NFA Brochure all traders should read. (newbies especially)

[mack3]

coollz thanks for the info

[flockmaster]

Originally Posted by forexmaveric

........ The study suggested that you have better odds getting hit by lighting a thousand times in one year than making a small pot of say five grand turn into a fortune.
..................
.

how to understand the "five grand "??

Does "five grand" mean 5 thousand dollars???
TIA

[spEEDyE]

I thought that brochure was very helpful...gave me a lot of info that i was looking for


SpEEdyE

"I'm not a business man....I'm a business....maaaaan"
-JayZ

[jmichaelrush]

This is from the FXCM history:

NFA 05BCC00025 • SALES PRACTICE
12/13/2005 • FINE $110000

CFTC 04-80132 • CFTC INJUNCTIVE ACTION
04/01/2004 • PRELIMINARY INJUNCTION

[ArnieConan]

Originally Posted by flockmaster

how to understand the "five grand "??

Does "five grand" mean 5 thousand dollars???
TIA

Yes, a "grand" equals one thousand dollars.

[initialsBB]

The issues raised by NFA are certanly true, but i still think that brochure is biased as it does not paint the whole picture, it focuses mainly on the "bad" sides of Forex while not acknowledging their opposites. For example:

There is no exchange. Rates are established in a loose connection among banks and they vary.

True, but you always have the opportunity to compare the rates from your broker with those from other brokers. If you think it is giving unfair prices or is creating non-existing spikes you can change it.

Centralized markets can suffer from obsolete regulations or obsolete regulatory bodies or prevent trading in a way it does not suit them.

Forex is more risky then other businesses.

Yes, but here you have the opportunity to test-drive your strategies without risking any real money - privilige that does not exist elsewhere. It's not that you're getting into something obscure and unknown.

Some say this is recession-free business: your income does not depend on the state of the local economy. There is great likelyhood that in your lifetime your country will go through some sort of slow down.

You can't get fired: the way things are it will exist in the next 200 years.

It's just you and the market: your income does not depend on other people, connections or possibly corrupt administration/politicians.

You can lose all or part of your investment.

Any decent education about trading should prevent this from happening.

You can be a victim of fraud.

That's true for every activity in this world.

[TaylorMade]

That brochure is basically their training course on paper. Very helpful.

For the NFA site, I have a question. Some companies, like forex. com, have withdrawn their principles. Also withdrawn their membership and reregistered... is that something to be concerned about?

[cka6c]

Another good place to take a look before selecting a broker is the CFTC website, which has a section containing Financial Information of Futures Commission Merchants: http://cftc.gov/tm/tmfcm.htm?from=ho...=mktfcmcontent

You can view financial status of registered FCMs including their Net Capital amounts.