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ESMA and its implication

emotionaltrader
Sep 02 2018 at 07:22
99 posts
DO NOT BE FOOLED BY THOSE OUT THERE PROMISING RICHES FROM TRADING!!!

Introduction of lower leverages by ESMA and other regulatory bodies means it's no longer possible for someone starting out with a small amount of capital to attain the dizzy heights that others have.

Think about it you now need £500,000 to be considered as a PROFESSIONAL TRADER and to have access to higher leverages, basically we have all been shut out of the market by the few.

The game has changed for the masses - it's no longer a FREE MARKET!!!

vontogr (togr)
Sep 03 2018 at 11:15
4862 posts
Let us stick to the topic!
So how did ESMA affect your trading?
I had for example move my stb account to different broker to keep it making profit
while Maxik account is doing well even on 1:30 leverage.

Pipperidge
Sep 03 2018 at 11:27
13 posts
togr posted:
Maxik account is doing well


Profit - 44.25% DD - 7.48%
You call that well? It's more than well, IMHO.

vontogr (togr)
Sep 03 2018 at 12:24
4862 posts
Pipperidge posted:
togr posted:
Maxik account is doing well


Profit - 44.25% DD - 7.48%
You call that well? It's more than well, IMHO.


so far so good
the con does not trade often so I need to trade for a year to get good base of trades

Voket EA (voketexpert)
Sep 04 2018 at 06:54
25 posts
togr posted:
Let us stick to the topic!
So how did ESMA affect your trading?
I had for example move my stb account to different broker to keep it making profit
while Maxik account is doing well even on 1:30 leverage.


I am a small investor who is happy with present regulation. Don't understand why ESMA wants to change it. Proposals for new rules are more confusing, unfair and will not benefit anyone.

Pips are absolute aphrodisiac, so trade with your brain not your lust. Forex will always be the same.
Pipperidge
Sep 04 2018 at 07:25
13 posts
voketexpert posted:
I am a small investor who is happy with present regulation. Don't understand why ESMA wants to change it. Proposals for new rules are more confusing, unfair and will not benefit anyone.

We've discussed this already. It is of benefit for the big (MM/DD) brokers.
Other than that - the traders and small STP brokers are getting shafted.

niceGLer
Sep 04 2018 at 07:44
165 posts
Please explain me why it is no longer possible to make big $ out of a small trading account. If the leverage is around 1:30, and the true leverage is, say, 10 and the risk per trade is 5%, it takes a couple of years to gain $20´000. Let´s imagine that in the beginning the monthly gain is 20% and in the end it will be 10%, which allows a modest standard of living even in Europe. One should deposit a couple of hundred of bucks, and know what one is doing. Of course things take time.. ESMA is a nuisance, but I don't see it as such a big obstacle UNLESS somebody explains me exactly why. Is that so heavily dependent on strategy used?

niceGLer
Sep 04 2018 at 07:45
165 posts
I should have added something:
Maybe, just maybe, people have unrealistic expectations what is doable?

emotionaltrader
Sep 04 2018 at 11:03
99 posts
Anybody thinking they can open an account with £100 or a £1000 and think that they can make a living from FOREX under the new leverage restrictions is dreaming. Got more chance of making money just turning your computer off and saving money on electricity!!!


Said it before, it can no longer be considered as trading unless you're one of the few, unless you're a millionaire already!!! Probably better off just investing in some shares!!!

emotionaltrader
Sep 04 2018 at 11:21
99 posts
These leverage restrictions imposed by ESMA and other regulatory bodies - Japan & US are a breach of Equal Opportunities and Class Discrimination.


TRILLIONS OF $'S exchanges hands daily and basically these regulatory bodies are saying that there's not enough to go around, basically they want to keep it in the hands of the few. Furthermore, these leverage restrictions are upside down, it should be lower leverage restrictions for the big players e.g. High Frequency Traders, Hedge Funds, and Millionaires etc. The reason being it would provide STABILITY in the financial markets.


XTX Markets turns over billions each day - $150bn Daily volume across asset classes with just 97 employees. This is the way things are going in the real world with the rise of algorithms, HFT and automation. The livelihoods and wellbeing of people are being sacrificed for the sake of automation and to cut costs. Think about it, robots don't answer back, they don't need sick leave and they don't need holidays, but best of all they don't need paying.


Instead of moving forward the world is sleepwalking to disaster and if anything it's just a repeat of the Victorian Era where the few prospered and the masses ate cake!!!


That's where we're heading, might not be in my lifetime but that's where it's heading!!!


Forget about Daily Volumes it's just algorithms since they account for approx. 70% or more of the market!!!



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