Sorry I already posted this in another thread, but am so infuriated that I need to vent in another.
The NFA is not looking out for the investor they are looking out for the brokers that our part of their association. Read this little bit about the NFA it makes sense:
http://nondealingdesk.com/showthread.php?t=2529
We shouldn't need "big brother"(NFA) telling us how to trade, we are all big kids and know the risk when we enter into the forex jungle, just like gambling. The only reason big brother would need to say something is if we were beating the
broker 
(the ones who write their pay checks). The
point is hedging works when used the right way, if they are so worried why don't they protect us from the martingale systems, or using fibonacci?!? HMMM.. bc/ hedging works and the brokers don't like it.
Here is a
quote from the compliance rule
“the customer pays carrying charges that +++ALWAYS EXCEED THE FUNDS IT RECEIVES++++. In a normal transaction, a customer receives “interest” on the
long position
and pays “interest” on the
short position . Since the two transactions are mirror images,
you would expect the receipts and payments to zero out. In practice, however, the
amount a customer receives on a
long position is always less than the amount a
customer pays on a
short position . Since these transfers occur daily when the positions
roll over, the loss increases continually over time…”
This is the hugest B.S. that I have read on paper!! Yes, you do get charged more on the carry then you get paid but thats common sense. If taking an opposite position is going to make or protect you money then you’ll take it and that WILLLL EXCEED the charges. AND you don’t always pay swap unless you carry the trade to the next day, SO this concern is not valid. If I am willing to pay what like about a pip worth of
swap to protect my profit then so be it thats part of the strategy!!
