Comment Text:
i0-001
COMMENT
CL-06900
From:
Sent:
To:
Subject:
Don Guy
Friday,
March 12, 2010 7:22 PM
secretary
Regulation of Retail Forex
RIN 3038-AC61
Hi David,
This email is to protest the CFTC's proposal to reduce
maximum leverage in Forex to 10:1 and I have good reason for it...
I understand this is to help protect uneducated traders
from losing money too fast but it will also greatly inhibit
the money management strategies of experienced traders.
For example, my money management strategy super compounds on
profits and I begin my leverage at 10:1. On a winning streak,
my leverage peaks at over 50:1 with my principal totally
protected. Your proposed change would not only reduce my
income potential by a factor of 10, but could also make it
completely ineffective. To compensate for this, I would need
to deposit 10 times the capital with a forex broker, thereby
forcing me to risk 10 times as much principal by placing it
in the greedy, and often unethical, hands of a broker.
If you want to help protect traders who cannot afford to
take losses, simply require a higher net worth for them
to open an account. Do not impair the strategies of experienced
traders who have invested years developing their investment
strategies. This is simply counter-productive and there are
better ways to accomplish the ultimate goal.., protecting
the foolish. I really hope you make the right decision.
Thanks for your time.
Don Guy
