I trade with 500:1 leverage which improves the chances of me being able to make a living. Lower this leverage to 30:1 and I have no chance. I might as well take out a savings account because I'll be lucky if I make 10% a year.
High leverage investing is a 'get rich quick' component that some people use to make money in the short term, but it's just as equal to call it a 'lose money quick' investing strategy.
As a United States base investor at a retail level, I would be limited to 1:50 leverage, and at the retail level I am required to abide by the FIFO rule (first in, first out).
And yet I am able to generate a reasonable return on my investment capital because I don't take massive risks and I leave my emotions out of trading.
And while YES I would agree that changing maximum leverage available from 1:500 down to 1:30 might seem extreme at first, however you need to take into consideration who that leverage change is really impacting.
It impacts HIGH LEVERAGE traders.
If you avoid trying to double your account every trade with high leverage trading, and you use smart money management, then you should be able to make a reasonable income from investing.
There is a huge difference with someone trading 1.0 lots on a $100.00 account, and someone trading 1.0 lots on a $100,000.00 account.
With 1.0 lots against a $100.00 account using high leverage, and the trade suddenly goes really bad, your account is going to be at risk for margin call, stop out, loss of funds, and this will happen very quickly. When that happens the investment capital will be gone. Boom. MONEY GONE.
With 1.0 lots against a $100,000.00 account, you would be able to absorb the loss without much risk to the account.
Big deal. No fancy dinner on Friday. BOOM. Pocket change gone.
Losing $100.00 in trading on a $100.00 account is a total loss of investment capital.
Losing $100.00 in trading on a $100,000.00 account is nothing other than just a bad trade that was closed out at a loss of $100.00
Do you see what I am saying here?