Comment Text:
i0-001
COMMENT
CL-07848
From:
Sent:
To:
Subject:
bryans 1620@aol. com
Tuesday, March 16, 2010 12:18 PM
secretary
Foreign Exchange 10:1 Leverage Rule
I would like to voice my concerns of the proposed leverage rule limiting foreign exchange brokers to provide 10:1
leverage to it's customers.
Let me start by saying that I understand and respect the reasoning for such a rule. Many would-be traders are
lured into the foreign exchange market with hopes of quick profits due to the leverage most brokers now provide.
As we all know this is a double edged sword and most traders fail.
I have been in the forex business for quite some time, over four years. I am not one of those who quickly
deposited my hard earned money and quickly lost it. I have, for the time I've been involved in the business (and I
do treat it like a business), been researching the market and developing my own custom software in hopes to find
an edge. My hopes are that I can, in the near future, see my strategies become profitable, providing myself and
my family a steady second income. I have been methodical in my approach and have only used demo accounts
and small real money test accounts to develop my trading software and strategies. I have not been reckless or
utilized a 'gambler's mentality' in approaching this business.
I am telling you my personal story only because I think I represent the majority of retail foreign exchange traders;
responsible, methodical, disciplined. There those few in any business that are reckless and have dreams of
overnight success. Go to Las Vegas for example and you see the gamblers lose all their money looking for the
big score. While on the other hand many people make a living from gambling by researching, having a system
and sticking to it. There were many who got sucked into the hype of real estate investing a few years back and
many unseasoned would be investors nearly lost it all as the market crashed. While again, on the other hand,
many skilled RE investors had the foresight to know the market could not sustain itself and used due caution.
I think in your efforts to protect a few from their own ignorance and greed, the proposed rule would unnecessarily
punish the majority of traders, the ones who approach it in a responsible manner. As I don't have access to large
amounts of capital, the 10:1 leverage would, quite simply, put me out of business and eliminate any chance of my
long term success as a responsible trader.
I do hope you will consider my opinions and many others like me and leave the leverage rules as they currently
stand. I believe the current 100:1 leverage is adequate to keep retail traders like me afloat while reducing the
damage done by reckless traders.
Thank you for your consideration and have a great day,
Regards,
Bryan Smith
