Comment Text:
i0-001
COMMENT
CL-03679
From:
Sent:
To:
Subject:
James Bailey
Monday, January 25, 2010 2:11 AM
secretary
Fw: Comments regarding CFTC proposal
Dear Sir:
I hope Ido not insult you by asking. But do you know antything about the FOREX market. The reason
why I ask this is. Being retired since 1/1/1994 with a nest egg of $430,000.00 total savings and IRAs.
during the Clinton Admistration I did well being heavely invested in various Mutual Funds. These
investments were suposed to be safe. The report from some market expert said another Great Depression
in my lifetime could not happen because of all the goverment controlls installed. So I trusted and put
my faith in my goverment and had my investments in mutual funds at 80%. I forgot to mention I was 57
years old when Iretired. In a way I was forsed into retirement by a company that if you turned down
their offer you understood by the way they intended to hire cheap labor to replace us you might be
discharged soon after with out the incentative. 6 years away from Social Security is no fun when you
dont have a pay check coming in. One day after I retired I was watching a TV program whose guest was
the CEO of Sony Corporation. He was asked, If their bussiness was hurt by the dollar devaluation.
Ansered no. When the dollar is low we buy propertys in America. Also at times we do very well on the
Forien exchange Rates buying and selling the dollar. Hearing this I thought I wish I could have the
operertunity to trade the foreign exchange. I study history and have read biorgraphys of the most recent
presidents. The book that most destrubed me was the autobiography of George Walker Bush. It opened
my eyes about things happening now and in the past. A pertenate fact that his son was allways in some
sort of a bind constantly and his father had to get him out of. I will not go into all of them here as it
would some kind of long. I will say this though CBS fired Dan Rather for telling the truth for once.
When little George became president I felt that was a bad day for the country and most espeachaily the
retired people of this great land. A lot of us believed under the Clinton leadership that the futher was
strong and would continue. When little George took over office His attitude did not seem to be of a
serious man and one that had good judgement. When 9/11 happened my savings & IRAs totaled
$635,000.00. About a year and a half after $240,000. A margin loan was almost at call and many other
problems was worrying me. I could see no other way out I was going broke and could not get by on
social security, things slowly improved though until June 2007
At that time I had $495,000.00. The Alarm starting going off when the DOW was eraticly changing
huge amountsin Joly 2007 my account started spiraling down at a very fast rate. Late August the
account was down $95,000.00 1 instructed my broker to dump all investments into cash and stay on the
sidelines until recovery started back. Sorry to say he did not do as I instructed until I noticed the account
was going rapidly I was loosing account balance at near $1000,00 a day. I knew if there was another
terriorest attack I would loose the rest of my retirement money so after cashing in I bought anunitys that
only gain around 6 to 8% my account now is holding around $200,000.00. After 9/11 I thought this can
happen over & over again so I better not put my faith in Mutual funds for the duration of my life any
more. I am very Industrous and thought about many different ways to generate income, at 73 years old I
see a lot of retired people working at Wall-Mart and other stores at minimum wage I suspose. I thought I
should be able to do beter than that. About three years ago I bought the 4XMadeEasy Program by
Wizetrade. At this date I feel I could trade sucessful enough to start investing some of the money I have
left. After studdying for 3 years and practice paper trading ( a monopoly like money used to measure the
sucess or failure of your strategy) After attaining a sucess rate of around 65% and using money
management to control my losses to no more than 2% of total account value. I invested $9,000.00 in MB
Trading accounts. My goals are set very conservily and are based on the facts supplied by Wizetrade.
The software I purchased is trend software that shows how the pairs are doing now and with several
days history on the 180 minute chart and a lot more on the three higher time charts. A good trade is hardi0-001
COMMENT
CL-03679
to find and can happen at any time of the 24 hour day. Missing the start of the trade by 30 minutes most
times is to late to enter the trade. So my exptations are based on 65% of the time I can make 10 pips on a
trade that I have correctly interpeted The chart so usualy I only risk the minium amount of 1 lot $100.00
and because of voility have to set a stop loss greater than my profit possabilitys which mens I will watch
every trade and if the trade goes south try to get out with a small loss Starting off I will only try to
average 10 pips per day and 50 pips per week.I hope this venture is a winner else I don't have any hope
of living a good life for my remaining years. I am attaching the e-mail that alerted me to this desasterous
regulation.
44
yours truly
James C, Bailey
yours truly
James C, Bailey
..... Forwarded Message ....
From: MB Trading
To." [email protected]
Seat-" Thu, January 21, 2010 9:37:16 AM
Subject." Comments regarding CFTC proposal
Dear MB Trading FX Client,
On January 13, 2010, the CFTC announced proposed new
regulations concerning retail foreign currency transactions.
Many of the proposed changes would implement important
consumer protection regulations, which MB Trading firmly
favors. However, one of the proposed changes would
radically lower Forex leverage from 100:1 to 10:1 for all
NFA and CFTC regulated Forex firms.
Under the proposed rule, here are some examples based on
trading 10,000 USD:
Currency Pair I
Current Margin
I
Proposed Margin
!
Requirements*
Requirements
Explore the
MB Trading Difference:
Unique ECN for FOREX,
award-winning stock trading
technology, and 24-hr
support, all at low
commissions:
FOREX
$2.95 per
100,000 USD traded
STOCKS
$4.95 per tradei0-001
COMMENT
CL-03679
EUR/USD
$142
$1,420
GBP/USD
$163
$1,630
USD/JPY
$100
$1,000
*Current margin requirements based on rates as of January 19th, 2010
The impact of these new requirements for a FOREX trader
could be significant. Under existing rules and based on
present day exchange rates, a $10,000 account could buy or
short just over 700,000 EURUSD. With the new proposed
rule, the same account would only be able to buy or short
70,000 EURUSD, significantly impacting the results of the
trade.
MB Trading recognizes the importance of regulation that
strengthens industry oversight. We agree with policing and
regulating the industry, as was Congress' intent when
empowering the CFTC to create additional rules. However,
we don't agree with policies that might clearly disadvantage
firms in the United States which in turn disadvantage you,
the client. We encourage you to voice your individual
opinion directly to the CFTC. The Public Comment Period is
open for 60 days from the date of publication, which was
January 13, 2010. You may find the entire draft proposal
here: CFTC.Gov
and you may contact the CFTC directly by
sending an email to [email protected]
with "l~egulatien
of I~etail I=ore×
''
in the subject line.
up to 10,000 shares
$0.95 per contract
plus exchanged fees
OPTIONS
$0.95 per contract
No minimum
Want to know more about
MB Trading?
Visit our website.
Thank you for your support.
Ross Ditlove
CEO
MB Trading
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Disclosure:
Securities products are offered through MB Trading, member FINRA, SIPC. MB Trading Futures, Inc. (MBTF) is CFTC registered
FCM and member of NFA. MBTF offers execution and settlement services for futures based products, as well as offer off-exchange
foreign currency (FOREX) products through MB Trading. Trading in futures, options and forex is speculative in nature and not
appropriate for all investors, investors should only use risk capital when trading futures, options and forex because there is always
the risk of substantial loss. Account access, trade executions and system response may be adversely affected by market
conditions, quote delays, system performance and other factors.
MB Trading
11926
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I El Segundo, CA 90245
www.mbtrading.com I 866.628.3001i0-001
COMMENT
CL-03679
