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Obama’s Dodd-Frank Act - How can a US Resident use better trading conditions.
Montana

Member Since Jul 19, 2011  3 posts Alexey (Montana) Sep 13 2011 at 12:57
As we all know, the US reforms have leaded to crucial disadvantages for traders and investors – trading conditions became much more unprofitable for the vast majority of small and mediocre traders: leverage was reduced to 1:50 when trading strategies used by many traders requires 1:200 and even higher.

Please share your thoughts and experience on how to sidestep this sinister limit - help hundreds US residents to find better trading partners!

http://Broker-Rates.com
Splexin

Member Since Apr 11, 2011  190 posts Splexin (Splexin) Sep 13 2011 at 17:50 (edited Sep 13 2011 at 17:54 )
Montana posted:
    As we all know, the US reforms have leaded to crucial disadvantages for traders and investors – trading conditions became much more unprofitable for the vast majority of small and mediocre traders: leverage was reduced to 1:50 when trading strategies used by many traders requires 1:200 and even higher.

Please share your thoughts and experience on how to sidestep this sinister limit - help hundreds US residents to find better trading partners!


I'm sorry but I can't help but laugh at 'sinister limit.'

'Trading strategies used by many traders requires 1:200 and even higher' <---- Oh yeah...you mean gambling, arbitraging or scalping??

Honestly I do not like additional regulation any more than the next guy, but 1:50 leverage is PLENTY enough to keep a trader profitable. I actually trade on 1:10 leverage (most positions 1:5) and forex is my full-time job. And I started with $1500. I do on occasion risk more by employing 1:20 or 1:30 leverage, but anything more than 1:50 is really foolish and risking too much. Do you know how much most institutional traders risk per trade? 0.25%. Not even an entire one percent! High leverage is just a brokers way of luring inexperienced or foolish traders into betting the farm.

I've learned that risk management, not high leverage, is the key to remaining profitable. But this is my opinion only...every trader has his/her own strategy that they must employ to make money. A trader MUST be able to ADAPT to changing trading conditions (such as these) because after all, the financial markets change every day!

I 'adapted' by sticking to a profitable trading system and managing risk properly.

Cheers

Everything should be as simple as it can be, but not simpler.
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