Court Case:Trader Tries Trading Millions on Demo Acct, Does it on REAL Account Instead. Can he Keep $$$ Gains?

Here’s a situation that’s hard to believe- a trader opens up a trading account in France with $23,000 and wants to practice using the brokerages demo account that he had been using to learn on.

So he engages in trading, but due to some crazy errors, he winds up trading on a live account and by the time he realizes he is NOT in the demo account, he is $1 million dollars in the hole. 😬

Now this is pretty crazy stuff, since I have NEVER heard of ANY brokerage that would allow a person with just $23,000 in their account to be allowed to trade in the BILLIONS and incur so much debt- likely because they would soon be out of business with those type of lax safeguards.

Now once he finds out, you’d think he’d immediately call the brokerage and tell them the situation and that he wants no part of this…..and you’d be wrong.

Instead, he decides to continue trading and we get to some more crazy stuff happening: he actually does extremely well and winds up making $11.6 million in profit! 💰💰💰

Once the brokerage learns about what happened, they decided to keep the money since the trader was supposed to be on a demo account. 💸 The trader is now taking the brokerage to court claiming that the money he made should be rightfully his to keep.

So the question to consider is- who has the best claim to the money, the brokerage or the trader? What do you think?

I would reason it out as follows:

While on the surface it one could make a case that since he was trading, he should be able to keep it. But further analysis finds problems with this.

If he had lost millions, would he also claim the responsibility to pay it back, or would he claim he was free of liability because he believed he was on the demo account? The knife cuts both ways.

The key though is his account size. At only $23,000, it would be clear to all that he does not have the equity to be allowed to trade in the millions for a real account and therefore the brokerage should be on the hook for those losses. This also means they get to keep the gains as well.

Now having said that, I have these conclusions:

  1. Clearly this guy was either very lucky or knows what he’s doing and should be offered a trading job.
  2. Since it was the fault of the brokerage for allowing him to trade such large amounts on a real account, and he did earn them a nice amount, it would be nice if they gave him some type of payout since he could have also bankrupted them.

Here’s the article:

https://www.cnbc.com/2018/06/21/trader-builds-5-billion-position-after-realizing-it-wasnt-a-demo.html

 

 

 

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Heat Wave Bullseye Hits Southern California

I’ve been watching heat waves make their way across the US- from the Midwest, then northeast/east coast areas.  I feared it was only a matter of time before the flame lottery lot went to the Southwest/west coast. The news folks forecast confirmed the impending heatwave for the west to arrive after the 4th of July into the weekend.

Despite that forecast, it was hard to believe since the weather in San Diego earlier this week was near perfect, as it usually is with warm days and cool nights. The weather folks get rain forecasts wrong often, perhaps they were erring here as well?

Unfortunately, they were in the correct zone as we hit later in the week, literally just a day after the nice temps on the 4th, the temp starting jumping rapidly from the 70’s to the mid/upper 80’s. Then on Friday this happened:

 

Heat Miser and his Scorch Troops before the Southwest heat wave Invasion:

 

Friday unleashed the fire zone bullseye:

 

 

Cast your eyes to the lower left, showing So Cal and Az in the heat zone epicenter. 🔥 🔥 🔥  Solid triple digits in many areas, temp records getting broken for this time of year.  The cool nights of the mid 60’s got swapped with sultry nights of upper 80’s.  Heat Miser got us with precision targeting. As they say in Star Trek vernacular: “Direct hit Scotty!” 🎯

Yup, this is what we have for the weekend and beyond for the next several days. 🌡️🔥☀️

It feels like a blast furnace outside- way too hot, even for the beach. Fortunately the weather in this area is typically decent and aberrations like this don’t last long.

 

 

The Dark Side of Humanity

All of us are aware that a whole spectrum of people exist on Earth – from the absolutely saintly selfless to the most diabolically cruel. It’s amazing how people can vary so much to such extremes.

Two cases of people on the dark part of the spectrum caught my attention this week. I usually just bring up the bad actors on Wall Street that fleece their customers but these two stood out to me.

Case 1:

A very talented student who excels in playing the clarinet applied for a prestigious scholarship at a conservatory for training under one of the very best clarinet teachers. The scholarship is valued at $50,000, which was a full ride including tuition, housing, meals, and miscellaneous living expenses.  The clarinet teacher also only accepts 2 people a year to train- which shows you how difficult it is to get approved for acceptance.

Despite those long odds, the student manages to convince the instructor and conservatory to accept him and approve him for the special scholarship.

However, he never finds out he is accepted….

…because his girlfriend at the time whom he had been dating for 5 months, saw the email of acceptance that was sent to him, and deleted it. 😲 After that, she forged an email from the conservatory telling him that he was NOT accepted, and then forged another email to mail to the conservatory telling them he refused the scholarship. 😠 The poor guy went on with his life never realizing his girlfriend duped him out of his dream until years later when he had a chance to talk with that famous instructor.

Now before I provide the story link, the reason being given for this action is that the girlfriend was afraid of losing him, thinking he would break up with her. I don’t believe this to be the case. I think it has more to do with the actions of someone psychotically jealous of his abilities.

But can you imagine how angry he must be feeling when he found out? She sabotaged his entire career! 😠 What a betrayal, by someone he would never have expected it from…..so disturbing!

McGill music student awarded $350,000 after girlfriend stalls career

https://www.cnn.com/2018/06/15/us/dream-school-false-rejection-letter-trnd/index.html

 

Case 2:

Divorced man marries woman, then after a while, starts cheating on her with other women, one of them being his ex-wife. 😲  Man runs into debt problem and looks for a way out. His solution? Arrange for his wife, the MOTHER of his two kids, to have an “accident” so he can collect on her life insurance which will also free him up to pay off his debt and chase other women. 😠 Fortunately for the wife, her guardian angel was looking out for her. He tries once, fails, tries again, and this time his misdeeds are exposed.

https://www.npr.org/2018/06/16/620531854/former-british-army-sergeant-sentenced-after-parachute-murder-attempt-of-wife?utm_medium=RSS&utm_campaign=news

 

Sure, some people are evil, but for people to betray someone they supposedly pledged their heart to is especially depraved. At least these two cases had positive outcomes for the victims.

Real Life Spider-Man Quickly Climbs 4 Floors Outside Building to Save Dangling Toddler in Paris

Fearless super-heroes most definitely exist and they walk among us…..

Picture this situation:

Mother of a small toddler is not in town and left the child with the father. The father leaves the child alone in the apartment, and the child wanders onto the balcony, climbs rail and winds up dangling over the edge, holding on for dear life, 4 levels up from the street.

There are neighbors on a balcony next door, but railing/fencing limit their ability movement to fully reach/grab the child.

A young man from Mali, Mamodou Gassama, happens to be on the street below and sees all the commotion and that the little child is in grave danger. Then this happens:

Mamodou manages to climb up 4 levels in 30 seconds to be able to pull the child back into the apartment and out of danger.  This is is quite an amazing feat to witness! He immediately sprang into action and risked his own life to save that child.

It’s mind boggling that he had the strength and stamina to climb that far up so quickly. I don’t think Spider-Man could have done it any faster!

 

Here is a picture of this newly discovered Super Hero:

Well Done Mr. Gassama!!!

 

More details in the following articles:

https://www.theguardian.com/world/2018/may/28/spider-man-of-paris-climbs-four-storeys-to-rescue-dangling-boy

http://www.bbc.com/news/world-europe-44275776

 

The Illusion of Competence: What Know-It-Alls Don’t Know — AlterNet

This “illusion of confidence” is now called the “Dunning-Kruger effect,” and describes the cognitive bias to inflate self-assessment. One day in 1995, a large, heavy middle-aged man robbed two Pittsburgh banks in broad daylight. He didn’t wear a mask or any sort of disguise. And he smiled at surveillance cameras before walking out of each…

via The Illusion of Competence: What Know-It-Alls Don’t Know — AlterNet

Free Movie Stream This Weekend on AI: Do You Trust This Computer?

There is a new documentary on AI starring big tech minds like Elon Musk:

‘Do You Trust This Computer?’ Trailer: Documentary Exploring Perils Of Artificial Intelligence Sets Switch-On Date

https://www.digitaltrends.com/movies/do-you-trust-this-computer-documentary-elon-musk/

Elon Musk is sponsoring free streaming this weekend.

Fare Thee Well AIM – The Venerable Messaging Service Signing Off Permanently in December

 

Back in the early days of the commercial internet when smart phones didn’t exist and phone texts were being changed at 10 cents a pop, AIM was the bright beacon of desktop social messaging.

Who can forget the telltale “message sent” and “message received” sounds…”doodle-deet!”….”deedle-doot!”

Time and technology marches on and now sending a text is free and standard to all phones as well as other numerous messaging apps now available.

Here’s an interesting thought exercise – for those who used AIM- do you remember the last time you used it – I sure don’t!

 

Having outlived its popularity and usefulness, they decided to call it a day- that exact day being December 15, 2017.

http://time.com/4972583/aim-ending-reactions/

 

Xanga 2017 Review and “Non-Xanga” Xanga Update

In 2013, Xanga “upgraded” its website blogging service to the WordPress format and promised its users an improved user experience on the modern blogging platform.

Since that time, I’ve reviewed its progress, and not much has changed:

2014 Xanga Review

2015 Xanga Review

2016 Xanga Review

 

This year is no different- at the 4 year mark since the move to WordPress, the following Community Killers are still in effect:

  1. No front page of latest blogs
  2. No way to search for active users
  3. Closed to new users (not that anyone is likely breaking down the door to join)
  4. Blocked off from all other social network sites including other WordPress networks.
  5. No new status updates since 2015

Also the same is the yearly $48 fee, that supposedly pays for all these “improvements”.

Also, no new “Official Updates” to pass on either from the Xanga Official “Liaison”, who can often be mistaken for Xanga PR even though he’s not an employee.

The “liaison” did offer to have his June blog comments section be a way for current Xangans to post their contact/blog info to share with others. This, at the 4 year mark with no updates to pass on from TheXangaTeam…..right. He is also suggesting that folks start sharing their posts on the Facebook site to “help keep Xangan’s connected”. Of course if Xanga were actually functional, Facebook wouldn’t be needed/suggested. Seems very BIZARRE for people to be paying $48/yr to blog on a site that promoted community, but needs FREE Facebook to actually create it…..???

Oh yeah, the “liaison” hasn’t updated his site since early July, another sign of service decay.

I think this will be the last “review” barring some breakthrough changes since everything remains the same.

Okay, I do have a Xanga, “non Xanga” update…..

A current search under “Xanga” on YouTube has turned up a Brazilian party music band who now goes by this name.

 

So here’s the TRUE latest from Xanga:

 

Not bad…maybe I should move to reviewing these guys instead.