Comment Text:
i0-001
COMMENT
CL-00631
From:
Sent:
To:
Subject:
Curt Pittman
Tuesday, January 19, 2010 1:58 PM
secretary
Regulation of Retail Forex
Dear Sirs / Madames
Please accept this email as my personal vote to leave the current forex leverage as it
stands at 100:1.
If you were to change the leverage to 10:1 as currently proposed, it would become
impossible for me to continue to trade forex as I would need too large of a trading account
(in excess of $100,000) to be profitable.
Further, by changing this regulation, you will effectively drive the retail forex markets to
Europe where such restrictive regulations do not exist. In doing this, you will further
contribute to the declining US economy by destroying US companies and jobs (Not that
some don't warrant being forced to close).
Many of the proposals are a positive thing as they will further help to prevent fraud and
better protect the consumer, but reducing the leverage to 10:1 will simply destroy the retail
forex market.
I understand many people have lost money trading forex, but I suspect it can be directly
attributed to their lack of educating themselves properly about forex trading as well as their
personal greed. A better solution would be to try and reduce the marketing hype associated
with forex trading. I receive many emails a day promoting forex trading and how anyone
can be successful by just investing a few minutes per day etc etc etc. Nothing could be
further from the truth. VVhile not complicated, it does require significant effort on the part of
the investor to be successful.
A 95% failure rate in forex trading to me indicates several things:
1 - the marketers are doing a fantastic job
2 - people do not take trading seriously and want huge rewards for minimal effort.
3 - marketers are not necessarily telling the truth. They have become masters of hiding,
distorting and/or vastly downplaying the risks involved.
To me, making the marketers / promoters more accountable for wild "pie in the sky" claims
would be a far better avenue to pursue.
Assuming knowledge of trading is limiting here is one suggestion.
People are able to "back test" trading strategies, meaning you take historical data to test
your idea. I see this all the time and it is often in the very very fine print that companies will
indicate that these magic systems have never been tried in real trading.
This is misleading in a number of ways as it is easy to manipulate the" system" to perform
well using known data. Further, to a person who has never traded, the wording can be
misleading.
So, it would be nice to see the wording of these claims better clarified to something as
blunt as "This system has not been tried in live trading ...... "i0-001
COMMENT
CL-00631
It would also be nice if the marketers / promoters were forced to actually have to verify
their claims via live trading with clear and concise results.
Just my opinion.
Thank you for your time in this matter.
Curt Pittman
