Comment Text:
i0-001
COMMENT
CL-01934
From:
Sent:
To:
Subject:
Chuck Fleming
Thursday, January 21, 2010 3:28 PM
secretary
Regulation of Retail Forex
Ref: Reducing Forex Leverage
Dear Sirs,
I, Charles Fleming, recognize the importance of regulation that
strengthens industry oversight. I also agree with policing and
regulating the industry, as was Congress' intent when empowering the
CFTC to create additional rules. But changing the leverage rules for the
Forex Markets is the equivalent of fleecing the investor on main street
to give to the wealthy.
I am US citizen, retired, tax payer investor and have several small
accounts with USA Forex Brokers. These accounts allows me to trade the
forex markets using 100 : 1 leverage*. My total risk to my account is
the actual balance on my account. Changing the leverage will not change
the risk to my account.*
However, it will greatly reduce my ability to trade, regardless of risk
and potential of the trade. When I take a trade, I have a stop loss that
I am willing to lose, as the trade goes my way I put my stop loss to
brake-even. Thus I have no risk to my capital but and I can acquire
whatever profit the market is willing to give me. With no risk to my
initial capital, I am free to search for new trading opportunities.
Trading this way I can grow my account 1.5 pct a day, and that's how I
make a living and eat. If the leverage is decreased from 100:1 to 10:1,
I will not be able to trade full stop.
I will be forced to accept the 0.5 pct the bank pays me on a yearly
basis for cash deposit and the bank will be the only one trading my money.
It is my understanding that only 5 percent of all investors make profit,
and don't take their accounts to zero. And that 5 percent survive
because they understand risk management. And no matter how much you try
you are not going to save investors who do not understand risk
management, but meanwhile you will screw up the marketplace that many of
us make a living. Your actions will exclude the small guy in favor of
the big institutions, banks and wealthy individuals, who will be the
only ones allowed to trade.
One last note, if I was a bank trading *other people's money* leverage
becomes an issue, but when you trade your own money, you are accepting
personal responsibility ..... And that is why I live in the US because I
have personal freedoms that you are threading to take away from me.
Best Regards
Charles Fleming, Fort Myers, Florida
