It is unfortunate that my Broker PFG has been placed into liquidation. I have spent some time pondering Russell R. Wasendorf, Sr suicide attempt and have this resolution.

ALWAYS USE A STOP.

W.D.Gann notes in his book “45 Years In Wall Street”, the traders that made money and gave it back and those that kept it. GANN’s 3 never failing rules are.

1. Always use a stop

2. Always use a stop

3. Always use a stop.

The Risk disclosure statements you see on all trading sites and trading brokerages, express the risk of loss in monetary terms. But here we have the CEO of PFG  demonstrating that the risk of loss can be far greater than money and can result in the loss of life. My question is where did Wasendorf place his stop. If his stop was placed correctly he would have come forward and reduced the size of risk in the early stages. The numbers that are coming out are in the $200,000,000. Even with an extravagant lifestyle I find it hard to believe that anyone could spend this amount of money without waving a flag. However in todays wild swinging markets this sum of money could be lost in a matter of months. Writing options or trading large futures contracts.

W.D.Gann claims that after the years he spent in Wall St his most valuable possession is TIME.

I for one would not trade my time here for all the money in the world, I will always use a stop.

My thoughts only. Raef Mackay.