Wow... what a week so far. Markets are relatively stable but our account exploded. Read on pls.
Monday morning we closed our positions carried over from last week and opened some new trades later on during the day.
And then starts some fun time with account balances exploding upside and Margin calls. Due some computer glitch, seems we had some positions carried forward that should not have.
Result was .. our account balances jump to over $22,000 ( how nice ) on Monday night followed by a huge Margin Call Tuesday at 11 AM to deposit $ 25,000 by 2 PM same day or else all positions will be liquidated.
Within minutes of that margin call, we closed all open position at that time, about 6 of them, at the Market, without even glancing at ongoing prices. With all positions having closed at Market before the due time for margin call, margin requirements exploded ever higher.
Another Margin call came though following day for $40,000 and account was locked out automatically. We could neither trade nor figure out what was happening, as the account was referred to RISK Management at our Broker and they were looking into it.
This morning, however, everything opened back normally.
Due to all these haphhazard trades, that we had to close at moments Margin Call notice, account balances have naturally suffered. In addition, two Index trades have closed almost worth less at expiry and we will attribute that to our negligence, over confidence ( leaving open trade while away on holiday ) as well as BEAR STEARN domino affect on the markets.
We are sorting out all positions and will report final situation as of month end. Inspite of all this, we still have over 75% returns for less then three months, when all Indices and markets are seriously negative.
Open trades at this time are:: LEH, APA, WLT.
Happy tradin.
Harry
