram hipotéticos em vez de resultados comerciais reais são fatos relevantes. Muniz v. Lassila, [1990-1992 Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 25.225 em 38.650 (CFTC 17 de janeiro de 1992) (deturpando uma abordagem teórica, não testada, como um programa de negociação estabelecido e bem sucedido é material e violou a Seção 4b da Lei). O HST e Kim também falaram falsamente aos potenciais investidores de que não perderiam mais de vinte por cento de seu investimento, além de defraudar os investidores ao representar falsamente que as bacias obteriam empréstimos e cada pool teria US $ 200.000 disponível para negociação no primeiro dia do investimento .
HST e Kim sabiam que essas declarações eram falsas quando as criaram. Este desprezo consciente e consciente da verdade equivale a uma conduta intencional ou, pelo menos, a uma imprudência suficiente para demonstrar cientista. Hammond, ¶ 24, 617 em 36 659. A conduta imprudente "parte tão longe dos padrões de cuidados comuns que é muito difícil acreditar que [o ator] não estava ciente do que estava fazendo". Drexel Burnham Lambert, 850 F.2d em 748-49.
Conseqüentemente, o HST e Kim defraudaram os investidores em violação da Seção 4b (a) (i) e (iii) da Lei por deturpar e omitir fatos relevantes enquanto solicita e aceita fundos para investir em futuros de commodities.
2. HST, enquanto atuam como CPO e CTA, e Kim, enquanto atuam como AP de um CPO e CTA, Violaram.
A seção 4o (1) da Lei e o Regulamento 4.41 (a) & amp; (b)
uma. HST e Kim Investidores Defraudados em Violação da Seção 4 o (1) da Lei e do Regulamento 4.41 (a)
A Seção 4 o (1) (A) da Lei torna ilegal para um CPO ou CTA, ou um AP de um CPO ou CTA, empregar direta ou indiretamente qualquer dispositivo, esquema ou artificio para defraudar qualquer participante ou cliente. A Seção 4 o (1) (B) da Lei torna ilegal o CPO ou o CTA, ou um AP de um CPO ou CTA, para se envolver em qualquer transação, prática ou curso de negócios que funcione como uma fraude ou engano sobre qualquer participante ou cliente. Embora a Seção 4 o (1) (A) da Lei exija prova de cientista, a Seção 4 o (1) (B) não acontece, desde que a conduta funcione como uma fraude. Em Kolter, [1994-1996 Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 26 262 a 42 198 (CFTC, 8 de novembro de 1994) (citando Messer v. E. F. Hutton & Co., 847 F.2d 673, 678-79 (11º Cir. 1988)).
O Regulamento 4.41 (a) proíbe a publicidade fraudulenta por CPOs e CTAs, e seus principais. O Regulamento 4.41 (a) proíbe os CPOs e CTAs e seus principais, de anunciar "de uma maneira que: (1) [e] mplea qualquer dispositivo, esquema ou artificio para defraudar qualquer participante ou cliente ou potencial participante ou cliente, ou (2 ) [i] nvolve qualquer transação, prática ou curso de negócios que atua como uma fraude ou engano sobre qualquer participante ou cliente ou qualquer participante ou cliente potencial ". A mesma conduta do HST e Kim que violou a Seção 4b (a) da Lei também violou a Seção 4 o (1) da Lei e o Regulamento 4.41 (a) porque eles se envolveram nesse comportamento em suas capacidades como um CTA / CPO e um AP de um CTA / CPO, respectivamente. Skorupskas, 605 F. Supp. em 932-33 (a mesma conduta que viole a Seção 4b pode violar a Seção 4 o (1)).
b. HST e Kim apresentaram resultados de desempenho hipotético sem a declaração de cautela exigida em violação do Regulamento 4.41 (b)
O Regulamento 4.41 (b) exige que qualquer anúncio que exiba resultados de desempenho hipotéticos de um CTA ou CPO deve exibir de forma proeminente uma declaração de advertência alertando clientes para as limitações inerentes aos resultados de desempenho hipotéticos. A declaração de cautela estabelecida no Regulamento 4.41 (b) ou a declaração de cautela similar redigida pela NFA deve ser usada para satisfazer este requisito. O Regulamento 4.41 (c) prevê que o requisito de declaração de cautela se aplica a todas as formas de material promocional.
O HST e Kim violaram o Regulamento 4.41 (b) usando um Documento de Divulgação contendo desempenho hipotético sem incluir a indicação cautelar necessária, o que induziu os investidores a acreditar que os resultados hipotéticos mostrados eram resultados reais alcançados pelo Programa HST. Skorupskas, 605 F. Supp. no 933 n.21 (as tabelas de desempenho apresentando resultados de desempenho hipotéticos e talvez ficticios violaram o Regulamento 4.41 (b) porque não foram acompanhadas da declaração cautelar exigida).
3. HST, atuando como um CPO sem o registro exigido, violou a seção 4m (1) da lei.
A Seção 4m (1) da Lei prevê que é ilegal que qualquer CPO, a menos que esteja registrado nos termos da Lei, faça uso dos correios ou de qualquer meio ou instrução do comércio interestadual em conexão com sua empresa como um CPO. A Seção 1a (4) da Lei define um operador de pool de commodities como qualquer pessoa envolvida em uma empresa que seja da natureza de um trust de investimento, sindicato ou empresa similar e que, em conexão com isso, solicite, aceite ou receba de outros fundos, valores mobiliários ou bens, diretamente ou através de contribuições de capital, a venda de ações ou outras formas de valores mobiliários, ou de outra forma, com a finalidade de negociar qualquer mercadoria para entrega futura ou sujeita às regras de qualquer contrato mercado.
De 1997 a 1998, o HST solicitou e recebeu fundos para agrupar nos pools de commodities Match, Austin e JKP para negociar contratos de futuros de commodities. O HST era um CPO dentro da definição de Seção 1a (4) da Lei. A HST recebeu fundos através de transferências por correio e por fio para investir nas bacias. O HST violou a Seção 4m (1) da Lei porque usou o correio e outros meios de comércio interestadual em conexão com seus negócios como um CPO, enquanto não se registrou na Comissão como tal.
4. HST, atuando como um CTA sem o registro exigido, violou a seção 4m (1) da lei.
O Artigo 4m (1) da Lei prevê na parte relevante que será ilegal para qualquer CTA, a menos que esteja registrado nos termos da Lei, fazer uso dos correios ou de qualquer meio ou instrução do comércio interestadual em conexão com o seu negócio como tal CTA. A Seção 1a (5) da Lei define um CTA como qualquer pessoa que, por indenização ou lucro, se envolve no negócio de assessorar outros, diretamente ou através de publicações, escritos ou meios eletrônicos, quanto ao valor ou a conveniência de negociação em contratos de futuros sobre ou sujeito às regras de um mercado contratual.
O HST era um CTA dentro da definição de Seção 1a (5) da Lei. De 1997 a 1998, o HST recomendou aos investidores individuais, ao negociar contas discricionárias, como negociar contratos de futuros de commodities. O HST deveria receber uma taxa de gerenciamento mensal baseada em lucros para o aconselhamento comercial. O HST recebeu e entregou comunicações por telefone, correio e correio eletrônico em conexão com seus negócios como CTA. O HST violou a Seção 4m (1) da Lei porque usou o correio e outros meios de comércio interestadual em conexão com seus negócios como um CTA, enquanto não se registrou na Comissão como tal.
5. Kim, enquanto atua como AP de um CPO e CTA sem o registro exigido, violou a Seção 4k da Lei e o Regulamento 3.12 (a)
A Seção 4k da Lei e a Seção 3.12 (a) dos Regulamentos fornecem na parte relevante que será ilegal que qualquer pessoa seja associada a um corretor de introdução, a um operador de pool de commodities ou a um consultor de negociação de commodities como sócio, funcionário, empregado, ou agente em qualquer capacidade que envolva a solicitação ou aceitação de pedidos de clientes, a menos que essa pessoa seja registrada como uma pessoa associada de tal intermediário de introdução, operador de pool de commodities ou consultor de negociação de commodities.
De 1997 a 1998, Kim solicitou aos participantes dos grupos de produtos Match, Austin e JKP que fossem operados pelo HST, um CPO, e também solicitaram clientes para contas discricionárias a serem negociadas ou dirigidas pelo HST, um CTA. Assim, Kim violou a Seção 4k da Lei e o Regulamento 3.12, atuando como AP de um CPO e CTA enquanto não se registrou como tal.
6. HST Fundos de má gestão em violação do Regulamento 4.20.
A seção 4.20 (a) dos regulamentos prevê que um CPO deve operar seu pool como uma entidade reconhecida como uma entidade legal separada da do operador da pool. A Seção 4.20 (b) do Regulamento prevê que todos os fundos, valores mobiliários ou outros bens recebidos por um CPO de um participante de pool existente ou potencial para a compra de um interesse em um pool que opera ou que ele pretende operar devem ser recebidos em o nome da piscina. A Seção 4.20 (c) do Regulamento prevê que nenhum CPO pode reunir a propriedade de qualquer grupo que opera ou que pretenda operar com a propriedade de qualquer outra pessoa.
O HST violou o Regulamento 4.20 (a) - (c) porque recebeu fundos de participantes do pool em nome do CPO, HST, e não em nome do pool, depositou os fundos em contas em nome do CPO e misturou a propriedade dos pools com outros fundos, incluindo os dos outros grupos, os fundos pessoais de Kim e os fundos da Kim e HST de outras atividades comerciais.
7. O HST falhou ao entregar o documento de divulgação exigido em violação dos regulamentos 4.21 e 4.31.
A Seção 4.21 do Regulamento exige que todos os CPO registrados ou requeridos sejam registrados para entregar aos potenciais participantes do pool um Documento de Divulgação contendo as informações estabelecidas na Seção 4.24 antes de solicitar participantes potenciais ou aceitar fundos dos participantes e obter confirmações de recebimento de o Documento de Divulgação anterior.
para aceitar fundos dos participantes da piscina. A Seção 4.31 do Regulamento exige que todos os CTA registrados ou requeridos sejam registrados para entregar aos clientes em potencial um Documento de Divulgação contendo as informações estabelecidas nas Seções 4.34 e 4.35 do Regulamento.
O HST não forneceu um Documento de Divulgação a todos os potenciais participantes do pool e clientes em potencial; e o Documento de Divulgação que alguns investidores receberam não continham a informação exigida pelas Seções 4.24, 4.34 e 4.35 do Regulamento. HST, portanto, violou as Seções 4.21 e 4.31 do Regulamento.
8. O HST Falhou ao Fazer Relatórios Periódicos aos Participantes em Violação da Seção 4n (4) da Lei e do Regulamento 4.22.
A Seção 4n (4) da Lei exige que todos os CPOs forneçam regularmente declarações de conta a cada participante do pool. As Seções 4.22 do Regulamento prevêem que cada CPO deve fornecer declarações anuais, trimestrais e / ou mensais a cada participante da pool. O HST violou a Seção 4n (4) da Lei e a Seção 4.22 dos Regulamentos ao não fornecer declarações periódicas de conta para os participantes da pool.
9. HST Falhou ao fazer e manter livros e registros em violação dos regulamentos 4.23 e 4.33.
A Seção 4.23 do Regulamento exige que todos os CPO registrados ou requeridos para ser registrados para fazer e manter determinados livros e registros sobre o agrupamento de commodities e os participantes. A Seção 4.33 do Regulamento exige que todos os CTA registrados ou requeridos sejam registrados para fazer e manter certos livros e registros relativos ao CTA e aos clientes e assinantes do CTA. O HST violou as Seções 4.23 e 4.33 do Regulamento ao não guardar os livros e registros necessários.
10. O parque é responsável por ajudar e abater a fraude do HST e Kim.
Para ser responsável como um auxiliar e instigador de acordo com a Seção 13 (a) da Lei, uma pessoa "deve se associar a um empreendimento ilegal de forma consciente, participando dele como algo que deseja trazer e buscar por suas ações para fazê-lo ter sucesso. " Em Re Commodities International Corp., [pasta de transferência atual] Comm. Fut. L. Rep. (CCH) ¶ 26.943 em 44.564 (CFTC 14 de janeiro de 1997); Em re Richardson Securities, Inc., [1980-1982 Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 21.145 em 24.646 (CFTC 27 de janeiro de 1981). Conhecer a conduta para fins de estabelecer ajuda e responsabilidade incontestável pode ser inferido dos fatos e circunstâncias da pessoa envolvente. Em re Lincolnwood Commodities, Inc., [1982-1984 Transfer Agent] Comm. Fut. L. Rep. (CCH) ¶ 21 986 (CFTC 31 de janeiro de 1984).
Park auxiliou e incentivou a fraude cometida pelo HST e Kim. Park sabia que o HST e Kim estavam fazendo falsas declarações sobre o sucesso do Programa HST e apresentando resultados comerciais hipotéticos como resultados comerciais reais, e ele sabia que o HST e Kim estavam garantindo que os investidores não perderiam mais de 20% do investimento. A Park sabia que o Documento de Divulgação e o Acordo sobre o HST continham as falsas declarações fraudulentas. Park também repetiu para alguns investidores que o Programa HST estava funcionando bem e que Kim tinha os recursos para cumprir sua garantia, quando, de fato, ele não tinha base para essas representações confirmatórias. Finalmente, apesar do conhecimento da Park de que Kim fez essas falsas declarações, a Park continuou recebendo comissões geradas pelas contas que o HST e Kim solicitaram fraudulentamente. Park é, portanto, responsável pela fraude cometida pelo HST e Kim nos termos da Seção 13 (a) da Lei. Ver Commodities International Corp., supra; Richardson, supra.
11. Kim é responsável como pessoa controladora do HST.
A seção 13 (b) da Lei impõe responsabilidade sobre "[uma] pessoa que, direta ou indiretamente, controle qualquer pessoa que tenha violado qualquer disposição" da Lei ou Regulamento. "Um propósito fundamental da Seção 13 (b) é permitir que a Comissão atinja a entidade comercial ao sujeito controlador e imponha a responsabilidade por violações da Lei diretamente sobre esse indivíduo, bem como sobre a própria entidade". Em re Glass, [Current Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 27.337 a 46.561-4 (CFTC 27 de abril de 1998); veja também o Re Apache Trading Corp., [1990-1992 Transfer Binder] Comm. Fut. L. Rep. (CCH) .25.251 em 38.794 (CFTC, 11 de março de 1992).
Controlling person liability attaches if a person possesses the ability to control the activities upon which the primary liability is predicated, even if that ability was not exercised. See Monieson v. CFTC , 996 F.2d 852, 859 (7th Cir. 1993). In addition, Section 13(b) of the Act requires that the controlling person "did not act in good faith or knowingly induced, directly or indirectly, the act or acts constituting the violation." All that is required to constitute "knowing inducement" under Section 13(b) of the Act is that the controlling person "had actual or constructive knowledge of the core activities that constitute the violation at issue and allowed them to continue." In re Spiegel , [1987-1990 Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 24,103 at 34,767 (CFTC Jan. 12, 1988).
Kim had the requisite power and control over HST. Kim was the President of HST and the sole person responsible for the day-to-day activities of HST. Kim also had actual knowledge of the fraudulent and violative conduct of HST. Kim (1) solicited investors on behalf of HST, making the misrepresentations about the trading program and the guarantee against losses; (2) prepared and disseminated the materials containing misrepresentations about the trading program; (3) prepared and filed the HST account opening documents; and (4) accepted and deposited funds for HST. Kim, as a controlling person, is responsible for HST's violations of Sections 4m(1) and 4n(4) of the Act and Sections 4.20, 4.21, 4.22, 4.23, 4.31 and 4.33 of the Regulations.
12. HST is Liable for Kim's Violations.
Section 2(a)(1)(A)(iii) of the Act provides that "the act, omission, or failure of any official, agent, or other person acting for any individual, association, partnership, corporation, or trust within the scope of his employment or office shall be deemed the act, omission, or failure of such individual, association, partnership, corporation, or trust, as well as of such official, agent, or other person."
Kim committed fraud while acting within the scope of his employment at HST. HST, therefore, is liable under Section 2(a)(1)(A)(iii) of the Act and Section 1.2 of the Regulations for Kim's violations of Sections 4b(a)(i) and (iii) and 4 o (1) of the Act and Section 4.41 of the Regulations.
OFFERS OF SETTLEMENT.
The Respondents have submitted Offers of Settlement in which each neither admits nor denies the findings in the Order. Subject to the foregoing, each of the Respondents: acknowledges service of this Order and admits the jurisdiction of the Commission with respect to the matters set forth in this Order; waives: (1) the service and filing of a complaint and notice of hearing; (2) a hearing and all post-hearing procedures; (3) judicial review by any court; (4) any objection to the staff's participation in the Commission's consideration of the Offers; (5) all claims which they may possess under the Equal Access to Justice Act, 5 U. S.C. § 504 (1994) and 28 U. S.C. § 2412 (1994), as amended by Pub. L. No. 104-121, §§ 231-32, 110 Stat. 862-63, and Part 148 of the Regulations, 17 C. F.R. §§ 148.1, et seq. , relating to or arising from this action; and (6) any claim of Double Jeopardy based upon the institution of this proceeding or the entry in this proceeding of any order imposing a civil monetary penalty or any other relief.
The Respondents stipulate that the record basis on which this Order is entered consists of the Order and the findings to which each has consented in the respective Offers, which are incorporated in this Order. The Respondents consent to the Commission's issuance of this Order, which makes findings as set forth herein, and orders that each of the Respondents (1) cease and desist from violating the provisions of the Act and the Regulations they are found to have violated; and (2) comply with their undertakings as set forth in the respective Offers and incorporated in this Order; and orders that Kim and HST shall be permanently prohibited from trading on or subject to the rules of any contract market; and orders that Kim (1) pay restitution in an amount of up to eighty-six thousand, four hundred and ninety-eight dollars ($86,498), plus pre-judgment interest thereon of up to fourteen thousand dollars ($14,000), pursuant to a ten-year payment plan ("payment plan"); and (2) pay a contingent civil monetary penalty in an amount of up to fifty thousand dollars ($50,000), also pursuant to the payment plan; and orders that Park (1) be prohibited from trading on or subject to the rules of any contract market for a period of six (6) months; (2) be suspended from registration as an associated person for a period of six (6) months; (3) pay restitution in an amount of up to thirty-five thousand dollars ($35,000), plus pre-judgment interest thereon of up to six thousand two hundred dollars ($6,200), pursuant to the payment plan; and (4) pay a contingent civil monetary penalty in an amount of up to thirty-five thousand dollars ($35,000), also pursuant to the payment plan.
FINDINGS OF VIOLATIONS.
Solely on the basis of the consents evidenced by the Offers, and prior to any adjudication on the merits, the Commission finds that Respondents Kim and HST violated, and Respondent Park aided and abetted violations of, Sections 4b(a)(i) and (iii) and 4 o (1) of the Act and Section 4.41(a) and (b) of the Regulations; and that Respondents Kim and HST violated Sections 4k, 4m(1), and 4n(4) of the Act and Sections 3.12, 4.20, 4.21, 4.22, 4.23, 4.31, and 4.33 of the Regulations.
Accordingly, IT IS HEREBY ORDERED THAT :
A. Kim, Park and HST shall cease and desist from violating Sections 4b(a)(i) and (iii) and 4 o (1) of the Act and Section 4.41(a) and (b) of the Regulations;
B. Kim and HST shall cease and desist from violating Sections 4k, 4m(1), and 4n(4) of the Act and Sections 3.12, 4.20, 4.21, 4.22, 4.23, 4.31, and 4.33 of the Regulations;
C. Kim and HST shall be permanently prohibited from trading on or subject to the rules of any contract market, and all contract markets are directed to refuse Kim and HST trading privileges thereon, beginning on the third Monday after the date of this Order;
D. Park shall be prohibited from trading on or subject to the rules of any contract market, and all contract markets are directed to refuse Park trading privileges thereon, for six (6) months beginning on the third Monday after the date of this Order;
E. Park is suspended from registration as an associated person for a period of six (6) months beginning on the third Monday after the date of this Order;
F. Kim shall pay restitution in an amount of up to eighty-six thousand, four hundred and ninety-eight dollars ($86,498), plus pre-judgment interest thereon of up to fourteen thousand dollars ($14,000), pursuant to a payment plan, as provided below, to those persons identified as investors and listed in Attachment A to the Offer. Those persons are (1) managed account clients of Kim and/or HST during the period October 1997 through March 1998; and (2) pool participants in the Match, Austin and JKP pools during the period October 1997 through March 1998. Kim shall make an annual payment to an account designated by a monitor designated by the Commission (the "Monitor") on or before July 31 of each calendar year (the "Annual Restitution Payment"), starting in calendar year 2001 and continuing for ten years 6 (or until full restitution is made, if that happens first). Such funds shall be distributed annually as restitution payments to those persons in Attachment A to the Offers, in the amounts calculated by the Monitor, unless, based upon the amount of funds available for distribution, the Monitor decides to defer distribution. If, at the end of the ten year payment period, any amount of the Annual Restitution Payments has not been distributed, that amount shall instead be paid and applied as a payment to the civil monetary penalty obligation, as provided in paragraph G below. Kim's restitution obligation shall be offset by any restitution payments made by Park and distributed to customers by the Monitor, pursuant to Paragraph H below, up to thirty-five thousand dollars ($35,000). In any event, Kim and Park together shall not pay total restitution of more than eighty-six thousand, four hundred and ninety-eight dollars ($86,498) plus pre-judgment interest;
G. Kim shall pay a contingent civil monetary penalty in an amount of up to fifty thousand dollars ($50,000) pursuant to the payment plan, commencing upon Kim's fulfillment of his restitution obligation as set forth in paragraph F above. Kim shall make an annual civil monetary penalty payment ("Annual CMP Payment") following Kim's satisfaction of his restitution obligation, and continuing until December 31, 2009 (or until the civil monetary penalty is paid in full, if that happens first). Kim shall make each such Annual CMP payment by electronic funds transfer, or by U. S. postal money order, certified check, bank cashier's check, or bank money order, made payable to the Commodity Futures Trading Commission, and sent to Dennese Posey, Division of Trading and Markets, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21 st Street, N. W., Washington, D. C. 20581, under cover of a letter that identifies Kim and the name and docket number of the proceeding; Kim shall simultaneously transmit a copy of the cover letter and the form of payment to the Monitor and to the Director, Division of Enforcement, Commodity Futures Trading Commission, at the following address: 1155 21st Street, NW, Washington, D. C. 20581;
H. Park shall pay restitution in an amount of up to thirty-five thousand dollars ($35,000), plus pre-judgment interest thereon of up to six thousand two hundred dollars ($6,200), pursuant to a payment plan, as provided below, to those persons identified as investors and listed in Attachment A to the Offers. Those persons are (1) managed account clients of Seungho Kim and/or Houston System trading during the period October 1997 through March 1998 and (2) pool participants of Seungho Kim and/or Houston System Trading (collectively "customers") during the period October 1997 through March 1998. Park shall make the Annual Restitution Payment to an account designated by the Monitor in the same manner as described in paragraph F above. Such funds shall be distributed annually as restitution payments to those persons in Attachment A to the Offers, in the amounts calculated by the Monitor, unless, based upon the amount of funds available for distribution, the Monitor decides to defer distribution. If, at the end of the ten year payment period, any of the Annual Restitution Payments have not been distributed, the Monitor shall either distribute the funds in the account or make a recommendation to the Commission that the funds instead be paid and applied as a payment to Park's civil monetary penalty obligation, as provided in paragraph I below. In the event that the Commission rejects the Monitor's recommendation, the funds shall be distributed as restitution;
I. Park shall pay a contingent civil monetary penalty in an amount of up to thirty-five thousand dollars ($35,000), pursuant to a payment plan, as provided below, commencing upon Park's fulfillment of his restitution obligation as set forth in paragraph H above. Park shall make an Annual CMP Payment following Park's satisfaction of his restitution obligation, and continuing until December 31, 2009 (or until the civil monetary penalty is paid in full, if that happens first). Park shall make each such Annual CMP payment in the same manner as described in paragraph G above. In accordance with Section 6(e)(2) of the Act, 7 U. S.C. § 9a(2) (1994), if Park fails to pay the full amount of his Annual CMP Payment within fifteen (15) days of the due date, he shall be automatically prohibited from trading on all contract markets and, if he is registered with the Commission, such registration shall be automatically suspended until he shows to the satisfaction of the Commission that payment of the full amount of the Annual CMP Payment with interest thereon to the date of payment has been made;
J. The amount of Kim's Annual Payment shall consist of a portion of (1) the adjusted gross income (as defined by the Internal Revenue Code) earned or received by Kim during the course of the preceding calendar year, plus (2) the adjusted gross income (as defined by the Internal Revenue Code) earned or received by HST during the course of the preceding calendar year, plus (3) all other net cash receipts, net cash entitlements or net proceeds of non-cash assets (collectively "Net Cash Receipts") received by Kim and/or HST during the course of the preceding calendar year.
The amount of Park's Annual Payment shall consist of a portion of (1) the adjusted gross income (as defined by the Internal Revenue Code) earned or received by Park during the course of the preceding calendar year, plus (2) all other net cash receipts, net cash entitlements or net proceeds of non-cash assets (collectively "Net Cash Receipts") received by Park during the course of the preceding calendar year.
The Annual Payment will be determined as follows:
K. In the event that Respondents do not make payments as directed in paragraphs F, G, H, I, and J, supra, the Commission may bring a proceeding or an action to enforce compliance with this Order and at its option may seek payment of the unpaid Annual Restitution and/or Annual CMP Payments, or immediate payment of the entire amount of restitution and civil monetary penalty required by paragraphs F, G, H and I, supra . The only issue that Respondents may raise in defense of such enforcement action is whether they have made the Annual Restitution and/or Annual CMP Payments as directed by the Monitor. Any action or proceeding brought by the Commission compelling payment of the Annual Restitution and/or Annual CMP Payments, due and owing pursuant to paragraphs F, G, H, I and J, above, or any portion thereof, or any acceptance by the Commission of partial payment of the Annual Restitution and/or Annual CMP Payments made by Respondents, shall not be deemed a waiver of Respondents' obligation to make further payments pursuant to the payment plans, or a waiver of the Commission's right to seek to compel payment of the remaining balance of the restitution and/or civil monetary penalty assessed against Respondents;
L. The Commission notes that an order requiring immediate payment of a civil monetary penalty and restitution against each of the Respondents would be appropriate in this case, but does not impose it based upon each Respondent's financial condition. Respondents acknowledge that the Commission's acceptance of the Offers is conditioned upon the accuracy and completeness of the sworn Financial Statements and other evidence they have provided regarding their financial condition. Respondents consent that if at any time following the entry of this Order, the Division obtains information indicating that any Respondent's representations concerning their financial condition were fraudulent, misleading, inaccurate, or incomplete in any material respect at the time they were made, the Division may, at any time following the entry of the Order, petition the Commission to: (1) reopen this matter to consider whether the Respondent provided accurate and complete financial information at the time such representations were made; (2) require immediate payment of the full amount of the restitution award and immediate payment of the full amount of the civil monetary penalty, required by paragraphs F, G, H, I and J; and (3) seek any additional remedies that the Commission would be authorized to impose in this proceeding if the Respondents' Offers had not been accepted. No other issues shall be considered in connection with this petition other than whether the financial information provided by the Respondent was fraudulent, misleading, inaccurate, or incomplete in any material respect, and whether any additional remedies should be imposed. The Respondents may not, by way of defense to any such petition, contest the validity of, or the findings in, the Order, assert that payment of a civil monetary penalty or restitution should not be ordered, or contest the amount of the civil monetary penalty or restitution to be paid. If in such proceeding, the Division petitions for, and the Commission orders, payment of less than the full amount of the restitution award or of the full amount of the civil monetary penalty, such petition shall not be deemed a waiver of the Respondents' obligation to pay the remaining balance of the restitution or civil monetary penalty assessed against Respondents, pursuant to the payment plans;
M. Park may be entitled to receive from the commodity trading advisor ("CTA") for which he is currently registered as an associated person ("AP") a portion of the fees, if any, which the CTA receives as a result of managing accounts solicited by Park during the period of time he has been registered as an AP of the CTA (trailing commissions"). The Commission will allow Park to receive such trailing commissions during the time that he is suspended from registration as an AP; and.
N. Each Respondent shall comply with his undertakings, as set forth in their respective Offers:
1. Respondents shall provide their sworn financial statement to the Monitor 7 on June 30 and December 31 of each calendar year, starting June 30, 2000, and continuing through and including December 31, 2009. The financial statement shall provide:
uma. a true and complete itemization of the respondent's rights, title and interest in (or claimed in) any asset, wherever, however and by whomever held;
b. an itemization, description and explanation of all transfers of assets with a value of $1,000 or more made by or on behalf of the respondent over the preceding six-month interval; e.
c. a detailed description of the source and amount of all of the respondent's income or earnings, however generated.
Kim shall also provide the Monitor with complete copies of the signed federal income tax returns for himself and HST, and Park shall also provide the Monitor with complete copies of his signed federal income tax returns, including all schedules and attachments thereto (e. g., IRS Forms W-2) and Forms 1099, as well as any filings they are required to submit to any state tax or revenue authority, on or before June 30 of each calendar year, or as soon thereafter, beginning in 2001 and ending in 2018. If any respondent moves his residence or business at any time, he shall provide written notice of his new address to the Monitor and the Commission within ten (10) days thereof;
2. Respondents shall cooperate fully and expeditiously with the Monitor and the Commission in carrying out all aspects of their Annual Restitution and Annual CMP Payments. Respondents shall cooperate fully with the Monitor and the Commission in explaining their financial income and earnings, status of assets, financial statements, asset transfers, tax returns, and shall provide any information concerning themselves as may be required by the Commission. Furthermore, Respondents shall provide such additional information and documents with respect thereto as may be requested by the Monitor or the Commission;
3. Respondents shall not transfer or cause others to transfer funds or other property to the custody, possession, or control of any member of their respective families or any other person for the purpose of concealing such funds or property from the Monitor or the Commission;
4. Kim and HST shall never apply for registration or seek exemption from registration with the Commission in any capacity, and shall never engage in any activity requiring such registration or exemption from registration, or act as a principal, agent, officer or employee of any person registered, exempted from registration or required to be registered with the Commission; this includes, but is not limited to soliciting, accepting or receiving any funds, revenue, or other property from any person, giving advice for compensation, or soliciting prospective customers, related to the purchase or sale of any commodity futures or options on commodity futures contracts;
5. Park shall not apply for registration or seek exemption from registration with the Commission in any capacity, and shall not engage in any activity requiring such registration or exemption from registration, or act as a principal, agent, officer or employee of any person registered, exempted from registration or required to be registered with the Commission for six months, beginning on the date of this Order; this includes, but is not limited to soliciting, accepting or receiving any funds, revenue, or other property from any person, giving advice for compensation, or soliciting prospective customers, related to the purchase or sale of any commodity futures or options on commodity futures contracts;
6. Park shall not, for five years beginning on the date of this Order:
uma. directly or indirectly act in as a principal, partner, officer, or branch office manager of any entity registered or required to be registered with the Commission; e.
b. directly or indirectly act in any supervisory capacity over anyone registered or required to be registered with the Commission; e.
7. None of the Respondents, nor any of their agents or employees under their authority or control, shall take any action or make any public statements denying, directly or indirectly, any finding in this Order, or creating, or tending to create, the impression that this Order is without a factual basis; provided, however, that nothing in this provision shall affect each Respondent's (i) testimonial obligations; or (ii) right to take legal positions in other proceedings to which the Commission is not a party.
The provisions of this Order shall be effective on this date.
Commodity Futures Trading Commission.
1 Respondents do not consent to the use of the Offers or this Order, or the findings to which they have consented in the Offers, as the sole basis for any other proceeding brought by the Commission other than a proceeding brought to enforce the terms of this Order. They do not consent to the use of the Offers or this Order, or the findings to which they have consented in their Offers, by any other person or entity in this or any other proceeding. The findings to which they have consented in the Offers, as contained in this Order, are not binding on any other person or entity named as a respondent or defendant in this or in any other proceeding.
2 Due to the failure of HST and Kim to maintain proper books and records, the number of participants in the JKP pool is unknown.
3 HST and Kim represented in the account opening documents that they provided to the first FCM that the funds in HST's account belonged to HST and were not customer funds. When the HST account was transferred to a second FCM, HST and Kim represented that HST was exempt from CPO registration. Both of these representations were false - - the funds in the HST trading accounts contained customer funds, and HST never filed for, nor did it qualify for, a CPO registration exemption.
4 Kim signed a CTA exemption letter with an FCM, representing that he was exempt from registration as a CTA under Section 4m of the Act, claiming that he had not furnished trading advice to more than 15 persons and had not held himself out as a CTA. The representation is false, however, as HST and Kim held HST out as a CTA by soliciting investors for the HST pools and HST managed accounts using flyers, seminars, a newspaper article, the Agreement and Disclosure Document.
5 Commission Regulations 4.25 and 4.35 require that all actual past performance disclosures be preceded with the statement, prominently displayed, "past performance is not necessarily indicative of future results."
6 The ten year restitution period shall run from January 1, 2000 through December 31, 2009. Restitution payments for a calendar year shall take place by July 31 of the following year. Therefore, the final restitution payment for the year 2009 will occur on or before July 31, 2018.
7 Kim and Park agree that the National Futures Association is hereby designated as the Monitor for a period of eleven years commencing January 1, 2000. Notice to the Monitor shall be made to Daniel A. Driscoll, Esq., Vice President, Compliance, or his successor, at the following address: National Futures Association, 200 West Madison Street, Chicago, IL 60606. For ten years, based on the information contained in Kim's and Park's sworn financial statements, tax returns and the other financial statements and records provided to the Monitor, the Monitor shall calculate the total amount of restitution or civil monetary penalty to be paid by Kim and Park for the year and the specific amounts payable to each person listed in Attachment A. On or before June 30 of each year and starting in calendar year 2001, the Monitor shall also send written notice to Kim and Park with instructions to pay no later than July 31 of that year the amount of restitution to an account designated by the Monitor, or, if Kim's and/or Park's restitution obligation has been satisfied, the amount of civil monetary penalty to be paid in accordance with the payment instructions provided in paragraph J above.

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How to Make (and Lose) $2,000,000 Day Trading: The System & The Story.
I’ve tried and failed to write this article ten times.
Even after I finished, I thought it was terrible–actually I was just scared to share the story. I sent it to a reader who had asked me about trading. He replied:
& # 8220; It’s different than most that I have read because there is no bullshit to try and look past and all of your readers appreciate that.”
Thanks Garrett, here goes nothing:
A Kind of Introduction To Day Trading.
This is about the lessons I learned while trading. The pitfalls people fall into and the ways people destroy themselves. There’s also the time I raised money for a hedge fund. Then my partner turned $30,000 into $2,000,000 in three months. It only took him two months to turn $2,000,000 into virtually zero.
We’ll get into the details later.
I mean trader as in “day trader”. From the time I was 15-22 I sat in front of 6 computer monitors watching charts go up and down. Why am I not doing it now? I didn’t make the billion dollars before hitting 22.
Traders are unique in that they might be the only group of people more delusional than entrepreneurs.
I say this lovingly.
According to my calculations, there’s no reason I couldn’t have made a billion dollars day trading. Never mind that 99.9% of traders are losers. Forget the fact that 80% of traders are depressed middle-aged men going through their mid-life crisis. (I saw one in the local library yesterday, he looked like he was avoiding his wife. I saw another today at Starbucks, he didn’t buy a drink and he smelled funny.)
I was the exception. I was going to get my billion-dollar pay day before my 30 th birthday.
And I actually was the exception. I made a nice chunk of money before stopping. I treated the thing with respect—not some get-rich scheme.
It breaks my heart when I see people tell me they day trade and then see them following some bullshit newsletter or some coach with a fudged track record. When I see someone watching another FOREX algorithm sales pitch or drooling over some penny-stock report I just want to shake them and say You have potential! Stop letting yourself get scammed! Stop scamming yourself!
If you trade without the proper preparation you’d be better off in Vegas. This is not an exaggeration. Not only are there free drinks, sexy ladies looking for fun, and an obscene selection of Cirque du Soleil shows… your odds at pretty much any casino table are better than the markets . I mean this literally (like “literally” as defined by a dictionary)— you are guaranteed to lose money over any decent period of time unless you learn to trade well.
And then even once you’re prepared and you feel you know everything there is to know about the markets, you’re still not guaranteed to win. That’s just the nature of the beast.
That’s why I started meditating at 16. Trading is intense. In college I would make $5000 in the middle of class and then lose $10,000 a few hours later while watching a movie.
That kind of thing gives you a different perspective on money.
One last thing before we get into the meat of the post: Like Garrett said, this is probably different than anything else you’ve read on trading. Por quê?
I don’t want to sell you anything. I don’t give a shit if you trade or not. Actually, I would almost rather you not trade… most people would be better off spending their life doing other things. I’m not currently trading. I’ve double-checked my methods and they still work, so the information is current, I’m just not spending my life using it. The focus isn’t on the method—although I’ll give you all the dirty details. You’ve got to be fluid as a trader. The top hedge funds in the world hire mathematicians, physicists, meteorologists… they are constantly shifting algorithms. How do you compete with these people? You don’t. This will make more sense later. I don’t have any stake in you listening to me. For real: nothing is for sale. I’m not going to teach you to trade. People that teach people how to trade or run newsletters giving trading ideas make more money by selling their ideas than using their ideas. They all have their own stories about why they are being so generous with their SECRET knowledge but it’s bull. (Not that all this information is bad, it’s just that you got to be careful—don’t follow anyone blindly.) (Wait, so what are my incentives for writing this? I just want you to like me—I want you to like me and this article so much that you subscribe for our newsletter and I can write more things. Also, I’ve been thinking about writing this for way too long and I had to do it.) I’m not trying to convince you the world is ending.
Okay okay it’s time for the meat and potatoes.
Meat and potatoes? Ha! You’ll be eating liquid gold with the information I’m about to give you! Yes, you too can be a Rich Kid of Instagram!
Just kidding, you probably won’t do anything with it. (And that’s probably a good thing.)
Someone did make $2,000,000 with this information though. For real, I watched it happen.
Before we get to that story, we’re going to go through some of the major pitfalls new (and experienced) traders fall into.
[Note: I’ve provided the meanings of some words but I’m going to leave the glossary work to you, Google, and other places on the Internet that like defining words more than I do.]
What Not To Do.
Why start with what not to do? Because not smoking cigarettes is more healthy than eating all organic. Because if you lose all your money then trading becomes kind of impossible, doesn’t it?
“You can do a lot by avoiding bad as opposed to seeking good.” – Paul Graham, founder of Y-Combinator.
DO NOT: Use Real Money Before You Know What The Hell You’re Doing.
Warren Buffett’s #1 rule in investing is to keep your capital. He says that his regrets have mostly been acts of omission instead of commission. That is because he doesn’t throw money at something that he doesn’t think will work—and so he misses out on making money on tech bubbles but doesn’t lose his ass when they bust. (Honestly, Warren Buffett isn’t a trader… he plays the long term and hasn’t done anything but acquire massive companies—or huge pieces of them–for decades… he is one of the world’s best money-getters but not someone who will give you anything useful in trading.)
O que isso significa para você? Paper trade before you put any of your capital on the line. (Paper trading is when you make trades with a fake account. There are tons of platforms you can use for this, I used TD Ameritrade’s Think or Swim.)
How do you know when to start putting money on the line? When a system has proven itself.
When has a proven system proven itself? For me, a month of profitable trading (and a statistically significant number of trades).
This infers the next DO NOT:
DO NOT: Day Trade Without A System/Method.
If you’re trading willy-nilly you’re going to lose.
I don’t even know exactly what willy-nilly means, but if you have to ask if your trading would fall under the “willy-nilly” category, then stop trading right f*&#ing now!
You’re not George Soros, you don’t get to trade on your gut.
You don’t need an algorithm running on a supercomputer—but you do need some sort of system that won’t let you be an idiot.
You will tell yourself you don’t need a defense against being an idiot. This is you being delusional. Believe me. I betrayed myself too many times before committing to my systems. You don’t win every time if you follow your methods but you do do a hell of a lot better.
How Do I Create A System?
So what makes a good system? We’ll get into this more later when I show you the exact system I used (don’t skip to it, this post will be useless if you do that). For now, this will be helpful when thinking about how to approach your trading:
Offense . It tells you exactly when and how to enter a trade. Maybe it’s “3 of the 5 requirements must be met to invest 1 share, if 5 of 5 are met – 2 shares”. This is one line of emotional defense: trading will make you think that you can make a million dollars today, this is very exciting, you will want to fudge the rules. Warren Buffett only broke his rules when he got bored—notice when you’re bored. If you think you can take advantage of more opportunities in the market then alter your system, test it, and implement it. Remember: no willy-nilly! Defense . It tells you exactly how to exit a trade. This means stop losses. (These are orders that automatically get you out of a trade when the market you’re in hits a certain price.) A common rule is to take 50% of your position (your money in the market) at a certain profit point, maybe 100% maybe 68.2% (this is a Fibonacci number that is extremely popular among traders). It also defines exactly how much of a loss you are willing to take on a certain trade. This must be determined before you enter a trade. If you don’t put a stop loss in your brain will justify your position over and over to you while your hopeful trade ends up losing you your house (and family). This is even more important than a strong offense — don’t go broke! Adicionando a uma posição. Sometimes you may want to make your position bigger as the market moves in your favor. You need to have a set of rules determining how you’ll do that. Don’t complicate it. Every tool seems so powerful, so prophetic! Early on I had a habit of adding signals that I would wrap up into my system. I theory they should make your trading better. Maybe it does for a Harvard physicist, it didn’t for me. The more complex I made my system the worse I did, over and over. I would start simple, screw it up by adding a bunch of things people recommended, then go back to the drawing board. The best method I ever used was dead-simple (that’s the one we’ll get to in a little bit). Give yourself a ton of room for failure. Eight out of ten trades failed for me. That was fine because when I hit a winner it won big. But if you’re averaging eight out of ten trades failing, then it will be common to fail 20 times in a row. I’ve gone through streaks of 40 failed trades in a row. You’ve got to be able to survive those. My recommendation would be to risk 1% (or less) of the money you’re willing to lose on each trade. That gives you 100 chances for failed trades before you go bust. It shouldn’t happen. (Of course, when I was twenty I was risking 10% on some trades… if I went bust it wasn’t that big of a deal.) It has to work. Again, test the damn thing. If it doesn’t make fake money then it certainly won’t make real money.
There is a time and place for throwing caution to the wind and just going for it. Trading is the worst place for that kind of bullshit. The adrenaline that comes from the potential of losing thousands of dollars in a minute is enough—you’re mission is to keep a cool head.
DO NOT: Get Big Fast.
If you do this right, you have the potential for making a lot of money faster than any other method out there. (Excluding entrepreneurs who are insanely talented and simultaneously insanely lucky.) The potential — chances are it won’t go that way.
Chances are you’ll lose money.
Or you’ll make money, feel like a god, trade like a god, and lose all your money.
When you put real money on the line the game completely changes again.
You think you’ve tested your method. You’ve gone the first month and everything looks solid. Ótimo.
Then you put money on the line. Shit gets real. You can’t seem to follow the system like you did in the test month. The market seems totally foreign again.
You don’t believe me, that’s fine. For you it’s different.
I don’t know how many times I told myself that. I’m different.
It doesn’t matter though, you’ll feel it the same as I did.
To save yourself some money though, trust me, start small.
DO NOT: Trade When You’re Emotional.
I told you I started meditating at 16. It’s not because I was excited about being “in the moment” or that I was into Eastern philosophy. It was because if I didn’t I couldn’t trade. I’d mess it up.
James Altucher talks about how he created algorithms for each of his methods and then let them trade for him while he was depressed an losing everything. I wasn’t smart enough for this (and my methods inevitably had some level of subjectivity to them) and so I manually entered all my trades. (Entering a trade or “putting on a trade” or “entering a position” just means you’re buying (or selling short) into a market.)
James got to trade emotionally because he wasn’t actually trading.
If I got emotional then I would get silly.
You’ve got a system so this shouldn’t matter. But it so matters.
Imagine this: You’ve just gone long the corn futures market for 2 contracts. You’re up $5000 on a trade in two hours. Awesome, right? Hell no!
This is what happens in the two sides (side 1 and side 2) of your brain:
1. I want to take this $5000 off the table now, that’s a great win.
2. Yeah, but look at this pattern—this could be the BIG trade—this could be $100,000 if I add contracts.
1. Yeah, but it’s more important to conserve capital. $5,000 is a great win. Maybe I could just take half off the table.
2. Don’t blow it. That’s $50,000 instead…
1. Fuck. The system says to sell now.
2. Yeah, but the system isn’t perfect. You made it anyway—you can change it. You can feel it!
1. Yeah. But, the system…
And then on and on. I said “imagine” but that exact inner-dialogue is something I went through twenty times a day every day for a long time.
When did I make the right choice? (The right choice being following the system, not making money. A lot of people make money with a shitty trade and then think they have some special talent… of course they go bust within the quarter.)
I made the right choice when I let reason reign.
When did I make the wrong choice?
When I was either excited or scared. Both fear and greed will destroy you. (Immediate greed that overtakes your rational decision—which has longer term greed in mind.)
I’ve said this earlier, but it’s important to repeat:
A. Some days you will feel like a worthless human being who has done and never will do anything worthwhile. You will enter trades you aren’t supposed to because you’re afraid of missing out. You will exit trades before you should because your stomach is weak.
B. The next day you will make a winning trade and feel like a god. You will forget whatever it felt like to lose and you will make trades outside of your method. You will enter trades you shouldn’t because you have the feeling that you can’t do wrong (the market may validate you for a couple days and make the problem worse). You will stay in trades too long because you “know” that the market will turn in your favor—no way could you be wrong!
Your trading decisions need to come from numbers and predetermined rules. After years of deliberate practice and success you may actually get an intuitive feel for the market. Then begin introducing those feelings into your systems. Before then, no way José.
DO NOT: Trade Based on Some Purchased System or Newsletter.
Listen, if someone has a really kickass way to make money trading they sell it to a hedge fund or use it themselves. They don’t sell it to you for five easy payments of $300.
That being said, there are some decent newsletters out there. The James Dines letter being one of them. It may be worth signing up for a couple, but don’t rely solely on them. Experiment with their information. Test their ideas against your method.
Do not follow them blindly.
Think about the incentives at work… there is nothing in your favor.
(This means, by the way, don’t follow the method below without testing it first. Just so you know–if I were actively trading it right now I probably wouldn’t have shared it.)
DO NOT: Get Caught Up In Stories.
if you see this image – RUN!
Your system either works or it doesn’t.
People will devise elaborate narratives around their ideas they want you to buy into. They will spend countless hours telling you about this thing and why it’s the next took to make you a millionaire.
They will scare you by telling you you’re going to miss out on the next big thing. They will tell you that you need them.
You don’t. You need a system that works. Incorporate their idea into your system if you believe in it, see if it actually works. If it doesn’t, take it out.
DO NOT: Trade.
This isn’t a joke. Most people shouldn’t trade. If you’re not willing to give everything to the market then it’s not worth messing with. Do what Warren Buffett says and put your money in the Vanguard S&P 500 index fund and go about your life. (Or invest in your own business.)
Of course, as terrible as trading is, it’s also freaking awesome for the right people. To this day I get a warm fuzzy feeling when I see a price chart. I’m not joking. I feel at home and I see patterns and I get the urge to dive in… Maybe I will again. Quem sabe.
For real: you should only trade if you are extremely drawn to it and if you can behave rationally (while remaining delusional).
Alright. here it is:
O método.
I was on break before going into my junior year of college. I was trading, doing pretty well. I was having a particularly good morning when I received a picture message on my phone. It was a screenshot of my partner’s trading account.
A couple weeks prior I received one that said $250,000. He had started with $30,000 only a few weeks before. I was freaking amazed.
This particular day, though, I didn’t believe it was real. The image read: $2,000,000 (and change, whatever). That was a “holy moly” moment, to say the least. I stared at it for a long time.
I texted back, “This isn’t real.”
How did that happen?
How did he turn $30,000 into $2,000,000 in three months?
Well, the method below.
But also! (And this is a massively important “but”.)
He was more balls to the wall than I’d seen anyone ever before. Every bit of profit was immediately thrown back into the trade so his position ballooned like crazy. I actually used the term “stapled to the wall”. He was insanely lucky. See that lumber futures price chart below? You see that massive move down? Yeah, he got that at the top and rode it straight to the bottom. (He had a short position—meaning he made money as the price dropped.) He does have mental powers.
THAT is a move! ne.
This combination ended up with massive losses in the next couple months. He still ended with an awesome five-month return… but you were a millionaire for a month and then not… well, it hurts.
I used this method with my balls about a foot off the wall and made great returns. I nearly doubled my personal account in six months and then was able to raise money from investors with that track record.
[Note: This method is specifically useful for commodity futures but can be applied more widely with certain modifications.]
Here is what we looked for:
1. Multi-Year High or Low.
This method required constant awareness of price movements but not a lot of action. With this method you probably won’t be making more than two trades a week—often you’ll make one every other week. It’s also a bit unique in that we are trying to spot tops and bottoms of markets, something that most people will tell you is suicide: “like catching a falling knife”.
I just looked up the Corn Futures price chart at barcharts and found it sitting right at a multi-year low.
This is a weekly chart (each bar represents one week) so we can see that we’ve missed the bottom last week. We can zoom in to see if that would have presented us an opportunity.
The first is the simplest, this is the first filter I use to sort through charts: is it at multiyear high or low? You can see this quickly and skip it if the answer is no. If it is then go in for a closer look.
(I will keep tabs on a bunch of charts sitting at these areas while I wait for the other requirements to be filled.)
2. Hammer, Morning Doji Star, or Abandoned Baby Candlestick.
[Note: I’m not going to get too technical here–just what you need to have a basic understanding and get started. I recommend you read everything at StockCharts’s Stock School if you have any sort of commitment to this. Candlesticks are just another way to view pricing information on a chart. An empty/white bar means that the price closed higher than it begun for the period of time measured by the bar. A red is the opposite, the bottom of the red bar is the closing price. The skinny area is the full area covered by price movement during the period covered by the bar.]
The second thing I would look for is a daily Morning Doji Star or Hammer Candlestick.
A Hammer Candlestick:
A Morning Doji Star:
Here is an Abandoned Baby:
Keep in mind we want these patterns at a multiyear high or low. Preferably with a gap. That means, for the corn chart above, we would want the price to open below where it’s current.
The gap shows one last push up. The two candlestick show consolidation of price movements. Basically, the price wasn’t able to follow through– signaling that this movement is out of gas.
Now, if you don’t see one of these right away, don’t discount it totally. Check for the third requirement.
3. The Producers Are On Your Side.
General Mills buys a metric shitton of wheat. They move that market big time. It would be nice to know what companies like General Mills are doing so we could be on their side, right?
Sim. And we can. And it’s pretty awesome.
Now, General Mills and other large producers use futures markets to hedge price fluctuations more often than trading for a profit like us. So we don’t take them with a grain of salt unless they are making significant movement.
Companies that trade over a certain amount of contracts are required to report the trades they make. These are collected in reports called Commitment of Trader Reports. You can get these reports here. You can get them in a more useful form (a chart) here.
Let’s see an example. I just looked up a promising chart of Soy Bean Futures:
We can see a great multiyear low (which is more obvious in the weekly chart, note that this is a daily) and some consolidation. Okay, let’s see what the producers are doing–this information is available to us in the red line in the mini-chart below the main one.
We can see here (and on here-just CTRL+F “soy” and you’ll see it) that producers (the RED line) are still significantly short soybeans and they aren’t in any rush to get long (“get long” means to buy).
Because of this I’m not going to make a trade but I am going to keep an eye on this over the next few weeks to see if a cleaner setup emerges. (A setup basically means the boxes for your method are checked off.)
We want to see the producers make a significant move in the direction of our potential trade. Here I would want to see a large movement toward zero.
[This is a fascinating topic. Check out Trade Stocks and Commodities with the Insiders: Secrets of the COT Report, it’s freaking amazing. And if the $40 price tag looks too high, seriously reconsider trading as an option.]
4. (Optional: For the insane ones) Balls-to-the-Wall-Re-Buy.
My partner was able to make such insane returns because he caught a great run and leveraged it to the hilt. He put on a huge position and then used all the profits from each movement to make his position even bigger. That means you’ve got to hit a home run.
I honestly can’t recommend anyone do that. This method alone demands more risk than most (even though you can use mini contracts to take smaller positions). I played more conservatively and did well. When I trade again, I’ll trade even more conservatively. Capital is the first requirement for trading–without it you’re out of the game.
5. Stop-Loss.
You need to set a stop-loss immediately after entering your position. I would give different markets different leeway depending on how widely they fluctuated normally.
Corn might fluctuate 10 points daily on average while Crude Oil might fluctuate 20. I would give Oil more wiggle room ( not willy-nilly, mind you!)
The most important thing is that you set a stop loss with a loss that you can manage. It doesn’t matter how perfect a setup might appear, it could still lose money. You need to be prepared to take losers.
Ideally your stop loss is below the previous low. Sometimes you won’t be able to catch it that close, but if you can you’re golden. (You trade seeing more of a movement for taking on less risk.)
6. Managing the Trade.
Let’s say we get long Soy Beans. We’ve got our stop-loss right under the previous low.
Version #1: The market moves against us and takes out our stop (this means the stop-loss is hit and we are taken out of the trade, we are “flat”). This is the most common scenario.
Version #2: This is the more interesting version–the market moves in our favor! Yeehaw! We’re not out of the woods yet though.
Obviously we would love the market to take off in the direction of our trade and lead us to our fortune. If this happens then count your blessings and remember the feeling–because it won’t come often.
Even when we get a winning trade, we have to work with it. It will go up a while and then back down, then up and then down.
When we talk about “managing a trade” we are really talking about three things:
1. Adding to the position. We talked about this a little earlier. Essentially you can add to a position that’s working to double down. Say you get a strong movement in your favor, then it pulls back a bit to consolidate, you can add to your position to double-down on the move.
**2. Adjusting our stop-loss. This is the one you will use most often (as in every winning trade). I like to move my stop-loss to my entry price as soon as possible. This means that if that market moves against you then you still don’t lose any money. I will normally wait until there is a new solid level of “support” created and then move the stop loss up to this new level. A support level is a price at which there is resistance to the market moving below. This is usually created by a small pullback. Continue to adjust your stop losses as the market moves in your favor.
3. Reducing our position (taking money off the table). I alternated between taking 50% of my trade off the table when I had 100% and never reducing a trade unless I got out completely. Often taking 50% or 30% at a certain point is a good way to lock in trades, the only problem is that it limits your upsides.
4. Exiting. At certain reversal patterns I would exit a trade and not wait for it to hit a stop-loss.
how we used to trade.
Scary simple, right? (There are a few minor things omitted just for the sake of simplicity… these items decided most of the decisions.)
You probably noticed that I didn’t give you any examples of perfect patterns (if you go back and look at a more magnified version of the lumber one you’ll see a perfect setup). That’s because it takes a massive amount of work to find a great trade. I may have to look through 200 more charts before finding a decent setup.
If you’re really interested in this, go to BarCharts (or download a trading platform, I like thinkTDA) and look through every single commodity futures chart you can find. Look at a 5 year chart, then if one looks promising look at a 1 year chart, then a 6 month.
Keep a list of ones that look promising that you need to keep an eye on. Review these every day. Once a week review ALL the commodities again. When you find a good trade, make it on paper. Either literally with paper or with your program (again thinkTDA is awesome… I don’t even have an affiliate link for them, they’re not sponsoring this post… but now I kind of think they should :P). When you start to get good at it, dip a toe in with real money.
That’s 4 steps and a ton of time.
I was going to recommend more books for you to read but I’m not. If you want them in the comments I’ll offer some up but the important thing is for you to actually apply this knowledge first. Go and spend an hour looking at charts right now.
This post ended up being fairly long… but the topic is huge . I glossed over a lot of technical stuff on purpose. The goal here was to give you an idea of what it is to be a trader and an example of a method to begin using.
I’m happy to answer any questions you’ve got! Just put them in the comments below or email me.
Thanks for taking the time to read this! Let me know what you think – the good, the bad, the ugly – in the comments below.
can i apply the same method on currency trading?…and which time charts is more suitable for this methods….
Do you think those techniques could be adapted to cryptocurrencies or that crypto is too volatile? Most coins don’t have multiyear charts because they haven’t been here for that long. What is your stance on that matter?
with the help of a recovery expert i was able to recover my money from IQoptions.
I recently recovered my initial investment from a scam broker. I had to resort to unconventional means to make this happen. I am open to share my experience. Feel free to reach out.
i suffered so much from this and lost over 200k so far and still now learning on my own and have not made a penny back rather i still lose.
i feel it si door close to even regain what i have lost and i have 4 kids and old is becoming my middle name any suggestion.
I have been scammed and scammed and scammed again. I invested with four binary companies and lost all of my investments totalling 290,000GBP. Then I was contacted by someone offering help – a company who specializes in binary recovery. Fui enganado por eles novamente. By the end of it all I had lost all of my savings and I was in serious debt. Eu estava desesperado por ajuda e isso me deixou vulnerável a golpes de recuperação. My husband is not around anymore and I have an 8 year old son with learning difficulties. A pressão de ser uma mãe única e trabalhadora com uma criança que precisa de muita atenção e apoio adicional tornou-se enorme para mim. I also felt too traumatized to trust anyone else and I was very afraid, but I had no choice other than to trust Geminihacks(dot)(com) They have been incredibly helpful and supportive and also very understanding about all of my fear and concerns they helped recover all of my funds back within a week using unethical means I feel quite , tremendously joyous about the decision to use Geminihacks (dot) (com). I really hope that others do not have to go through what I did, and I wish that I had realized before things were so bad that I was being scammed. Espero que a minha história possa ajudar os outros a não se deixar enganar do jeito que eu era.
Very solid article!
I use the COT reports quite often, and it is a helpful tool.
Sadly, not a lot of traders take it seriously. It is understandable, not a lot of traders are long-term speculators; everybody loves to day-trade, and for them it is useless. Again, Kudos on the article.
What about algos administered by the market maker of your broker’s affiliate company that trade against your trades. No mention of that here or how to avoid them. Probably because there is not and that is why none of you ended up making money in the end.
Hello, great honest article, and your absolutely correct about putting the time in. I’m thankful to be single with no kids. I had to disconnect my phone and stay off of social media just so I can put 8 to 10 hours a day studying..I wanted to ask you if you ever applied a similar method for Forex Trading? Obrigado.
Hi thanks for a well thought trading rules to go by! I’ve been trading stocks and now more into options and have doubled my money in 4 months. Like you said, having a set of rules are important and sticking to them until the end. It is harder to do because we’re emotionally driven all the time. Keep the fire going. Thanks for your time!
YLAN, are you day trading options or intermediate swing or longer term options or hedging them?
Good, solid advice. I’ve been trading oil futures for several years and your post is spot on. Muito útil. Obrigado por tomar o tempo. Sticking to a basic plan that works and not getting emotional is a must. Irrational exuberance over “wins” or depression over losses will only lose you money.
I’ve had a rough go. I’d love to learn how to trade. Read your article…alot of good information. I wished I could just give you my money and close my eyes and hope you make some kind of magic when my eyes open.
Hi l am john collinus nice to meet you I hope this message will not bother you i will like to tell you about the network company bank I work for the network company will help to make an eazy transfer of money on line to company business office family friend and differed country in the world all so will help to save money in hour network company money deposit savings account for secret save and for purpose use this business have be going on for long time now an will have help so much people from differed country and day are happy about it are you in interested to make an eazy payment by transfer money on line or you want to save money in hour network company money deposit savings account for secret save and for purpose use if you are interested to no more about this business you can create on face-book money-line twitter by john collinus or send a message to this email [email protected] nice meeting you.
Kye do you know any broker that can give you startup funds for trading if you want to start but no funding please.
Falando de boas estratégias, acredito que não é mais novidade que o Sr. Bailey & # 8217; s tenha a melhor estratégia hoje, com mais de 200 estudantes fazendo $ 10.000 + semanalmente. Minha vida nunca foi melhor. Esta é a minha terceira semana e você não tem idéia de quão rico eu sou e como minha esposa e meus filhos estão todos felizes agora. entre em contato com ele para obter ajuda para homens reais que gostam de fazer negócios via baileyaart1199 no google mail.

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