Financial Pacific: Trade mentor, trading psychology


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Financial Pacific: “The Right Wave to Invest”
In today’s global economy it is important to be fully aware of the intricacies of international investments and the opportunities that these have to offer. Financial Pacific offers proven overseas investment opportunities.
If you are interested in a reliable investment institution look no further because Financial Pacific provides: Wealth Management, Online Trading, Institutional Services and Corporate Finance. With cutting edge technology we are capable to support highly specialized derivatives instruments such as: CFDs, ETFs, CFDs on Commodities, ETCs, Futures and Options. In addition investors have access to a wide range of investment opportunities through: Structured Notes, Fixed Income, Reverse Convertibles, Preferred Stocks, and Institutional Hedge Funds.
Fully regulated by Comisión Nacional de Valores de Panama since 2003; allow us to provide you with the necessary tools to take advantage of the global markets.

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    Fraud in Panama: Pacific Financial / Financial Forex - Account 'Omnibus'

    The “Superintendencia del Mercado de Valores SMV” (Panamanian Broker Regulatory Entity) ordered, this past Tuesday, October 16, 2012, and for a period of 30 days, the reorganization of the Broker “Finacial Pacific”, Inc., on the grounds that there were indications that the company confronted administrative problems.

    The ambitions of the Broker “Financial Pacific” aren’t ending in the accusations of the “Superintendencia del Mercado de Valores SMV” (Panamanian Broker Regulatory Entity), “Financial Pacific” apparently is involved in other possible violations, perpetrated by senior executives of the firm, who have orchestrated a sophisticated scheme fraud and scam to illegally misappropriation of client’s funds in the firm.

    The Broker “Financial Pacific” has damaged the credibility and security of its’ customers and investors, jeopardizing all client’s funds, with possible seizures in Panama, and seizures abroad, including the United States, for possible illegal activities in money laundering ('Anti-Money Laundering') and violations of regulations of Patriot Act. The Patriot Act, which amends the Bank Secrecy Act ('BSA'), was adopted in response to September 11, 2001 terrorist attacks on the World Trade Center in New York. The Patriot Act is intended to strengthen U.S. measures to prevent, detect and prosecute international money laundering and terrorist financing. These efforts include anti-money laundering (“AML”) tools that impact the banking, financial, and investment communities.

    “Financial Pacific” created a new legal entity in Panama, with the name “Financial Forex”, and opened several secret bank’s accounts in local and international banks, to managed funds of the customers secretly, without the proper supervision of the “Superintendencia del Mercado de Valores SMV” (Panamanian Broker Regulatory Entity), entity that regulates the activities of the Broker in the Republic of Panama.

    'Omnibus accounts” is an account between two futures merchants (Brokers). It involves the transaction of individual accounts which are combined in this type of account, allowing for easier management by the futures merchant. These accounts they termed as 'omnibus account', received millions of dollars from hundreds of individuals and entities worldwide. “Financial Pacific” offered to its customers the service to send and receive payments from third parties directly in this special account 'omnibus account', and they customers will be charged a service fee for each banking transaction, purported a licensed Bank within banking activities. “Financial Pacific”, through “Financial Forex”, offered this service to small International Banks, whereas “Financial Forex” received deposits from customers of the Bank (third party deposit), and notified to the Banks their client’s deposits, and these deposits are credited to a special investment account at the Broker (“Financial Pacific”). Subsequently, “Financial Pacific” selling to their customers banking instruments called 'certificates of deposit' (or “plazo fijo'), and “Financial Pacific” represented there selves with legal authorization of the Panamanian Laws, on this way “Financial Pacific” could managed client’s funds without any supervision, restriction or regulation, and the money was used for personal interests of the owners behind “Financial Pacific”, Mr. Ivan Clare Arias and Mr. West Valdés.

    These activities Financial Pacific and Financial Forex are created great concern about the reliability, integrity and transparency of Panamanian regulatory agencies, such as the “Superintendencia del Mercado de Valores SMV” (Panamanian Brokers Regulatory Entity) and the Superintendencia de Bancos de Panamá (Panamanian Banks Regulatory Entity), about the possibility that a Broker orchestrated a sophisticated fraudulent scheme apparent for several years, in violation of Panamanian Laws, and other laws such as the Banking Act, and others international laws of money laundering ('AML'), especially with correspondent banks in the United States and Europe. Federal Agencies of the United States have been informed of the apparent activities and possible violations of money laundering ('AML') of “Financial Pacific” and “Financial Forex”, and these top executives of these entities, Mr. Ivan Clare Arias and Mr. West Valdes.
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Financial Pacific: Trade mentor, trading psychology

  1. 1. 1Chapter 3.4Trading Psychology 0
  2. 2. In this section, you will learn about the following four psychologicalTRADING PSYCHOLOGY biases that may be affecting your trading results and what you canStock and CFD traders have to not only compete with other traders do to overcome them:in the stock and CFD markets but also with themselves. Often as astock or CFD trader you will be your own worst enemy. We, ashumans, are naturally emotional. Our egos want to be validated - we Overconfidence biaswant to prove to ourselves that we know what we are doing and that Contentswe are capable of taking care of ourselves. We also have a natural Anchoring biasinstinct to survive. Confirmation biasAll of our emotions and instincts can combine to provide us withtrading successes every now and then. Most of the time, however,our emotions get the best of us and lead us to trading losses unless Loss aversion biaswe learn to control them.Many stock and CFD traders believe it would be ideal if you couldcompletely divorce yourself from your emotions. Unfortunately that isnext to impossible and some of your emotions may actually helpimprove your trading success. The best thing you can do for yourselfis learn to understand yourself as a trader. Identify your strengthsand your weakness and pick a trading style that is right for you. 1
  3. 3. the one?” If you have then you need to be aware of thoseOVERCONFIDENCE BIAS tendencies.Overconfidence bias is an over-inflated belief in your skills as a stockor CFD trader. If you ever find yourself thinking to yourself that you Overcoming Overconfidencehave got everything figured out, that you have nothing more to learn The best way to overcome an overconfidence bias is to establish aand money is yours for the taking in the stock or CFD market, you strict set of risk-management rules. These rules should at least limitprobably suffer from an overconfidence bias. the number of markets you are investing in and the number of stocks or CFDs you are trading at one time, how much of your account youDangers of Overconfidence are willing to risk on any one trade, and how much of your accountOverconfident traders tend to get themselves into trouble by trading are you willing to lose before you take a break from trading and re-too frequently or by placing extremely large trades as they go for the evaluate your trading strategy.home run. Inevitably, an overconfident trader will end up eithertrading in and out then in and out of trades - churning their account - By limiting the number of trades you are willing to be in and theor risking too much on the one trade that goes bad and wipes out amount of risk you are willing to take, you can spread your risk outmost of the trader’s account. evenly over your entire portfolio.Are You Overconfident?If you want to know if you have any overconfidence tendencies thenask yourself “Have I ever jumped right back into a trade I had justbeen stopped out of not because I saw another entry opportunity butbecause I couldn’t believe I was wrong?”You can also ask yourself ”Have I ever put more on a trade than Inormally would because I was just sure this trade was going to be 2
  4. 4. ANCHORING BIAS Overcoming Anchoring The best way to overcome anchoring is to look at multiple time-Anchoring bias is a propensity to believe that the future is going to frames on your charts. If you usually trade on the hourly charts, takelook extremely similar to the present. When you anchor yourself too a look at the daily and weekly charts every now and then to seeclosely to the present you fail to see the dramatic changes that are where some of the long-term levels of support and resistance arepossible as currency pairs fluctuate and the underlying fundamentals and what the long-term trends look like. You should also take a lookshift. at the short-term charts to see when the short-term trends are reversing.Dangers of AnchoringAnchored traders tend to get themselves into trouble by convincing Broadening your perspective will help you to avoid anchoringthemselves that the current trend will never end and that a reversal in yourself to any one point.the fundamental strength of a particular company is next toimpossible. Alas they become emotionally attached to the previoustrend of a stock or CFD, and they continue to place trades that goagainst the new current trend. With each trade they lose more andmore money because they are bucking the trend.Are You Anchoring?If you want to know if you have any anchoring tendencies then askyourself “Have I ever lost money because I couldn’t accept that thetrend had ended?” If you have then you need to be aware of thattendency. 3
  5. 5. CONFIRMATION BIAS Overcoming Confirmation Bias The best way to overcome confirmation bias is to find someone, or aConfirmation bias is a propensity to look only for the information that group of people with whom you can speak about your trading.confirms the beliefs that you already have. For instance if you believe Hopefully the person, or people, with whom you speak about yourthe price of Google (GOOG:xnas) is going to go up, you will look for trading will not always agree with you. Talking with traders withthe news, the technical indicators and the fundamental factors that diverse perspectives and ideas will help you look at your trades fromsupport your belief. multiple angles. Sometimes you will strengthen your convictions by talking with other traders. At other times talking with your tradingDangers of Seeking Confirmation partner will cause you to change your mind.Traders who over-actively pursue confirmation of their beliefs tend tomiss key warning signs that would normally have protected them Keeping an open mind will help you catch new moves and avoidfrom unnecessary losses. In an attempt to build a case for their holding on too long to redundant beliefs.beliefs, traders miss the facts. Ultimately, this leads to them fightingtrends and losing money with each ill-conceived trade.Do You Seek Confirmation?If you want to know if you have any confirmation bias tendenciesthen ask yourself “How often do I look for signs that I may be wrongin my analysis?” If your answer is rarely or never then you may be aconfirmation seeker and you need to be aware of those tendencies. 4
  6. 6. they will trade with a mental stop-loss - a stop-loss level that theyLOSS AVERSION BIAS think about and promise themselves they will act on if the stock orLoss aversion bias is based on the theory that the pain caused by CFD ever reaches it. All too often, however, traders fail to act on theirlosing $1,000 is greater than the joy that comes from gaining $1,000. mental stop-losses. They let their emotions get in the way and theyIn other words fear is a more powerful motivator than greed. start rationalizing their choice to stay in the trade until it turns around.Dangers of Loss Aversion As soon as you enter a trade you should set your stop-loss order.Traders who fear losses are much more likely to hold onto losing Don’t give yourself any opportunity to be emotional.positions than traders who are able to accept short-term losses andmove onto other more-profitable trades. Holding onto losing positionsjeopardizes the stability of your portfolio because you will not onlyincur more severe losses but this behavior will also keep you out ofbetter investments.Do You Fear Losses?If you want to know if you have any loss aversion tendencies thenask yourself “Have I ever held onto a losing trade past the pointwhere I knew I should have sold because I hoped the stock pricewould turn around and wipe out my losses?” If you have, you need tobe aware of those tendencies.Overcoming Loss AversionThe best way to overcome a loss aversion bias is to trade withphysically set stop-loss orders. Many traders tell themselves that 5
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  8. 8. DisclaimerNone of the information contained herein constitutes an offer to purchase or sell a financial instrument or to make any investments.Financial Pacific Inc. and/or its affiliates and subsidiaries (hereinafter referred to as the “Financial Pacific”) do not take into accountyour personal investment objectives or financial situation and make no representation, and assume no liability to the accuracy orcompleteness of the information provided, nor for any loss arising from any investment based on a recommendation, forecast orother information supplied from any employee of Financial Pacific, third party, or otherwise. Trades in accordance with therecommendations in an analysis, especially, but not limited to, leveraged investments such as foreign exchange trading andinvestment in derivatives, can be very speculative and may result in losses as well as profits. You should carefully consider yourfinancial situation and consult your financial advisor(s) in order to understand the risks involved and ensure the suitability of yoursituation prior to making any investment or entering into any transactions. All expressions of opinion are subject to change withoutnotice. Any opinions made may be personal to the author and may not reflect the opinions of Financial Pacific.Please furthermore refer to Financial Pacific full General Disclaimer: 7