Comment Text:
i0-001
COMMENT
CL-00138
From:
Sent:
To:
Subject:
Derek Enrique
Friday, January 15, 2010 10:54 PM
secretary
Regulation of retail forex
The purpose of this email is to voice my opinion on the proposed regulation of 10:1 leverage to
retail forex traders. I am against the proposed regulation as it severely limits the ability to profit in this
market without sufficient capital. As a result I would expect for a huge wave of retail traders, including
myself, to leave trading altogether which would hurt the industry in the U.S. Such a maj or cut in
leverage will also cause disciplined traders to leave the industry which is an unwarranted effect that such
leverage will have. This type of regulation is also severly damaging to firms that operate in the U.S. by
making them non-competitive to firms that operate internationally. You are also not allowing for a level
playing field for hard working Americans to create wealth for themselves and their families as other
individuals that live in other countries will have. The key to succesful trading with margins whether
large or small is to have proper money management techniques like entering trades with stop loss and
take profit points in place. Traders that lose money in this industry are not practicing prudent money
management skills. Regulation should be in place that requires individuals take a certified money
management course prior to executing a trade in this market. I think that if individuals are scared
enough, through taking a course that can show how easy it is to lose money in this market by not having
the proper money management techniques, they will not place such risky trades that are over
leveraged and be more patient to enter into properly calculated trades. Requiring a money management
course will then allow for succesful traders that operate with varying sizes of capital to continue trading
unaffected by the undisciplined traders.
Thanks for listening to my opinion,
Derek Enrique
