Simon Grinter – Someone I met in my Trading Career

Years ago, in 2008 I met some accountant turned forex trader who had a website called S3 forex and he seemed to be doing rather well. In fact, his old blog is still around, though it’s not been updated in ages:

If you scroll to the beginning, you can see that he started off doing very well making quite a bit of money on his trades.

He offered a paid forex seminar and I went along.. my post about it at the time is here:

During an evening surfing the web and looking at my website and seeing that people had been searching for the words “Simon Grinter” I thought I would search for it myself to see why he was suddenly coming up.

Shockingly, I found this link:

I am geniunely shocked reading this… it says that he was arrested on 55 accounts of fraud involving over £7 million of clients funds. In the short time that I knew Simon, I felt that he was a genuine guy and honest and I wouldn’t be surprised if in his quest to enrich others and himself that he fell into the trap of underestimating the pressure of investing other peoples’ money.

The thing about trading is that there is very little room for error. Just small changes in environment, circumstances, emotional states can change ones trading and trading results. Personally, I think trading for other people is a grave risk..  there are two outcomes in this.. you either are making money or losing money…  if you’re making money then all is fine and dandy but trading involves losses. Even if you’re trading system is the best in the world, you will encounter losses in your trading. It’s not abnormal to perhaps lose 5 or more trades in a row despite a trading system being net profitable.. the problem is, unless your investors understand this (and I bet most won’t), they will start to complain, threaten to take out their money and generally give you a hard time.

I wouldn’t be surprised if this happened to Simon Grinter.. a few losses meant that people started to complain. Feeling the heat, he probably ended up taking more riskier bets to try and make the money back and this is when it spirals out of control. From then on, there’s very little hope of getting back on track… the more money you lose, the more upset people will get and the more risk is undertaken.

People have asked me if I would be willing to invest their money for them and at this point in time, the answer is no. This is not a selfish answer but for the reasons above… I am now net profitable trading my own account but I don’t want to risk my progress to this point.  I am happy to give people pointers where I can from my personal experience but by no means would it be useful to everyone as trading is very personal.

I am sad to hear about what has happened to Simon – he did seem like a nice guy and his weakness perhaps was trading itself.

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Category: Blogging, Make Me Some Money Ideas, Trading