Sugar Brokers busted?

Discussion in 'Ag Futures' started by Tradalot, Jan 8, 2004.

  1. Tradalot

    Tradalot

    Hi
    my broker is at vaccation at the moment. his deputy told me to buy calls on sugar july 04 because he "heard" that some brokers got busted for manipulating the sugar market downward.
    The market is expected to climb up to 6.50 again.
    Is this true? has anyone heard that someone got busted for anything like that? It happend around xmas he told me. He said he could not send me the article because he heard it from a phone call.... sounds very suspect. He got me into to buying calls... but I would like to find out if he tricked me. If so, this broker is history.
    thanks for any replies.
    regards
    Tradalot.
     
  2. Your broker will be busted for manipulating the sugar market up.
     
  3. Or manipulating your money from you.
     
  4. it does sound suspicious... But why did you get into that trade then?
     
  5. Tradalot

    Tradalot

    Well first he told me the story about the police and stuff.... the brokerage company has served me very well so far... I didnt expect anything bad. But as I checked the news and searched the boards about it I got a bad feeling about it. And as this deputy couldnt send me any informations about it or tell me why nobody else knows about it....
    I'll see. If I loose any money on this I will stop using this broker.
     
  6. The contract has 200k open interest doing about 20k per day, dominated by brazilians,hersheys,commecials, etc. I strongly doubt 1 broker can manipulate that mkt. He might be dishonest and run stops agressively but even then he will get busted eventually. I just came from there today for tests to get in as a local and as hard as it is to believe there are a LOT of honest trader/brokers there. Yes you get bad apples but a majority of them own seats, own multiple seats even and since seats are a barometer of the perceived integrity of exchange, they really go out of their way to make sure paper gets treated fair. Very few exchange traded markets can be manipulated. Ask the Hunts !
     
  7. Aloha, Tradalot - Welcome to Elite.
    * Brokers are the only people in the world to take large amounts of money from strangers and then act as if it has no effect on there behavior. It does!! *

    Brokers and Conflict of Interest

    Tradalot this sounds like Gossip plain and simple. You are not implying that you are trading on Gossip?

    There was nothing wrong in the broker giving you the latest rumor in order to earn commissions. Maybe you called because you were looking for a little action. How were they to know?

    If you ask them, should you trade or not trade. There job description demands that the say "Trade!"

    As long has you have no trouble with the brokers executions of orders they are doing what you are paying them for. You can depend on brokers to give guidance in how to place orders, when and what exchange to place the order on. If you are requesting gossip and rumors. You are lucky to find someone to hold your hand, while your funds disappear.

    If you plan to keep being successful in this game, you should hire and depend upon your own research. You should not be getting recommendations from Brokers. Hire your own Research, this in no place to be accepting freebees. If your broker is recommending trades unasked, get another broker before he gets all of your funds. Brokers work transacting transactions for a living. Nothing that they tell you will not be influenced by there need too keep making a living.

    [​IMG]Why not see what Jesse Livermore has to say about your trading on unsubstantiated rumors.
    Now why would he do that?

    Most calls expire worthless; most people who buy calls lose. How much do broker's lose on a call?

    You have put this employee in a position to influence your game when their personal gain is due to loyalty to a third party.
    He did not trick you. You asked for rumor you got it. If it was fact, the market would have already reacted and it would be to late to profit from the information. No body can predict the future. You will always be trading on uncertainty. Find research that trades with your time horizon and follow it.

    You are putting your Broker in a position of trust those conflicts with their simple need to earn a living by transacting transactions in your account. They make money off you, win, or lose.

    [​IMG] Do not expect more than what they do. A good broker can figure out what you want to do and place the orders at the proper time on the proper exchanges.

    Are your broker’s actions such that an independent observer might reasonably question whether the individual's professional actions or decisions are or could be determined by considerations of private gain rather than by potential benefit to the client?... It's OK. They are not there to do your trading for you.
    From what you told us, your broker is not at fault at all for anything. When you opened your trading account you should have been made aware that there is a direct "Conflict of Interest," accepting advise from a Broker. Conflicts need not be intentional they just choose to set it up this way.
    Brokers are middle-people. They take a slice of your winnings and have no trouble adding on a slice to your losses. You should not get your investment ideas from anyone who has any kind of "conflict of interest," with you on the losing side. In almost all cases, they will eventually help you kiss your funds goodbye.
     
  8. zdreg

    zdreg


    i hope you bought a far out futures sugar contract
     
  9. the only way to make a small fortune in futures is to start with a large one...

    just an opinion of course