Your reply certainly did not lend more confidence towards your educated opinion as it left huge holes in your logic that weren't present in your original post. Honestly I believe you aren't here to debate anything but instead to argue for a proposal that an overwhelmingly large number of informed and successful traders strictly disagree with, and so I'm going to make my reply here short and final.
The biggest problem you still have with your argument is that it implies that it is better to shut down the retail forex industry in the U.S. because that is exactly what will happen if this proposal is passed and thus take all power away from the CFTC and NFA at regulating the U.S. retail industry since it would no longer exist! So instead of educating traders we just force them off shore or back into the furtures markets? The consequences from there on should be apparent form my last post.
Also, what part of your experience did you fail to realize the power of money management in controlling risk. How you can say "this isn't about money management" is beyond me. This is ALL about money management! No broker forces high leverage upon you, you get to choose your broker and your leverage. I use 100:1 and believe that to not only be reasonable but also fair. I choose when to buy or sell based on a solid strategy that includes measuring risk/reward ratios and over time it has paid off. Again I ask you to defy logic and explain how anyone would voluntarily choose to use 10:1 leverage if 100:1 was available off shore? Even congress agrees with us on this one as I posted a few weeks back
https://www.forexpeacearmy.com/fore...rned-cftc-retail-forex-leverage-proposal.html
But again, they are probably misinformed like all the rest of us dummy's who don't want to "play with the big boys". I hope to god you don't really mean that piphog!
Wow, so typical to quote Congress when it suits you, then call them idiots when you disagree. That was only one random congressman who stated that, so saying "Congress agrees with us" is total bull****.
So, basically your argument boils down to "we are worried that all these brokers will go overseas". First of all, these rules won't affect the real currency traders that are actually moving markets and able to take on high leverage, it will only affect the retail traders essentially because if youre going to speculate, theres no point in speculating on lots -- brokers give you access to bank feeds (and yes, the vast majority force you to trade 100:1, not let you choose...) so you can get buried and, like a good casino, they find ways to keep you coming. I think, mark my words, there will be a large-scale investigation into retail forex trading and people will be shocked at how much of the retail trading is virtual and no real trades are getting routed.
Like i said before, the industry has truly become nonsense when I can't tell the difference between my poker/casino site advertisements and forex broker advertisements.
Listen, like most traders, I am a free-market classical liberal. But the past few years have really demonstrated that if you don't set sensible regulations on people, it can create moral hazards that lead to systemic issues.
I am not surprised that no one on this forum has supported what I have said, and that is quite a shame. Move your accounts overseas if you want -- but just realize that after the measure passes, every major economy replicates what the US does, since the US is the leader. If you want to trade at high leverage, then learn about the futures market and speculate with those instruments instead of these ridiculous (and as I said I suspect, FAKE) lots markets feigned by "brokers".
If retail retail currency brokers in the US go bankrupt because of this, I say good riddance. And why the hell do you all care as a trader if you can just run overseas?
One last note, I think after all that has happened, it is hilarious that this idea that leverage is "all relative" is still pervasive! The same rationalization where people excused high leverage as a function of "relative money management" has existed since the Tulip bubble. CASINO CLOSED!