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ESMA and its implication

Voket EA (voketexpert)
Sep 04 2018 at 11:26
25 příspěvků
niceGLer posted:
I should have added something:
Maybe, just maybe, people have unrealistic expectations what is doable?
being long term trader is what it is my friend.
Pips are absolute aphrodisiac, so trade with your brain not your lust. Forex will always be the same.
vontogr (togr)
Sep 04 2018 at 12:38
4862 příspěvků
voketexpert posted:
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.
Exactly. There is the only winner - offshore brokers - whose can take our capital and disappear now.
vontogr (togr)
Sep 04 2018 at 12:39
4862 příspěvků
niceGLer posted:
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?

You have no idea what are you talking about.
20% a month for years with 1:30 leverage is pure nonsense.
emotionaltrader
Sep 04 2018 at 12:48
100 příspěvků
All ESMA have done with the introduction of these leverage restrictions is create a two tier market with one set of regulations for one group and another set of regulations for the other. The market is more favourable towards the few rather than the many which basically means it's not a market at all!!!

emotionaltrader
Sep 04 2018 at 12:49
100 příspěvků
niceGLer you're dreaming if you think that you can make a living from trading a few hundred quid on these leverages. Like I said you've got more chance of making money by switching off your computer and saving money on the electricity @ 0.20 -0.30 KWh!!!
emotionaltrader
Sep 04 2018 at 12:51
100 příspěvků
emotionaltrader a moment ago
….furthermore the Daily Standing Charge for electricity is £1.80 - £2.90!!! Seriously, you'll make more money just by switching off your computer than you'll make trading £1000 at 1:30 Leverage. Better off investing in Penny Shares!!!

Oops - £100
emotionaltrader
Sep 04 2018 at 13:54
100 příspěvků
Let's get this into perspective. Before the leverage changes I was capable of turning £100 into £400 in a day, I was capable of turning £100 into a £1000 in a week which I did on 4/5 occasions.

Now at 30:1 leverage I've got more chance of making money by turning of my computer and saving money on the electricity!!!

Electricity unit rate: 17.25p per kWh
Daily standing charge: 18.90p per day


Like I said: There's more excitement watching the grass grow outside my window or watching paint dry.

That's what ESMA have achieved One rule for the rich and another for everybody else!!!
emotionaltrader
Sep 04 2018 at 14:03
100 příspěvků
Basically those at the top don't like the idea that small traders like myself are capable of turning £100 into something more substantial, they don't like the fact that small retail traders like myself could start out with £100 and make a living. That's why they've change the leverages, that's why they've introduced leverage restrictions because their JEALOUS!!!

Furthermore, they're worried that small retail traders like myself will make them the rich few look like a bunch of idiots!!!

….and that's the TRUTH!!!
emotionaltrader
Sep 05 2018 at 07:48
100 příspěvků
Small retail traders have been made the scapegoats for the financial crisis of 2008. Instead of finding real solutions ESMA and other regulatory bodies have punished us.


Furthermore, these leverage restrictions are upside down, it is the wealthy who should be trading at lower leverages to create STABILITY in the financial markets.


….but then we've no need to worry because next time bankers can blame algorithms or sticky finger!!!
emotionaltrader
Sep 05 2018 at 07:48
100 příspěvků
I don't care what anybody says, these leverage restrictions are blatant CLASS DISCRIMINATION!!!
emotionaltrader
Sep 05 2018 at 07:54
100 příspěvků
emotionaltrader 1 Hour ago
Small retail traders have been made the scapegoats for the financial crisis of 2008. Instead of finding real solutions ESMA and other regulatory bodies have punished us.


Furthermore, these leverage restrictions are upside down, it is the wealthy who should be trading at lower leverages to create STABILITY in the financial markets.

It's not small retail traders who move markets, it's the Big Players e.g. HFT's, Banks, Hedge Funds etc and yet it's small retail traders who are being punished!!!

emotionaltrader
Sep 05 2018 at 10:22
100 příspěvků
I'd like somebody in authority to come on this forum and justify these leverage restrictions introduced by ESMA and other regulatory bodies. Don't say it's about protecting small retail traders because I know it isn't. We already had NEGATIVE BALANCE PROTECTION IN PLACE.

It's like saying that some sections of the community can drive a car and others can't because one section is more prone to accidents more than others etc.

Furthermore, if these leverage restrictions are to protect traders then why haven't they introduced restrictions in gambling e.g. Sports Betting etc.


All these new restrictions mean is that small retail traders have to trade more and risk more in order to have any chance of making a living!!!
niceGLer
Sep 05 2018 at 10:31
169 příspěvků
togr posted:
niceGLer posted:
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?

You have no idea what are you talking about.
20% a month for years with 1:30 leverage is pure nonsense.

So, then please explain me why is it not working?
I am thinking of a situation (right in the beginning), where the trade lot size is 0.01 lots, and the true leverage is around 10, and the leverage per account is said 30. Let's say the account has a balance of $100. It is fairly possible to average 10 pips daily by short trades with a duration of less than 8 hours. That makes $20 monthly (in the beginning). Yeah, there are caveats like when to increase the lot size, and sticking consistently on working strategy. Also, there is no life other than this (or learn programming MQL4/5). But then, with an EA approach the situations can change, which quickly can render the currently working EA obsolete.
niceGLer
Sep 05 2018 at 10:40
169 příspěvků
I didn't check what would the true leverage be with the conditions I described (took it from my memories of my trading) but my point is that it should be possible, and if this is not possible then please explain why.

jamesgwyther
Sep 05 2018 at 10:50
289 příspěvků
emotionaltrader posted:
I'd like somebody in authority to come on this forum and justify these leverage restrictions introduced by ESMA and other regulatory bodies. Don't say it's about protecting small retail traders because I know it isn't. We already had NEGATIVE BALANCE PROTECTION IN PLACE.

It's like saying that some sections of the community can drive a car and others can't because one section is more prone to accidents more than others etc.

Furthermore, if these leverage restrictions are to protect traders then why haven't they introduced restrictions in gambling e.g. Sports Betting etc.


All these new restrictions mean is that small retail traders have to trade more and risk more in order to have any chance of making a living!!!

Would be useful.
emotionaltrader
Sep 05 2018 at 10:52
100 příspěvků
niceGLer 10 Minutes ago
togr posted:
niceGLer posted:
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?

You have no idea what are you talking about.
20% a month for years with 1:30 leverage is pure nonsense.

So, then please explain me why is it not working?
I am thinking of a situation (right in the beginning), where the trade lot size is 0.01 lots, and the true leverage is around 10, and the leverage per account is said 30. Let's say the account has a balance of $100. It is fairly possible to average 10 pips daily by short trades with a duration of less than 8 hours. That makes $20 monthly (in the beginning). Yeah, there are caveats like when to increase the lot size, and sticking consistently on working strategy. Also, there is no life other than this (or learn programming MQL4/5). But then, with an EA approach the situations can change, which quickly can render the currently working EA obsolete.

Cos you're talking £3 a day that's £24 per week that is IF AND A BIG IF all your trades go in your favour. That's hardly enough to make a living from.

You'd have to be winning 100% of the time!!!


Before you could start a small trading account with £100 and turn that into £400 @ 500:1 leverage within minutes, hours, within a day. At least at the end of the day you had the option whether to take profit or not.



ovisun
Sep 05 2018 at 10:57
439 příspěvků
niceGLer posted:
I didn't check what would the true leverage be with the conditions I described (took it from my memories of my trading) but my point is that it should be possible, and if this is not possible then please explain why.

togr is right.
Trade yourself live with an account of 100$ at leverage 1:30. Stop talking and start doing. After two-three weeks come here again and tell us about the 'nice' experience how you lost your account.
niceGLer
Sep 05 2018 at 12:15
169 příspěvků
ovisun posted:
niceGLer posted:
I didn't check what would the true leverage be with the conditions I described (took it from my memories of my trading) but my point is that it should be possible, and if this is not possible then please explain why.

togr is right.
Trade yourself live with an account of 100$ at leverage 1:30. Stop talking and start doing. After two-three weeks come here again and tell us about the 'nice' experience how you lost your account.

I am currently experimenting with an account in similar conditions, true leverage being exactly 30. I wouldn't judge it as a failure right away. One should select the spots really carefully.. One problem arises, when it is time to increase lot size, and probaböy that is when the ESMA restriction hurts. Recommendation of trading in hgher time frames is BS -that is my opinion.
ovisun
Sep 05 2018 at 13:23
439 příspěvků
niceGLer posted:

I am currently experimenting with an account in similar conditions, true leverage being exactly 30. I wouldn't judge it as a failure right away. One should select the spots really carefully.. One problem arises, when it is time to increase lot size, and probaböy that is when the ESMA restriction hurts. Recommendation of trading in hgher time frames is BS -that is my opinion.

Please link your account here in myfxbook for us to see the evolution of such account.

niceGLer
Sep 05 2018 at 13:33
169 příspěvků
emotionaltrader posted:

Cos you're talking £3 a day that's £24 per week that is IF AND A BIG IF all your trades go in your favour. That's hardly enough to make a living from.

You'd have to be winning 100% of the time!!!


Before you could start a small trading account with £100 and turn that into £400 @ 500:1 leverage within minutes, hours, within a day. At least at the end of the day you had the option whether to take profit or not.



I don't claim that it is possible to make living with a couple of hundred dollars or pounds. Maybe you had a different strategy than I. I am relying on compounding effect. Yes, the strategy used should have a high winrate.
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