Comment Text:
i0-001
COMMENT
CL-01782
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[email protected]
Thursday, January 21, 2010 11:48 AM
secretary
Public Comment Form
Below is the result of your feedback form. It was submitted by
([email protected]) on Thursday, January 21, 2010 at 11:48:21
commenter_subject: Regulation of Retail Forex
commenter frdate: 1/21/2010
commenter_comments: You did not post my first comments which I wrote
quickly on the 14th. Who knows how many other
peoples comments have not been posted. Here was my
e-mail
Patrick Henry one said, "Liberty or give me
death!" before being lead off the gallows.
Literally, I find myself in the same situation with
the new regulation proposal of 10:1 leverage on the
retail forex. Why are laws made but to protect the
liberties and privileges of the American people. I
do not see how this law protects the free markets
of capitalism or the priveleges of the american
people rather it circumscribes and is rules for the
sake of rules and once again stepping on the
"little man."
I wish to convery to you that such proposal would:
1. Without warrant strip the investor of the
freedom to make his own financial decision and
basically put the government in the role of a
mother telling the "investor baby" what he can and
cannot do. This labors under the delusion that
"average Joe" does not know what to do with his
money so the government must tell him.
2. Steps on the little guy. A 25k retail forex
account would be needed to start trading. I am
actually fortunate to thave that income. Most
average Joes do not have that much disposable
income to trade. Which leads to the sad statement
they hear all of their lives. "In order to make
money, you have to have alot of money." This would
limit the trading of forex to only the wealthy an
attack on class.i0-001
COMMENT
CL-01782
3. The investor would stand to lose more under this
new regulation. Since the investor would be
opening a much larger account than say a $1,000 or
$500 account. The investor would stand to lose
more, essentially at least 20 to 25k. If the
investor is going to lose his money, he will lose
money wheter he has $1,000 or $20,000 this is
simply augmenting the amount of unneccessary risk
in his forex account. I have an acquaintance who
unfortunately trades in the stock market and he
requires that inane amount of capital to have his
trading account, so he took out a second mortgage
on his house to get the stock trading account.
Which of these is more detrimental to the economy I
ask you? The man who took out a second mortgage on
his house and lost 20k or the man who lost $700 and
learned forex wasnt the market for him.
4. Makes U.S. forex brokers non-competitive- Forex
traders will simply open up accounts overseas where
larger leveraging is allowed. I wouldn't be
surprised if only a handful of retail forex
accounts remained in the states with an inane 10:1
leverage. Why put such a large amount of your
capital in a trading account at once when it is an
uneccessary in another country.
5. Takes the American dream out of America- Mine
is a true rags to riches story. My mother passed
away while I was attending college. So while I was
going to school pursuing an architectural
enineering major I was having to take care of my
two sisters and get an extra job waiting tables to
make ends meet. I took a stock options course to
learn how to trade for extra income, but realized
the incredible high capital startup requirements.
And thats when I ran into forex. The whole summer I
went to barnes and noble took my notebook and read
Technical Analysyes of the financial markets by
murphy, forex made easy, Profiting with forex, etc,
I opened a demo account, paper traded for a few
months, opened up my first account with $500. Its
been 4 years and through careful study I've made a
little over $200k in extra income to help care for
my sisters and pay for my degree. I, a waiter, was
able to take advantage of the markets and use
fundamental and technical analyses to generate
extra income for my family. Thats the American
dream that Anybody can make it here.
6. Why is there no cap to leverage on banks in this
market and just the retail investor- If its
education that you are worried about, I for one
have definitely put in the time and study to bei0-001
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CL-01782
able to use proper risk management to not lose my
~vhole account or overleverage myself. I ~vould be
much more open to a mandatory money management
course or forex education course your broker had to
provide you sponsored by the cftc at a reasonable
cost of course so as to not stamp out average Joe
reaching the American dream. Not to exceed $500 for
the course.
7. Spits in the face of freedom and says your too
stupid to kno~v ~vhat to do ~vith your money.
commenter_name: Nicholas Saulsberry
commenter_addressl : 1208 College Park~vay # 1025
commenter_city: Le~visville
commenter state: TX
commenter_zip: 75077
commenter~hone: 214-862-7559
