My father made tremendous returns trading in the mid 90s in the markets. A time came when his broker (a well reputed at that time) started replicating his trades & to such extent that he started punching his trades before my father's orders. (1/4)
After earning good profit for few weeks he got the hang of it & started trading on his own, making huge profits for consecutive months. With boost in confidence he increased his quantity 10 times with which he initially started. (2/4)
Then came the day when the strategy (stock pair trading) backfired. My father who had worked on it for couple of years & is a very shrewd trader was already out of it. But the broker instead of cutting the loss, was adding in disbelief only to blow up his account at the end.(3/4)
The broker had half baked knowledge of the strategy with no practical experience. He went after the results & not the actual knowledge. Such traders are all over the place who just want to know what big traders are doing without understanding the intricacies of trading. (4/4)