The more unknown and useful the information, the more valuable. If you were to appreciate this fact, you would avoid spreading it since it would only prove to make competing against the market that much more difficult for everyone, including yourself in the process.
@@johnadams2933 It's just the fact of existence; it's why trading strategies become literally worthless the moment they're adopted widely. In the stock market, information is king.
they do get caught in the end. The reason is simple. They are gamblers. Even if they make money for a long time, using a short term strategy and expecting long term gains is not sustainable. I have investing for 16 years, and i also work as a salesman. These types of narcissistic " i can never fail" types, never admit mistaces and never take stopploss. they are simply fools
I recall a rogue trader that helped a firm, a few years ago. But it didn't make the news in that the rogue trader was never named. The author himself admits as much at the 32:00 mark, saying some rogue traders are never outed if their trades benefit their employer.
One never becomes a rogue trader just by doing unauthorized trades. You become one when you lose money doing unauthorized trades. So make sure you always makes money.
Not true. Even if you make money you will likely be fired from your position because of the risk you took to make that position and they do not want you to continue that behavior. You might get a bonus, sure, but IMO consistent small gains are better than risky swings in your net worth.
There was a trader at Goldman who went massively over his limits during 9/11 and made Goldman a lot of money. He didn’t mention getting into any trouble at all other than his senior shouting initially but then joining in after explaining to him his reasoning for shorting airline stocks.
@@failam2918 : Traders who always make money are liars. There is a saying about losing the most but the losing the least. In other words cut your losses. Easier said than done.
Indeed, Patrick mentioned that Nick Leeson was never truly well investigated about his trades, until it all collapsed, even it should have been obvious something was going on. Also, Patrick omitted about Kerviels lawsuit, that he was able to get sentence of having to pay his massive losses back upturned, he DID NOT had to pay anything back. This was because initially he was making massive profits, that he worked to hide, but even with that court ruled it wasn't believable Societe Generale was unaware of risks involved due to amount of profit Kerviel was making, so they saw bank themselves partially responsible.
Love to see more true professionals come to TH-cam. You and the rest of them are raising the quality of educational videos immensely. They've gone from being quirky, exaggerated, over-simplifications to being in-depth, accurate and humble. Keep it up and I'm sure you'll be rewarded.
Mr Patrick, you are the best !!!!!!!!! What surprises me the most is how little these people's sentences are.. but if i steal 2000$ im getting 10yrs in prison, smh
You might also have included Juan Pablo Davila. He was a trader for the Chilean copper company, Codelco, who lost about $175 million trading copper futures on the London Metals Exchange back in 1993. His story was similar to some of your other rogue traders. He was incompetent and when he realized he was losing money, he kept doubling down... And he was essentially unsupervised. My recollection was that his losses represented a significant fraction of Chile's GDP at the time.
Well, rather than elect someone with an actual background in numbers like Yang, this country decided to elect that smooth operator called Trump. Republican or not, that man was a complete oaf. And we collective bought his goods.
I dont mean to be so offtopic but does anyone know a trick to get back into an Instagram account..? I was dumb lost the login password. I love any tips you can offer me!
Hey Patrick, can you do a video on rogue trader success stories? Cases where someone was not given clearance to make X investment and X investment turned out to be incredible.
sorry i took all the rogue traders and put them in my office. they think they're geniuses but the computer just does the opposite of whatever stupid trades they put in. it's basically a money printer.
We won't know about those people because why would they ever be found out? Their employers might find out and they'll be reprimanded but allowed to stay on and no criminal proceedings will occur, so the general public won't know.
I absolutely love your deadpan. It’s a technique that us Yanks aren’t too keen to adapt. We’re much too loud with very little dynamics. More importantly, I appreciate the informative nature of your content.
The Jett case is interesting. Excellent academic credentials yet he knowingly entered into a trading strategy that would exponentially increase losses from the outset with absolutely no way of ever making profit. Blows my mind 🤯
It seems comparable to Enron's mark-to-market accounting practices, where assets can be recorded on a company's balance sheet at their fair market value (as opposed to their book values).
The Orange County Cali story reminds me...A UBS rep sold my 80 year old dad a whole bunch of structured notes. My dad had no clue what they were. We lost $. But the rep took trips to Italy for pleasure. After I got POA the UBS people made it nearly impossible for me to get my dad's $ out of there! After much perserverance I was able to get it. They are scum of the Earth! These people have no skills in life other than taking from others and making a living from that.
Don't necessarily blame UBS. These are salesmen paid on commission and it's one of few fields that mints a lot of millionaires that doesn't require an exotic skill. Translation: Job attracts greedy bastards
Love the channel! Just bought each of your books. Lol the jokes are fantastic! Thank you for clarifying the difference between the actual London whale and the derivatives trader who's called the London whale 😂 I also LOL'd when you mimicked a European banker suggesting the junior trader making a move bigger than the value of the company. This is my favorite video so far!
Thanks to our growing list of Patreon Sponsors and Channel Members for supporting the channel. www.patreon.com/PatrickBoyleOnFinance Matthew Loos, Az Indragiri, Robert Proudfoot, SK, Aman Bali, Lautaro Parada, Pratap, Deborah Joseph, Robin Sung, Kurt Johnston, Kaushik Vankadkar, Christian Richards, Zak Patterson, Ki Ryu Chan, P. Bekkering, Drew, Ivaylo Kunev, Alex, Robert W Proudfoot, EatEmAll, Michael Boensel, Adrian Phang, pooh shmoo, Ron Hughes, Robert Muller, Andre Michel, Ivan Iliev, Gopaljee Atulya, Milan Tomic, Mark Hooker, Artem Vasenin, P H, Mathews Sebonego, Sebastian and Michal Lacko
@@sanderdejong66 Yeah. And how come he didn't get the same treatment as Stephen Perkins who got the fine reduced from GBP150k to 72k, "concerns that the fine would cause undue financial hardship"? USD5billion is soon going to be monthly salary at fast food restaurant, so maybe he will come out of it soon.
@niclash Because one is in Britain and one is in the EU...I'm not sure why you expect two different legal systems to parallel eachother in punishments.
I found your channel through this video which "popped up" on my recommendations. The quality of your content and your ability to explain it in layman terms is astonishing. Congratulations Sir!
Wow. Very informative mate.... And we'll presented (your a good story teller). As to the content.... I'm not sure whether to Laugh , Or Cry!!! Cheers Mate ...PJ..
Top presentation thanks Patrick . Many of the players I had never heard of and those that I had were further down the list (eg Number 10 ) that I would have anticipated .
Last one was great: "You can always make a comeback as a motivational speaker". I get this feeling, this kind of rogue trader -stories are not told very often by efficient market hypothesis supporters. If you can move price of oil just trading drunk, what other inefficients occur? I would argue that market is efficient in the long run, but you can find this kind of disruptions on daily basis. This kind of information is great for understanding the markets and what kind of players there are on the field. Thank you very much, kind sir, for your efforts and work you have put for us to use.
Regarding efficiency: This specific example doesn't illustrate a violation of the efficiency hypothesis though. Efficient market doesn't mean prices are stable, it means that your "normal" participant (one who has no special knowledge) cannot be more efficient than the market. These price movements don't contradict that. The other market participants unrelated to the rogue trader could not have predicted the spike in price. They didn't know if it would happen, when it would happen, or in which direction. So the market was already efficient and still is after the incident. Nobody else could have been more efficient than the market; nobody could take advantage of this and profit from it unless you count the rogue trading against himself with knowledge about himself.
Some of the best moves I've made as a complete degenerate trader of futures, has been when I was drunk. Waking up the next day and remembering the +800 bucks in your account and then going back and looking at the moves made it is always amazing. Heck, twice I was at the pub, drinking with friends, showed them how you can enter a trade on a phone now. The first time I forgot to exit it and 3 hours later was up 250 bucks. The second time I forgot that I had put a sell short order in as a stop loss and 2 hours later I realized I was +300 on something. Then there was the time I wasn't drunk, showing my father how it works and an hour later when I got out of the shower, I took a look to see what the markets were doing and I was up 1000 ! Guess it's really just all a simulation and sometimes you get lucky!
I am very happy I found your channel Patrick. You are increasing my knowledge on the market. I am new at the market and very grateful for your teaching. Keep it up. Smile from Denmark.
As someone who just applied for a team lead position at my work, I definitely agree it’s important to supervise employees. We don’t trade futures or have access to that level of funds in our department, as we handle 401k accounts, pension and non qual plans, as well as equity accounts, all of which usually cap at around $10,000,000 for the wealthiest people, that’s still a lot of money, and altogether, we move around billions of dollars a month, if not more. More often than not, issues in our department stem from agents not processing transactions properly, or failing to enter trades as a result of human error, but with an effective system in place to catch these things, and a management team with attention to detail, you can mitigate some of this risk.
Patrick, you're a stud. I love these types of videos and really helps put things in perspective with my own trading. I broke my own rules and bought call options with my ENTIRE account of amazon earnings, thus resulting in... 3x my account in profits. I thought I was a king for a day and then decided to short 100 SPX 1 delta otm options during Feb this year and blew up my account during the sell off. Instead of getting out and taking the losses, I figured I'd let the numbers play out and it annihilated me. I lost everything in this sell off and am slowly building back my 7 figure loss.
Good list. You might have added Yasuo Hamanaka of Sumitomo, who tried to corner the copper market, and the Hunt brothers who tried something similar with the Silver market. Both ended in tears. Another interesting one was Surinder Singh Sarao, the so-called Hound of Hounslow ... who was credited (unfairly) with the Flash Crash.
@@PBoyle No problem, it was very interesting. Future video idea ... what's the difference between the "spoofing" undertaken by Sarao, and the electronic front running of the High Frequency traders, the designated "victims" of his activity? To me, both are gaming the system at the expense of the ordinary investor.
Also, funnily enough I just downloaded your Financial Derivatives book onto my Kindle, as I'd like to learn more about Options. I'll explain why. I was a shareholder in ITV (short term, in 3/20, out 12/20) but have watched it over the years since Liberty Global (LG) took a stake of 9.9% several years back. LG used a loan arrangement (ITV Collar Loan) to buy the shares, and entered into a put/call collar arrangement with, I believe Goldman Sachs (ITV Collar), who also appeared to build a 10% stake using derivative instruments like CFDs, so 20% between them. The selling price jumped on the news, as investors believed it indicated M&A was imminent. But since that period the selling price fell steadily over the years, troughing in March 2020. The LG shares were collateral for the loan, (allowing GS to control 20%) and the Collar appeared to protect LG on the downside (if ITV SP fell), but offered limited upside. The average cost of the shares was above £2 (I believe). Goldman has recently unwound their position, and this coincided with a steady climb in the ITV share price. LG have since indicated that their average cost of each share is 60-70p (approx)? It looks to me like the LG/GS arrangement has been used to short the stock and allow LG to reduce their cost of ownership? I think they have form here. As a future video, it would be interesting to understand how this works, and why it is legal?
"Finally we learned, that if disgrace, you can always make a comeback as a motivational speaker, except of course if you lost money for the chinese government" - You're one funny guy man honestly, great content as usual Patrick, keep them coming! I would like to see more of your views on the FX market as well
2006 was an unusual year in the natural gas markets in North America. The normal pattern is natgas demand exceeds production in the winter heating season and natgas is taken out of storage and storage levels go down. Outside of winter, the normal pattern is that production exceeds demand and natgas goes into storage and storage levels increase. In August 2006, there were two weeks where storage levels declined (the EIA reports natgas storage levels every week) due to demand exceeding production. This had never happened before in almost 15 years of reporting and has happened only once since. Commodity traders really should get to know the supply and demand characteristics of the commodities which they are trading.
what I do is just short the longest dated contract I can find because I figure they will always dig up more somewhere and then I will just buy the front month easy peasy
Was really entertaining to learn of these catastrophic stories. Good to know hubris can still exist even after graduating from an accredited university and entering a institution.
in late 2018 a Danish or Norwegian power trader almost brought down the entire NORDPOOL, it was the biggest trader and I believe he bet against German power to Nordic spread.. In 2014, OW Bunkers collapsed for not hedging it's physical oil positions. it was also a big scandal in Sngapore.
Einar Aas was the power trader you mentioned. Truly amazing how he singlehandedly ended most long term power futures trading in Scandinavia for almost 2 years.
Great stories and of course excellent narration. I do enjoy seeing where the direction the channel has taken and the development of the persona for it, keep up the brilliant humour!
I would really like to see a video commenting on whether the Stock market actually reflects the real economy , providing explanations regarding the cointegration between Equities and GDP.
Great video. Why are rogue traders always those who lose money? They are the ones who get caught, there would be just as many who go undetected, walking away very rich
Most underrated channel on TH-cam
If i could buy a derivate on this channel i would buy to a crazy strike price.
Happy it showed up on recommended. This video is hilarious.
The more unknown and useful the information, the more valuable. If you were to appreciate this fact, you would avoid spreading it since it would only prove to make competing against the market that much more difficult for everyone, including yourself in the process.
@@Gogglesofkrome lol ok buddy
@@johnadams2933 It's just the fact of existence; it's why trading strategies become literally worthless the moment they're adopted widely. In the stock market, information is king.
Hearing all these stories I wonder how many rogue traders never got caught because doubling their trading positions to cover up losses actually worked
@@berthaalina5422 Get dis shit outta here!
@Bertha Alina reported for spam/scamming
they do get caught in the end. The reason is simple. They are gamblers. Even if they make money for a long time, using a short term strategy and expecting long term gains is not sustainable. I have investing for 16 years, and i also work as a salesman. These types of narcissistic " i can never fail" types, never admit mistaces and never take stopploss. they are simply fools
I recall a rogue trader that helped a firm, a few years ago. But it didn't make the news in that the rogue trader was never named. The author himself admits as much at the 32:00 mark, saying some rogue traders are never outed if their trades benefit their employer.
99% of them
One never becomes a rogue trader just by doing unauthorized trades. You become one when you lose money doing unauthorized trades. So make sure you always makes money.
Not true. Even if you make money you will likely be fired from your position because of the risk you took to make that position and they do not want you to continue that behavior. You might get a bonus, sure, but IMO consistent small gains are better than risky swings in your net worth.
There was a trader at Goldman who went massively over his limits during 9/11 and made Goldman a lot of money. He didn’t mention getting into any trouble at all other than his senior shouting initially but then joining in after explaining to him his reasoning for shorting airline stocks.
@@failam2918 : Traders who always make money are liars. There is a saying about losing the most but the losing the least. In other words cut your losses. Easier said than done.
@@thewhitefalcon8539 : Yes, the OP was a joke. I suggest you read the comments again.
Indeed, Patrick mentioned that Nick Leeson was never truly well investigated about his trades, until it all collapsed, even it should have been obvious something was going on.
Also, Patrick omitted about Kerviels lawsuit, that he was able to get sentence of having to pay his massive losses back upturned, he DID NOT had to pay anything back.
This was because initially he was making massive profits, that he worked to hide, but even with that court ruled it wasn't believable Societe Generale was unaware of risks involved due to amount of profit Kerviel was making, so they saw bank themselves partially responsible.
"empty bottle on the bottom of the ocean being pushed around by a wave" is one hell of a burn
I feel sorry for the dude to be honest.
@@DKNguyen3.1415that's just what the lawyers said to keep him from facing any real consequences
Bwahhaha no kidding. When your legal strategy is "shit on your client"
Imagine being officially labeled a "extreme market risk when drunk". Achievement of a lifetime.
I would put that on my Linkedin profile
Should I continue to drink?
Epic~
@@sunshine7453 If you did, you should have to rename your account to Moonshine.
That’s what k was thinking - awesome!
Love to see more true professionals come to TH-cam. You and the rest of them are raising the quality of educational videos immensely. They've gone from being quirky, exaggerated, over-simplifications to being in-depth, accurate and humble. Keep it up and I'm sure you'll be rewarded.
It's amazing how lightly these people got off. Your dry humour throughout this video is the only consolation I derive.
If the whole hedge fund thing doesn't work out you can always become a comedian. Top-tier humour
Well he is Irish!! Occupational hazard ;-)
😂😂
Black humour.
@@Longtack55 dark*
Mr Patrick, you are the best !!!!!!!!!
What surprises me the most is how little these people's sentences are.. but if i steal 2000$ im getting 10yrs in prison, smh
Big difference when the ppl u fuck over are “lil ppl”.
You might also have included Juan Pablo Davila. He was a trader for the Chilean copper company, Codelco, who lost about $175 million trading copper futures on the London Metals Exchange back in 1993. His story was similar to some of your other rogue traders. He was incompetent and when he realized he was losing money, he kept doubling down... And he was essentially unsupervised. My recollection was that his losses represented a significant fraction of Chile's GDP at the time.
The deadpan humour kills me. Keep it up Patrick
“A show known for launching, successful political careers “ 😂😂😂😂 Patrick! You’re a gem! 😂😂😂😂
I really enjoy your sarcasm and humor. You put just enough to make me watch the whole video, but too much to have me shut it off. Cheers!
"Citron had the maths skills of a seventh grader...." omg, that stuck.
"Let's make him the treasurer." Politics in a nutshell.
Well, rather than elect someone with an actual background in numbers like Yang, this country decided to elect that smooth operator called Trump. Republican or not, that man was a complete oaf. And we collective bought his goods.
Tried so hard not to laugh... ended up laughing
@@tonywilson4713 The system works. It just doesn't work on behalf of proletarians.
I dont mean to be so offtopic but does anyone know a trick to get back into an Instagram account..?
I was dumb lost the login password. I love any tips you can offer me!
Your deadpan jokes are fucking hilarious. lol
"and I don't know how that's coming along for him" Absolutely buckled hahaha.
"Not an actual whale"
He was keeping a straight face while saying it, so it will be too late before you know he was joking
It really is the best, every video there's something where I stop it to go back and say, wait did he just say that... lol
More wit than 99.99% of utubers
Hey Patrick, can you do a video on rogue trader success stories? Cases where someone was not given clearance to make X investment and X investment turned out to be incredible.
sorry i took all the rogue traders and put them in my office. they think they're geniuses but the computer just does the opposite of whatever stupid trades they put in. it's basically a money printer.
@@boldCactuslad is jim cramer one of them? You'd have made a killing from the housing market crash in 2008, also from Netflix last year
If they were successful, their firms would never publicly admit they are rogue.
@@sakikogookheng Jim Cramer? What kind of losers would see him as a maverick?
We won't know about those people because why would they ever be found out? Their employers might find out and they'll be reprimanded but allowed to stay on and no criminal proceedings will occur, so the general public won't know.
I absolutely love your deadpan. It’s a technique that us Yanks aren’t too keen to adapt. We’re much too loud with very little dynamics. More importantly, I appreciate the informative nature of your content.
Your best video yet Patrick. Laughed out loud on several occasions
Brilliant content Patrick, thoroughly enjoyed the whole half hour. The jokes were also on point 😄
The Jett case is interesting. Excellent academic credentials yet he knowingly entered into a trading strategy that would exponentially increase losses from the outset with absolutely no way of ever making profit. Blows my mind 🤯
It seems comparable to Enron's mark-to-market accounting practices, where assets can be recorded on a company's balance sheet at their fair market value (as opposed to their book values).
Probably was making a good cut from it and was preparing to leave.
content is great.. but it took me 20 mins in the video to realizes he's throwing jokes here and there because that poker face.
The Orange County Cali story reminds me...A UBS rep sold my 80 year old dad a whole bunch of structured notes. My dad had no clue what they were. We lost $. But the rep took trips to Italy for pleasure. After I got POA the UBS people made it nearly impossible for me to get my dad's $ out of there! After much perserverance I was able to get it. They are scum of the Earth! These people have no skills in life other than taking from others and making a living from that.
100%. All financiers are essentially thieves and parasites.
And the other terrible evil is joining them now
Structured notes are restricted to the point of being unsellable except in select European states for this reason.
Don't necessarily blame UBS. These are salesmen paid on commission and it's one of few fields that mints a lot of millionaires that doesn't require an exotic skill. Translation: Job attracts greedy bastards
@@samsonsoturian6013
Is UBS not responsible for the actions of their reps, especially if they are exploiting the elderly?
The deadpan delivery about the distinction of whales had me cracking up so hard, I loved it.
@@jasminedavid7050 Reported for scamming.
Love the channel! Just bought each of your books. Lol the jokes are fantastic! Thank you for clarifying the difference between the actual London whale and the derivatives trader who's called the London whale 😂 I also LOL'd when you mimicked a European banker suggesting the junior trader making a move bigger than the value of the company. This is my favorite video so far!
Thanks to our growing list of Patreon Sponsors and Channel Members for supporting the channel. www.patreon.com/PatrickBoyleOnFinance Matthew Loos, Az Indragiri, Robert Proudfoot, SK, Aman Bali, Lautaro Parada, Pratap, Deborah Joseph, Robin Sung, Kurt Johnston, Kaushik Vankadkar, Christian Richards, Zak Patterson, Ki Ryu Chan, P. Bekkering, Drew, Ivaylo Kunev, Alex, Robert W Proudfoot, EatEmAll, Michael Boensel, Adrian Phang, pooh shmoo, Ron Hughes, Robert Muller, Andre Michel, Ivan Iliev, Gopaljee Atulya, Milan Tomic, Mark Hooker, Artem Vasenin, P H, Mathews Sebonego, Sebastian and Michal Lacko
Are there any rouge trades that made big profits?
@@IronMan-ch7de Steve Cohen
@@olliemoore11 Okay i have heard from him, he was banned. They could not proof that he himself was involved in insider trading.
Subtle sarcasm is amazing ... You are very true person sir. Respect...
How did you manage to keep a straight face when referencing the London whale. Thank you for the interesting video"
Such a fantastic sense of humour! Massively underrated channel
Absolutely love your content! Best finance channel on the platform!
very interesting, I learned a lot. thank you for all the work and sharing.
"He has to pay back the 5 billion euros that he lost - I don't know how that's coming along for him."
Brilliant!
Even if he writes a book and makes, say, a million. Then he still needs to pay off another 4,999,000,000
@@sanderdejong66 Yeah. And how come he didn't get the same treatment as Stephen Perkins who got the fine reduced from GBP150k to 72k, "concerns that the fine would cause undue financial hardship"? USD5billion is soon going to be monthly salary at fast food restaurant, so maybe he will come out of it soon.
@niclash
Because one is in Britain and one is in the EU...I'm not sure why you expect two different legal systems to parallel eachother in punishments.
this rogue trader series is awsome thank you !! interesting stuff
Love the video! Keep up the good work!
Your channel is great! I thoroughly enjoyed this video!
Glad you enjoyed it!
I found your channel through this video which "popped up" on my recommendations. The quality of your content and your ability to explain it in layman terms is astonishing. Congratulations Sir!
until you realize hes reading off wikipedia
Wow. Very informative mate....
And we'll presented (your a good story teller).
As to the content....
I'm not sure whether to Laugh ,
Or Cry!!!
Cheers Mate ...PJ..
Remember kids, don't drink and trade.
This is my new favourite channel. The content is best in class and I love the dry humour.
Top presentation thanks Patrick . Many of the players I had never heard of and those that I had were further down the list (eg Number 10 ) that I would have anticipated .
That was really entertaining! Thanks for the efforts to produce !!
Great one Patrick!
This was a real joy to watch, I hope you continue to post these documentary videos!
Love your videos. Usually don't watch 30 minutes youtube
Thanks! Glad you like them!
This channel is amazing, thanks so much
Oregon
Last one was great: "You can always make a comeback as a motivational speaker".
I get this feeling, this kind of rogue trader -stories are not told very often by efficient market hypothesis supporters. If you can move price of oil just trading drunk, what other inefficients occur? I would argue that market is efficient in the long run, but you can find this kind of disruptions on daily basis. This kind of information is great for understanding the markets and what kind of players there are on the field. Thank you very much, kind sir, for your efforts and work you have put for us to use.
Regarding efficiency:
This specific example doesn't illustrate a violation of the efficiency hypothesis though. Efficient market doesn't mean prices are stable, it means that your "normal" participant (one who has no special knowledge) cannot be more efficient than the market. These price movements don't contradict that.
The other market participants unrelated to the rogue trader could not have predicted the spike in price. They didn't know if it would happen, when it would happen, or in which direction. So the market was already efficient and still is after the incident. Nobody else could have been more efficient than the market; nobody could take advantage of this and profit from it unless you count the rogue trading against himself with knowledge about himself.
Some of the best moves I've made as a complete degenerate trader of futures, has been when I was drunk. Waking up the next day and remembering the +800 bucks in your account and then going back and looking at the moves made it is always amazing. Heck, twice I was at the pub, drinking with friends, showed them how you can enter a trade on a phone now. The first time I forgot to exit it and 3 hours later was up 250 bucks. The second time I forgot that I had put a sell short order in as a stop loss and 2 hours later I realized I was +300 on something. Then there was the time I wasn't drunk, showing my father how it works and an hour later when I got out of the shower, I took a look to see what the markets were doing and I was up 1000 ! Guess it's really just all a simulation and sometimes you get lucky!
Another quality video. Thank you, sir!
I am very happy I found your channel Patrick. You are increasing my knowledge on the market. I am new at the market and very grateful for your teaching. Keep it up. Smile from Denmark.
As someone who just applied for a team lead position at my work, I definitely agree it’s important to supervise employees. We don’t trade futures or have access to that level of funds in our department, as we handle 401k accounts, pension and non qual plans, as well as equity accounts, all of which usually cap at around $10,000,000 for the wealthiest people, that’s still a lot of money, and altogether, we move around billions of dollars a month, if not more. More often than not, issues in our department stem from agents not processing transactions properly, or failing to enter trades as a result of human error, but with an effective system in place to catch these things, and a management team with attention to detail, you can mitigate some of this risk.
You could employ Kerviel
Color me surprised that nobody from Enron made the list, great video I was completely unaware of most of these
Very enjoyable, thank you!
Do moreee watched whole video!
This channel is gold
Thank you Patrick, this is incredible content. Hard to find your type of videos. High quality!
“You can always make a comeback as a motivational speaker.” - Ha, well said...
Amazing, the funniest financial discussion I've ever seen.
Love the content Patrick - nicely explained and super entertaining even for a novice :)
This one had me cracking up. Well done Patrick.
great video Patrick
Patrick, you're a stud. I love these types of videos and really helps put things in perspective with my own trading. I broke my own rules and bought call options with my ENTIRE account of amazon earnings, thus resulting in... 3x my account in profits. I thought I was a king for a day and then decided to short 100 SPX 1 delta otm options during Feb this year and blew up my account during the sell off. Instead of getting out and taking the losses, I figured I'd let the numbers play out and it annihilated me. I lost everything in this sell off and am slowly building back my 7 figure loss.
Good list. You might have added Yasuo Hamanaka of Sumitomo, who tried to corner the copper market, and the Hunt brothers who tried something similar with the Silver market. Both ended in tears. Another interesting one was Surinder Singh Sarao, the so-called Hound of Hounslow ... who was credited (unfairly) with the Flash Crash.
I actually had all of those on my list, but had to cut them to shorten the video.
@@PBoyle No problem, it was very interesting. Future video idea ... what's the difference between the "spoofing" undertaken by Sarao, and the electronic front running of the High Frequency traders, the designated "victims" of his activity? To me, both are gaming the system at the expense of the ordinary investor.
Also, funnily enough I just downloaded your Financial Derivatives book onto my Kindle, as I'd like to learn more about Options. I'll explain why. I was a shareholder in ITV (short term, in 3/20, out 12/20) but have watched it over the years since Liberty Global (LG) took a stake of 9.9% several years back. LG used a loan arrangement (ITV Collar Loan) to buy the shares, and entered into a put/call collar arrangement with, I believe Goldman Sachs (ITV Collar), who also appeared to build a 10% stake using derivative instruments like CFDs, so 20% between them. The selling price jumped on the news, as investors believed it indicated M&A was imminent. But since that period the selling price fell steadily over the years, troughing in March 2020. The LG shares were collateral for the loan, (allowing GS to control 20%) and the Collar appeared to protect LG on the downside (if ITV SP fell), but offered limited upside. The average cost of the shares was above £2 (I believe). Goldman has recently unwound their position, and this coincided with a steady climb in the ITV share price. LG have since indicated that their average cost of each share is 60-70p (approx)? It looks to me like the LG/GS arrangement has been used to short the stock and allow LG to reduce their cost of ownership? I think they have form here. As a future video, it would be interesting to understand how this works, and why it is legal?
Don't you mean navider singh sarao
@@ProfAzimov Yes.
"Finally we learned, that if disgrace, you can always make a comeback as a motivational speaker, except of course if you lost money for the chinese government" - You're one funny guy man honestly, great content as usual Patrick, keep them coming! I would like to see more of your views on the FX market as well
This channel is legendary
If this channel was a stock I would def buy it cause this channel is going to a million for sure!
Great stuff, very enjoyable.
I love your sarcasm and humour. Great Channel :D
Your French impression left me in tears
Just fabulous! Totally enjoyed your narrative adorned with humour. Great!
2006 was an unusual year in the natural gas markets in North America. The normal pattern is natgas demand exceeds production in the winter heating season and natgas is taken out of storage and storage levels go down. Outside of winter, the normal pattern is that production exceeds demand and natgas goes into storage and storage levels increase. In August 2006, there were two weeks where storage levels declined (the EIA reports natgas storage levels every week) due to demand exceeding production. This had never happened before in almost 15 years of reporting and has happened only once since. Commodity traders really should get to know the supply and demand characteristics of the commodities which they are trading.
what I do is just short the longest dated contract I can find because I figure they will always dig up more somewhere and then I will just buy the front month easy peasy
Fascinating! Thanks for your work. ;)
Most enjoyable video yet. Thanks! 😂🧐
Thanks for putting all these together. 10... and many more to add on to this in the future....
Bob and Doug...had me rolling when they flashed by!
Absolutely excellent video. I enjoyed this so much. Thank you.
great stories!!!
this is probably my favourite new channel the amount humor in this one video is crazy
"Better to be Lucky than Smart"
- Bob Citron
Your dry humour is such a delight.
great analysis
Good video Partrick, thanks.
Was really entertaining to learn of these catastrophic stories. Good to know hubris can still exist even after graduating from an accredited university and entering a institution.
😂😂😂 reminded me of the average person reading gossip news to feel better about their lives
Hey Patrick, Great Videos. Really appreciate your work!!
in late 2018 a Danish or Norwegian power trader almost brought down the entire NORDPOOL, it was the biggest trader and I believe he bet against German power to Nordic spread..
In 2014, OW Bunkers collapsed for not hedging it's physical oil positions. it was also a big scandal in Sngapore.
Einar Aas was the power trader you mentioned. Truly amazing how he singlehandedly ended most long term power futures trading in Scandinavia for almost 2 years.
This is a great video! Great perspective on these events.
Good stuff!
You've just become my favorite channel...
"...for launching political careers." got me crying.
Love your work.
This is very interesting, make more like these!
Great stories and of course excellent narration. I do enjoy seeing where the direction the channel has taken and the development of the persona for it, keep up the brilliant humour!
The real question would be who appointed Robert Citron to do such a delicate and important task?
I can only hope Bob Citron managed Orange County on an Apple.
Says here he was elected:
www.ocregister.com/2019/12/06/heres-how-orange-county-went-broke/
I was wondering that. If he was in the bottom 5% for maths skills, what was he doing in that job?
This guy has one of the best channels on finance in youtube. He’s legit
🧡💛💚💙 Patrick is awesome 🧡💛💚💙
Extremely entertaining video, thank you.
Lesson learned, NEVER EVER DOUBLE DOWN YOUR POSITION
well double down is basically a revenge trade so yeah its a no no
really fun viewing Patrick Boyle's witty, satirical breakdowns!
Very interesting, thanks Patrick. The London Whale among other jokes got a laugh out of me😂
You’ve earned yourself a subscriber, congratulations and keep up the good work.
I would really like to see a video commenting on whether the Stock market actually reflects the real economy , providing explanations regarding the cointegration between Equities and GDP.
Lovely video.. thank You
Great video. Why are rogue traders always those who lose money? They are the ones who get caught, there would be just as many who go undetected, walking away very rich