You guys want regulations!? If you want regulations why not go to the one thousand and one other options you already have. Get a financial adviser, go to Vanguard, Fidelity, or Schwab. Go to trading platforms that require licensed strategy leaders. In my opinion C2 is unique because it has no regulations! That is why I like it so much. You can find a talent from a different pool. Yet that is also why I tell my friends who aren’t into investing as much to go invest with Vanguard or Schwab. I worry that they may not be aware of the risks when they see a strategy that earned +15% annually. They may not be able to interpret and understand how much leverage was actually used.
In my opinion the only thing that needs to change in regards to regulations is increasing the awareness of how much leverage is used in in a given system. If they do that then maybe I wouldn’t be so afraid to tell friends about it. The problem is that many subs are gamblers and think that C2 puts less responsibility on them when it is actually more. I am fine with that because C2 is one of the few places that does that.
I don’t promote any regulation to C2 just more clear warnings, not legalese warning. Warnings like, “this developer has had this account leveraged at 20 times before. A 5% drop in the market which happens X number of times a year on average could make you lose all your money.” Warnings about money management would be good to. For example, “Warning you have 50% of your account tied to one strategy that holds just two stocks. You should try and have no more than 10% of your account devoted to any one stock.” Another could be, “This developer has sold naked calls before. If the stock he did this on had gone 10% in the wrong direction he would have lost X dollars. If the stock had gone up X% the account would have been wiped out.” These are obviously examples and could come in the form of graphs or warnings etc. Many traders don’t need them, but to expand the user base more warnings would be good for the ones that don’t know how much leverage a leader is using when they buy futures, sell naked options, or concentrate their holdings too much. Has any strategy that has not had any one position equal more than 10% of the portfolio, has not used margin, and has not sold naked ever “blown up” on here. I highly doubt it. Gambling trade leaders only exist because their are gambling subscribers - all of which want regulation when they go bust. Give warnings ahead of time and if people still want to gamble here rather than at the Casino that is that, but don’t eliminate the talent pool of unlicensed yet good traders from C2.
