Email of the day (3)
Comment of the Day

February 03 2011

Commentary by David Fuller

Email of the day (3)

More on regulation, plus equal opportunity in the markets:
"Putting limits on single traders seems sensible if that will preserve the equal opportunity that markets offer to all sizes of capital. When I wanted to invest in blue chip Indian companies [in the] 1990s I found I could not afford it. Today anybody with a little money can participate through futures. While futures is believed to be highly speculative, it also offers somebody, even with a little capital, an opportunity to participate. The development of capital markets over the last 20 years means anybody, literally anybody, with any capital, can benefit.

"The capital markets are wrongly considered as a playground for the rich. Recently I started forex trading with a capital of USD100 - I can compete on equal terms with huge companies commanding billions of dollars. Is this possible on Main Street? Can I compete against Microsoft or Reliance Industries with $100? All you need is market knowledge-which is essential in any business. And $100."

David Fuller's view Good point, however, I suggest it is leverage which is dangerous in unskilled and inexperienced hands, not futures per se.

Trading is certainly empowering, for those who survive the learning curve. Most of us who can trade started young and because we had very little money. When you get knocked to the floor during the steep learning curve, it is easier to get back up if you are young.

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