Jump to content

Recommended Posts

Thanks for posting this article... Just shows what a bunch of numpty's they are.. 

  • Like 1

Share this post


Link to post

Why oh why did we have to have this extra margin? why not just have guaranteed stops (which we pay a little bit more for) and these limits cannot exceed how much money is available in the spread betting a/c. No leverage allowed (funding of account via credit card has never been allowed, has it?) and no financial risk greater than the funds available to bet with. Seriously though. I would appreciate comments from experienced people as to why this was not an option.

Share this post


Link to post

it's a joke. Fixed odds betting terminals, lottery scratchcards  online bingo & casino etc. -  nothing   ..   but leveraged trading gets hit.

  • Like 1

Share this post


Link to post

Isn't that the whole point, Retail losing more and more money, the 10% have too live from somebody, the more they loose the better for them.

Share this post


Link to post
27 minutes ago, wizard1971 said:

Isn't that the whole point, Retail losing more and more money, the 10% have too live from somebody, the more they loose the better for them.

Expand on that? Interested.

Share this post


Link to post

Just to play '****'s advocate' for a moment, what say ESMA are looking forward to the failure of their new regulations in order to use it as an excuse to ban CFD's/SB's outright such as is the case in the USA and Hong Kong. Wouldn't put it passed them.  

 

 

Share this post


Link to post

@TrendFollower,  the US regulators used exactly the same arguments currently being used by ESMA, that too many retail clients lose too much money ergo they can't know what they are doing and so must be protected for there own good.

The resultant move by US retail clients after the cfd ban into futures and options with much lower available leverage resulted, as expected, in stripping out all the small and many of the medium sized account holders by having a much higher threshold for account size.

The way the EU likes to constantly push new regulations and considering the info in the article in the first post in this thread and remembering esma's complete disregard for the views of retail clients the long term future of cfd's and sb's would seem far from certain. 

 

 

Share this post


Link to post

@TrendFollower,

Doubt if many would agree with the need for more regulation as you suggest, that would be going down the esma pathway. No one starting up is not aware of the risk to their capital and most are aware that most new traders will blow one or two accounts on the way to profitability (the cost of learning). 

According to IG they only make on the spread and don't make like a bookmaker, taking the other side of the trade and hoping the punter will be the loser, so it's in their best interest that clients stay afloat and keep trading.

Something like 70% of new business startups fail, banks don't demand proof of success and experience before lending for a startup, if they did there wouldn't be any new business startups.

Available leverage has already come down substantially and this is the problem sighted in the article above. You can no longer start trading with an account of just a couple of hundred quid, you now need a couple of thousand but the new business startup failure rate remains the same at 70 - 80%, so in affect new traders are losing more money due to the regulations implemented in the name of client protection. 

 

Share this post


Link to post

One big difference with trading in the USA is the use of options, which I guess make share trading more accessible  I have seen, through watching webinars, how widely these are used

Share this post


Link to post

@TrendFollower,

Actually many businesses start up with nothing more than a business plan and a bank loan, experience is not an excluding factor but I see you have lost interest in esma which is the topic of this thread. If you wish to solely discuss business startups why not start a new thread on that subject.

Share this post


Link to post

@Kodiak, interesting article on hedging and interesting points in that article concerning tax implications. Eg not selling as shares pullback so don't pay capital gains/stamp tax but hedging with a cfd instead and if the cfd backfired can offset loss on any other gains.

Share this post


Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Member Statistics

    • Total Topics
      12,810
    • Total Posts
      65,781
    • Total Members
      86,756
    Newest Member
    ThomasTriebsees
    Joined 28/10/20 10:45
  • Posts

    • Hi, Can you please advise when is the last day to buy more TILS before settlement takes place? HL platform confirmed it is 30th October, can you please confirm the same? Thanks
    • The reason for the change is Rolls-Royce has announced a rights issue. The ex date is today. If you held shares from yesterday through to the open this morning you will be entitled to the following.  Rolls-Royce announces £2 billion rights issue The rights issue trading period for Rolls-Royce shares is now active, giving you the chance to buy new shares for the reduced price of 32p until the deadline date – 4pm (UK time) on 6 November 2020. You’ll be able to subscribe to ten new shares for every three you currently hold. This offer has implications if you have either long or short positions – learn how to get your preferred outcome below. How this affects your entitlement: You have a number of options depending on your original trade. If you have a long position, you can: ■Take up the rights issue by replying to this email (corporate.actions@ig.com) before the deadline, quoting your account ID and stating your wish to take up the rights. ■Do nothing and let the rights lapse – this is IG’s default option for clients ■Trade out of the rights by closing your position in the platform by 6 November 2020 – 4pm (UK time) If you have a short position, you can: ■Buy the rights back by closing your short position, before 6 November 2020 – 4pm (UK time), in the platform during the rights trading period ■Take no action. This will risk your rights being taken up automatically, depending on the result of the offer. This means that you may have a new short position opened on your account at the subscription price under the terms of the offer You’ll need to make your decision by 4pm (UK time) on 6 November 2020 – otherwise your entitlement will lapse by default. If you hold rights on multiple accounts, please reply to this email and state the relevant account IDs on which you wish to take up the rights. You'll also need to do this if your ISA is at the maximum allowance – please confirm that you'd like the new shares transferred to your share dealing account. If you hold shares in a share dealing or ISA account, please ensure the relevant one is adequately funded before this deadline date and maintained beyond 12 November 2020 – when the new shares will be booked on your account – or this election will lapse by default. All positions with guaranteed stops will be closed at the final price on the day before the ex-date. We’ll open a new position to automatically take up the above offer at an adjusted level and size. The monetary risk of the trade will remain the same. We’ll also remove all working orders on Rolls-Royce before the market opens on the ex-date. Please be aware that the information above could change. You can find quick answers to any questions about this rights issue in the FAQs.
    • You have to take what the market gives you, as that is impossible to know in advance you have to have a target and / or risk management strategy for trailing a stop - that's up to you to decide and fathom out what suits you Using a larger position and then dumping part of it at specific target points is perfectly fine and it can turn a losing position into a winning one to a certain extent  Take the chart below - This is a PERFECT swing trade run and I can confirm that I'm on moves like this all the time in my other accounts At the green line you would NOT have known that a trend was starting - BUT as a trader the set-up was typical of the start of a trend, so you take the trade Stop 1pt under the swing low point (green line), then you let the position just run, moving your stop to the last swing low point until stopped out As you can see the red line would have stopped you out - you would have got back in around the red line too, for the last sections Look at the points that resulted in - having set targets would not have got that result, which is why you need to have a set-up/method and stick to it (you can pyramid on EVERY swing low point too)  Obviously the below ONLY happens when the market trends - it goes skew-wiff in sideways markets The main USA markets are skewed naturally to the upside  - just take a look back from 2009 low to see how true this is and how much one could have stripped from the market using a set and forgot with a tiny tweak every now and then the chart below is the daily Nasdaq100 Every night I run a SCAN on my charting software that looks for Elliott Wave, Waves 2 - that scan picks up markets displaying the below formation to the green line - this formation is Gann's Secondary Reaction Kingfisher Plc had a pretty good run too of late as it works on stocks too To confirm a swing low the market HAS to CLOSE above the prior swing HIGH - then and only then do you move your stop to the most recently confirmed swing low point less 1pt and so on until stopped From a risk point of view on the Nasdaq100 this would have been 160pts and would have taken 2 attempts to enter, being stopped out on the 1st attempt - if placing stop under the reaction low point at the GREEN line it would have cost you 210pts in risk to make 2947 points This is a R:R of 14R using the 210pts as initial risk All you have to do is test EVERY EW 2 or Gann secondary reaction you find, so will work like this and others won't - BUT the ones that DO outweigh the others The one thing you should see is that WHEN the market does as expected after the 1st entry bar it does NOT retrace backwards to the high of the entry so as another safeguard you can shove your stop to breakeven virtually straight away or just below the high of the entry bar - up to you Then IF you're stopped its a very early indication that a trend might not be in play etc I'm willing to bet most people don't make 14R from a trade too The below set-up will only be achieved by the ultra patient and disciplined as most people can't simply wait  My 15 son traded this in his child trust fund this year
×
×