I'm a former registered investment advisor and was on the board of the National Futures Association as a CTA representative on the self regulatory body for the futures industry. I also served as an arbitrator on cases where clients were suing their futures brokers. In my experience over 45 years of trading, investors in the US have been handicapped in providing themselves strategies and
Leveraged and inverse funds allow me to gain exposure to leveraged and short positions without having to take on leverage myself. I use inverse ETFs to hedge my long positions and to express a bearish view on the market. QQQ is down roughly 20% YTD, but I have been able to hedge my long stock positions and profit from this decline through the PSQ, the inverse of QQQ. I do not want to take on
A SIMPLE SOLUTION I'm appreciative that FINRA and the SEC have considered the market implications of complex products and how they are offered to the investing community. There are certain products (i.e., leveraged and inverse ETF's) which investors should understand in more depth. That said, it is not appropriate for a third party to arbitrarily decide whether investors are capable of
Comments: Since the time that humans had a path to follow or street to cross, there has been an element of risk in so doing. Saber-toothed cats, banditos, darkness, wrong turns, errant drivers, psychopaths, malevolent humans and natural calamities all posed a risk to a successful journey. Those alerted to the risks generally navigated, while those not so, were either lucky, or not. Personally, I
Continuing Education Planning
FINRA,
I have been trading in the stock market for decades. I hope you would agree that cash is a position if you are investing in the stock market. Sometimes, like now in the current market, a large cash position may be advantageous to maintaining ones wealth.
Likewise, the use of leveraged ETFs in certain sectors or even inverse or leveraged inverse ETFs in other sectors could be positions as
Hello-
As someone who invests in their limited free time, I still have more than enough information at my fingertips to research where I put my money. Limiting my ability to invest in leveraged funds does nothing more than keep leverage out of my hands, while concentrating these sorts of valuable financial tools in the hands of those who don't need to worry about how they'll be
This is yet another example of regulation overreach, and as always, it will hurt worst the people who are already most disadvantaged. Ill keep investing as I want. I have a high net worth, and Ill pass your tests. Im motivated, educated, and investment savvy. I can continue to get 2-3% more per year through my judicious use of leveraged funds, which when compounded over decades makes an enormous
Hello - I am contacting you regarding recent communication I have received from my broker that may restrict my ability to invest in leveraged and other higher risk assets. I have spent the last two years studying these securities and understand them very well. I use well thought out risk management and diversity to ensure I would never lose a large sum of money in a major market move. For
It was shocking of knowing that our regulators plan to limit our right to invest in leveraged and inverses funds. Certainly, we understand the risk of investing and the choice of risk and reward should be left to the investors. The investment choices and the type of investments should be open to all, but not just a few privileged, i.e. the wealthy ones, and the investment firms...etc. As an