Anything can happen in this world! When it comes to trading, it’s strange how a pro trader can lose nearly half of the trading capital in 3 trading weeks. Most of the time, this kind of behavior is typical of rookies, but not professionals following sound money management. Still, this is what happened to Paramon, who used to be the leading trader in the PrivateFX №1 Portfolio. It’s his trading activity that resulted in major losses for Masterforex-V Club investors. Now it’s time to revise the investments….
Where are the profits gone?
Apparently, this was the main question for the investors who got a weekly report on PrivateFX №1. Everyone was hoping for a breakthrough after the drawdown, which made the total profit shrink all the way down to 1,6%. However, instead of profits, another unpleasant surprise happened. Out of the initial investment of $15000, the amount shrank down to $11 565,57. Given the profit withdrawn previously ($1 519,58), the total drawdown is now equal to 13,43%. Alas, this is the result 18 weeks after the start.
What’s the reason? Indeed, mid-October was a tough time for international traders, leaving some of them with losses. However, later on, the situation changed for the better, allowing the rest of the traders, except Paramon, to stay afloat with moderate profits and looking for other decent investment opportunities. Paramon made another major and fairly costly mistake, therefor dragging down the rest of the investment portfolio.
These are the conclusions:
Diversification is everything, whenit comes to financial markets. Should the investor portfolio have included more accounts, the drawdown could have been less considerable. Since the investments are distributed between 3 major units, each mistake is costlier.
You cannot do without diversification in investment business. The entire trading history of the portfolio confirms just that. Should the investors, have trusted the money with a single trader, the drawdown could have been well over 40%.
Even the best traders can make costly mistakes at times. Nobody can guarantee 100% safety of your funds and outstanding results over the long term, which is another reason why you should absolutely diversify your investments at all times.
Trading Results. July 4,2016 - November 5,2016:
This is the profitability before the initial withdrawal of profit (July 4,2016 - September 16,2016:
Now let’s take a look at the profitability after the initial withdrawal (since September 16th):
The initial capital was 15000 dollars. It was equally distributed between the 3 mentioned investments:
While some of the managing traders are losing their leading positions in terms of the money invested in them, others are taking the lead. In particular, we have a new millionaire account, which is run by Kuroles.
As of November 5, the traders manage the following money pools:
1. Paramon – $ 500 369,38
2. SmartInvest – $ 409 624,34
3. Kuroles – $ 1 388 155,43
4. Rush – $ 918 510,42
5. ARMADA – $ 481 472,21
At the same time, their weekly profits are:
- Rush – 2,03%
- Kuroles – 2,02%
- ARMADA – 2,33%
- SmartInvest didn’t trade
- Paramon lost over 46% over the reporting period. No comments!
