Alexis Stenfors has worked as a trader of foreign exchange (forex) for the account of the investment bank Merrill Lynch, in London, in 2009. While the global financial markets emerged from their worst crisis since nearly a century, Stenfors, a forex trader from 15 years of experience had the impression that there was still more carnage to come, and that the financial system was about to implode, he has bet his career on this prediction.
Finally, the scenario of Stenfors proved to be wrong, it has not taken place and this trader has lost big, very big even. It was overexposed in the market, has been caught in the act, lost his job, earned the dubious distinction of «rogue trader» (trader fou) and has also been banned from the City for five years. Merrill Lynch has finally announced that this lack of trading has been losing to the bank the sum of approximately $ 456 million.
The trader deemed responsible for this financial loss, colossal was recently interviewed by the Guardian and described what it was like to work in this environment at the time. «I did not have the ability to think of the system as a whole. It was like working in a nuclear reactor. You’re so busy working on the pipes here and there, you are not able to come out and say : Wait, what happens if the whole things bursts ?».
Alexis Stenfors stated that he had received «a salary range to seven figures in 2008″, in other words a few million dollars. He referred to the way in which it is isolated socially from anyone who was not part of the financial sphere, other than her family. The only gain importance. One might therefore think that it is greed, the motivation of money and the performance that are responsible for the case of » rogue trader «.
Stenfors has also said that he didn’t know if it was close to a definitive answer to the question «Why is it so ?» in spite of having been followed by a psychologist for two years in the wake of the scandal. The case of rogue trader as Jérôme Kerviel seem so hard to explain and all sorts of assumptions and theories are likely to evoke the behavior of traders.
Go out of the world of professional traders and back in an instant to the traders as individuals, just like you and me, you should know that it is important to have feet on the ground, to adopt a risk management healthy and always adhere to the trading plan. This balance helps to avoid a cramage account and makes you immune to significant financial losses, this is what is taught in the courses and training of trading.