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ESMA and its implication

emotionaltrader
Aug 20 2018 at 08:09
99 posts
ESMA are just a bunch of kill joys, all they've done is take all the fun and excitement out of trading. You can't even call it trading anymore, it's more like investing.


All they're really doing is protecting their own, that small 1 - 10% - the elite!!!

NotyaBusiness
Aug 20 2018 at 13:34
19 posts
Pipperidge posted:
NotyaBusiness posted:
TiffanyK posted:
'Lowering the margin has nothing to do with protecting the little trader. It's a way to drive them away from trading (with a regulated broker).'

So yes driving them away is protecting them. No one will be made to believe that their $1000 can make them rich anymore so they will not even start, that way protecting their little savings.


So, driving the small traders to off-shore bucket shops is somehow protecting them? I don't get it.


The number of 'seasoned' small traders that don't make the cut to be 'Professional Trader' is insignificant compared to the number of rookies that would in 99% of the case lose their money.

Plus not all small traders think like you do.

I'm not a 'Professional Trader' and I won't go to unregulated broker. I closed with 145 pips profit last week on one of my accounts that has only £500. It resulted about net £27 in a week. If I can close a day with +1% I call it a successful day. Of course that doesn't happen all the time.

ESMA is protecting hundreds of thousands of people and no with small balance you won't be able to make a living so don't give up your day-job but you can make a solid base for college funds for your kids or whatever else on long term that beats every kind of savings offered by banks and can have fun, too.

The man who wants nothing is invincible.
BluePanther (BluePanther)
Aug 20 2018 at 13:34
1353 posts
emotionaltrader posted:
ESMA are just a bunch of kill joys, all they've done is take all the fun and excitement out of trading. You can't even call it trading anymore, it's more like investing.

All they're really doing is protecting their own, that small 1 - 10% - the elite!!!


ESMA is helping to support the gambling industry: poker machines, lottery, horse racing.

Keeping the poor poor.

niceGLer
Aug 21 2018 at 07:26
165 posts
BluePanther posted:

ESMA is helping to support the gambling industry: poker machines, lottery, horse racing.

Keeping the poor poor.


My experience about internet poker at micro stakes is that I wouldn't bet a dime on it. I think that the suspicion of internet poker being rigged is very much justified. At least the prices in forex trading can be verified. Internet poker, on the other hand, is that you can't verify if the cards are shuffled fairly to the players, even if the RNG has been audited by a third party company.

Probably it is true for the forex industry that as long as one is a losing trader things go well, even more so in poker. Sponsored players are different, and probably the game is fair for them.

I haven't tried sports betting, but probably that is a viable option along trading. Just because the results can be verified! Some people are making money with that, too.

niceGLer
Aug 21 2018 at 07:26
165 posts
PrincetonBoy posted:
It will be pretty tough to make some serious cash with only a $1k account but maybe that it the point. ESMA now makes people think that Forex trading is not a get rich quick scheme but something that can make a small bit of cash on the side and maybe , just maybe can make a bit more.


It IS tough but possible! I haven't done it but I know it. Check for the trading system data in myfxbook, and you'll see it.
From them, and from my experiences I've realized that what one needs is to go to the shorter time frames. I want to keep it more like a day job. Low fluctuations in trading account balances(volatility), etc.. Hardest part is staying aside when market conditions are against trading. Every time I hold my positions overnight I start losing.

A big obstacle for that kind of an approach are family obligations, a day job, or having an active social life.
Those things can be detrimental to trading, really!

togr (togr)
Aug 21 2018 at 10:25
4862 posts
NotyaBusiness posted:
TiffanyK posted:
'Lowering the margin has nothing to do with protecting the little trader. It's a way to drive them away from trading (with a regulated broker).'


Plus500 had 247,000 new depositors only last year. That broker has an over 80% of their clients lose money, which means nearly 200,000 of those new clients may have lost their money. And I believe other brokers, like Avatrade had similar stats.

So yes driving them away is protecting them. No one will be made to believe that their $1000 can make them rich anymore so they will not even start, that way protecting their little savings.



Nope, they will just lose their money elsewhere

togr (togr)
Aug 21 2018 at 10:26
4862 posts
niceGLer posted:
PrincetonBoy posted:
It will be pretty tough to make some serious cash with only a $1k account but maybe that it the point. ESMA now makes people think that Forex trading is not a get rich quick scheme but something that can make a small bit of cash on the side and maybe , just maybe can make a bit more.


It IS tough but possible! I haven't done it but I know it. Check for the trading system data in myfxbook, and you'll see it.
From them, and from my experiences I've realized that what one needs is to go to the shorter time frames. I want to keep it more like a day job. Low fluctuations in trading account balances(volatility), etc.. Hardest part is staying aside when market conditions are against trading. Every time I hold my positions overnight I start losing.

A big obstacle for that kind of an approach are family obligations, a day job, or having an active social life.
Those things can be detrimental to trading, really!


Nope. I have 3 kids, active social life and yet I am able to trade for living. With low and with high leverage. The trick is automatization. EA will always perform better than you. The core is good trading system.

arcadio
Aug 23 2018 at 11:09
2 posts
freaking ESMA is a killer for regulated European brokers. For now they are still ok because they converted some of their existing clients into Profesional clients. But as the leverage is only 1:10 on most instruments I dont think it will attract the newbies. I believe the future is Australian/offshore brokers.

jamesgwyther
Aug 23 2018 at 13:35
289 posts
arcadio posted:
freaking ESMA is a killer for regulated European brokers. For now they are still ok because they converted some of their existing clients into Profesional clients. But as the leverage is only 1:10 on most instruments I dont think it will attract the newbies. I believe the future is Australian/offshore brokers.


You can use JAFX, they are not affected by ESMA. Can still get 1:500 with them.

Pipperidge
Aug 23 2018 at 14:13
13 posts
arcadio posted:
freaking ESMA is a killer for regulated European brokers. For now they are still ok because they converted some of their existing clients into Profesional clients. But as the leverage is only 1:10 on most instruments I dont think it will attract the newbies. I believe the future is Australian/offshore brokers.

Or starting to trade cheap real stocks...

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