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Comment for Proposed Rule 75 FR 3281

  • From: Derek Enrique

    Comment No: 138
    Date: 1/15/2010

    Comment Text:

    Derek Enrique
    Friday, January 15, 2010 10:54 PM
    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