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Politics of a US FX trader

  • #1
  • First Post: Oct 15, 2010 9:29am Oct 15, 2010 9:29am
Hi FF,

as you probably already know, as a US citizen we are now dealing with the frank dodd laws. This means 50:1 or 20:1 margin, and the ability to open up an offshore account has been taken away from us. This is unconstitutional, and we need to protest. While 50:1 is okay, and I can still trade profitably, it is ridiculous knowing that my counterparts in Canada, and the Netherlands are enjoying leverage as high as 400:1!

My friends we are now at a disadvantage. I don't know how to protest, I'm just a small retail trader, and so i ask you all for advice and general comments.

sincerely,
PanguFX
  • #2
  • Oct 15, 2010 10:51am Oct 15, 2010 10:51am
Check your rep's voting record here http://ourfinancialsecurity.org/2010...l-vote-record/

I converted the pdf file to Excel for easier sorting. The tabs at the bottom are the 13 pages from the pdf. You can cut and paste into 1 sheet if you like.

Make sure you know if your rep voted aye or against. If they voted for, vote against them in the next election. Shoot all of your reps, regardless of their vote, an email explaining what you are doing and why. Its high time for all of us to get much more vocal and focused.
Attached File(s)
File Type: zip AFR-HR4173-Final-Passage-and-Selected-Amendment-Voting-Record 1 .zip   49 KB | 356 downloads
  • #3
  • Oct 16, 2010 11:17am Oct 16, 2010 11:17am
Quoting panguFX
I'm just a small retail trader, and so i ask you all for advice and general comments.
Well friend, thats your problem right there. If you were bigger you could open an offshore trust/fund/corp, invest your money with it, then trade under the rules and regs of that jurisdiction.

Everything in life can be gamed. You just have to have the knowledge and resources to make it happen.
  • #4
  • Oct 16, 2010 12:47pm Oct 16, 2010 12:47pm
Forming an offshore Corporation is a headache I don't want to have to do but I will before I trade Forex Futures on the CME. I believe alot of USA based traders will move their money offshore now. I liked using a USA broker but I won't trade at huge disadvantage to rest of the world.
Quoting Darkstar
Well friend, thats your problem right there. If you were bigger you could open an offshore trust/fund/corp, invest your money with it, then trade under the rules and regs of that jurisdiction.

Everything in life can be gamed. You just have to have the knowledge and resources to make it happen.
  • #5
  • Oct 16, 2010 7:38pm Oct 16, 2010 7:38pm
Quoting Slack
Check your rep's voting record here http://ourfinancialsecurity.org/2010...l-vote-record/

I converted the pdf file to Excel for easier sorting....
Politics and contacting your state rep is a waste of time at this point. U.S. politics has "gone Holllywood' and one party is as bad as the other.
As DarkStar says "everything can be gamed" so do what you have to do and forget about "political process" and the years that you might wait for it to swing in your favor.
  • #6
  • Oct 17, 2010 12:29pm Oct 17, 2010 12:29pm
Quoting TradeRunner
Politics and contacting your state rep is a waste of time at this point. U.S. politics has "gone Holllywood' and one party is as bad as the other.
As DarkStar says "everything can be gamed" so do what you have to do and forget about "political process" and the years that you might wait for it to swing in your favor.
I understand what you are saying, but that attitude is exactly the type of fertilizer needed for the current system to thrive, and is no excuse for letting unethical/illegal behavior off the hook.
  • #7
  • Oct 19, 2010 5:18am Oct 19, 2010 5:18am
Hey guys,

Use that offshore broker list while you can, they will shut that door on you too... can't believe you guys wanted that organization... Criminals don't follow laws, they are going to rip you off regardless of the laws... thats why they are called criminals, they do not follow laws! creating an organization to ass fuck all the good law abiding citizens has never been a solution, ever read a history book? Or watch Star Wars? George was trying to spell something out for you guys: "And that is how democracy dies, with thunderous applause"

Anyway, Canadians are retarded too, Bankers stepped in and took control through legislation of our country same as yours, our money creating capacity went private (sound familiar?), we have billions of laws that cage the law abiding and are thoroughly ignored by the criminal. So I am not a nationalist, I hate us all equally. (The bankers I respect, they are fierce predators)

And since I feel your pain, when they finally close all the doors on you, go here http://www.offshore-protection.com/

Here is some data about doing it for free (for now) http://http://hunted.biz/
  • #8
  • Oct 19, 2010 6:34am Oct 19, 2010 6:34am
A nice 45 second clip of what we're dealing with and the origination of the Frank bill.
Inserted Video

theres your iq.

if it was about protecting me, they'd cap my losses and make my leverage higher.

I don't know if I should link an ad against him here, but I figure foreigners don't really know committeeheads that well versus a President, and youtube clips aren't always your best source for info, but everything you need to know in this case is searching for them. Especially if the two authors have been doing it for...40 years?
might be interesting across the pond

Yikes, edit. I didn't know the forums automatically embed video now. Well there's a political ad talking about all the bank bailouts he gave them and how the banks are his friends yada yada, there's a lot of good interviews on tv too if you search.
  • #9
  • Oct 19, 2010 8:42am Oct 19, 2010 8:42am
American citizens can open an account with an overseas broker. My broker called me last week and told me he was moving my account to America b/c of the new laws that have passed. I told him I moved my account to an overseas broker and he told me that was illegal. I called the CFTC and explained my situation to them. They told me it was not ILLEGAL for a US citizen to open an account with an overseas broker and I was on sound ground.
  • #10
  • Nov 18, 2010 12:36pm Nov 18, 2010 12:36pm
  •  Amb
  • | Joined Sep 2010 | Status: think outside the box. | 7 Posts
im new to forex (6 months), so u guys correct me if im missing something, im trading demo right now, but im planning to open a $5000 real acc.. Now my point is when u trade what really matter is how much u risk in every trade respect to your account balance.

Now the standard rule of risk mngmt is to risk 1 or 2 % per trade, so if i have $5000 in a standard lot and i want to risk 2% per trade ( $100) which is already pretty high, with a SL of 10 pips, then with $2000 at 1:50 lev. i control 100.000 which would be $10 a pip i will get out at 10 pips (SL) with a $100 loss.

So my question is what do i need 1:200,300,400 lev for??? suicide?
even 1:100 seems to high. Then only reason i imagine is some traders are so confident about their systems that they aren't afraid of loss...

If somebody can explain me this i will be thank full, again im new to forex,
and learnt more in FF than all books put togheter.
  • #11
  • Edited 12:53pm Nov 18, 2010 12:47pm | Edited 12:53pm
Your math is right...
the leverage helps if you aren't scalping just one currency pair.

The extra leverage helps if you:
diversify among different pairs ( at 1% or 2% risk per trade)
grid trade
scale in-out with multiple lots.

Just a suggestion, start with $1000 and keep $4000 in the bank.
You can thank me in six months .
  • #12
  • Nov 18, 2010 1:01pm Nov 18, 2010 1:01pm
Quoting Slack
Make sure you know if your rep voted aye or against. If they voted for, vote against them in the next election.
Do not vote. Just fuck the system.

http://www.youtube.com/user/stefbot#p/u/4/igbBItLemsM
  • #13
  • Nov 20, 2010 8:09am Nov 20, 2010 8:09am
Quoting Amb
Now the standard rule of risk mngmt is to risk 1 or 2 % per trade, so if i have $5000 in a standard lot and i want to risk 2% per trade ( $100) which is already pretty high, with a SL of 10 pips, then with $2000 at 1:50 lev. i control 100.000 which would be $10 a pip i will get out at 10 pips (SL) with a $100 loss.

So my question is what do i need 1:200,300,400 lev for??? suicide?
even 1:100 seems to high. Then only reason i imagine is some traders are so confident about their systems that they aren't afraid of loss...

forget about a 10 pip stoploss, you will never be successful using such a small stop.

200, 300, 400 leverage is so you don't have to put so much money at risk. Suicide is putting in $5000 and later finding the broker is a crook or worse. You could start out with $1000 -1500 this gives you up to a 5 times better chance of being successful because it prevents you from being stupid. But the CFTC never thought of that, tells you who they are sleeping with.

Money Management is the name of the game and it starts with you.
  • #14
  • Nov 20, 2010 8:49am Nov 20, 2010 8:49am
Quoting panguFX
Hi FF,

as you probably already know, as a US citizen we are now dealing with the frank dodd laws. This means 50:1 or 20:1 margin, and the ability to open up an offshore account has been taken away from us. This is unconstitutional, and we need to protest. While 50:1 is okay, and I can still trade profitably, it is ridiculous knowing that my counterparts in Canada, and the Netherlands are enjoying leverage as high as 400:1!

My friends we are now at a disadvantage. I don't know how to protest, I'm just a small retail trader, and so i ask you all...
!?

If you did your research, which I highly doubt you did, you will realize that you can trade at any US bank offering a FX as a product and your problems are solved. Non fifo, hedging allowed, margin up to 100:1. Banks are not restricted to the same rules and regulations as retail FX brokers.
  • #15
  • Nov 20, 2010 10:49am Nov 20, 2010 10:49am
Quoting akhtergroup
!?

If you did your research, which I highly doubt you did, you will realize that you can trade at any US bank offering a FX as a product and your problems are solved. Non fifo, hedging allowed, margin up to 100:1. Banks are not restricted to the same rules and regulations as retail FX brokers.
And how will be the liquidity going only from one bank?

If you don't have a lot of cash good services will be not affordable to you.
  • #16
  • Nov 20, 2010 10:58am Nov 20, 2010 10:58am
Quoting Rikers
And how will be the liquidity going only from one bank?

If you don't have a lot of cash good services will be not affordable to you.

go to dbfx or citifx....only need 10k to open account
  • #17
  • Last Post: Nov 22, 2010 1:56pm Nov 22, 2010 1:56pm
I must be looking the wrong places because I'm not finding any that match your claims. Would you be kind enough to name them?
Quoting akhtergroup
!?

If you did your research, which I highly doubt you did, you will realize that you can trade at any US bank offering a FX as a product and your problems are solved. Non fifo, hedging allowed, margin up to 100:1. Banks are not restricted to the same rules and regulations as retail FX brokers.
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