PipStop

It's really a shame that there isn't an online version of Currency Trader Magazine available, but we all make due, I guess.

As always a subscription is free and it is only delivered in electronic (PDF) format, so visit the website and get your free subscription.

This month the headline articles are:

- Currencies in Q4: What will drive the market?

- Breakout!: Euro, dollar reverse roles

- Yen Crosses on the Move

- The Dollar and the Crude

- Dissecting the Swiss Franc Carry Trade

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And skimming through the edition, I'd like to share one article I found interesting, and we'll find out how effective the CFTC will be in regulating the Forex market.

CFTC on the Currency Beat (as found on page 40)

The CFTC announced the creation of a retail currency fraud task force to investigate fraud in the offexchange forex market. This follows the enactment of the Food, Conservation, and Energy Act of 2008, which contains a section called the “CFTC Reauthorization Act of 2008,” clarifying the commission’s authority over foreign currency transactions.

“This announcement sends a clear signal that the CFTC is on the beat,” said Michael Dunn, CFTC Commissioner and head of the agency’s Forex Education and Outreach Task Force. “Our continued and increased cooperation with law enforcement authorities will help put these forex dealers where they belong — in jail.”

According to the CFTC, since 2000 the agency has filed nearly 100 actions totaling $560 million in penalties and $450 million in investor restitution. The fraud in many cases constitutes misrepresentation, false advertising, and “Ponzi” schemes. This enactment will allow the CFTC to commit further resources for the identification and prosecution of fraud in the retail market, and will create new registration requirements for forex dealers, as well as impose minimum capital requirements for futures commission merchants and retail dealers.

The CFTC claims investors need to be wary of offexchange forex trading, which “is at best extremely risky, and at worst, plagued by outright fraud.”

Everyday brings something new for me.

It's been an extremely busy last week, and I've blogged infrequently - mostly because of a college football game I attended in Seattle on Saturday. It was a controversial finish to the No. 15-ranked BYU Cougars and the Washington Huskies' game and it reminded me of the fact that no matter what there are always going to be those who are displeased with an outcome and will do everything they can to voice their displeasure.

Quite honestly here at Trading Post, we've seen a very positive evolution in how we tackle issues, and I don't have a problem addressing things head on. I actually like to have the odd difficult question because many times it helps us to come up with better solutions.

The following email I received was (and I'll withhold his name) someone who obviously is frustrated with legacy issues either with Trading Post or own trading experiences. Demanding is one thing, being rude is another. In this case this trader is being pretty demanding about information on the Elliottician trading software that Trading Post has been letting traders know about.

So what your telling me is you don't know?  If you are reselling this product I would suspect some one there is doing their due diligence and finding out if this actually produces results.  Please find out and foreword any proof of reliability.  If you don't have it I would like to know that also.  I went on the site you directed me to and what I found was a disclaimer stating that all results are Hypothetical unless stated otherwise.  Can I ask is that what they are going by?

The following is part of the response I sent and falls in line with the philosophy that not one singular solution is meant for ALL traders. It's an impossibility now matter how "wonderful" a system might be.

You can do your own due diligence to see if they hold water, because I have done it, as much as I can.

If you're looking for someone who has used this for 2 years with great success and is willing to open their trading report to you, then I'm not the one for you. If you base all your trading purchase decisions on "verifiable" proof that something works, you're setting yourself up for failure, as many systems out there can show you "verifiable" proof through trade statements that indeed that particular system has worked for someone who has used it - it, again, DOES NOT mean you will be successful with it.

The style of the system may or may not appeal to you despite how great it may perceived to be by others. Look at everything you see with an eye of skepticism, but this is no reason to attack Trading Post. We will always be clear with you and with anyone who wants to become a better trader.

If I am on a crusade, and sometimes I feel like getting in a tank for this, it's to let everyone know to stop seeking the sliver bullet system that will constantly churn out profits for them. People just don't want to listen - they want to know that what they buy has made money for someone else and will make money for them.

And please, if anyone finds the Golden Goose, please let me know, I'd like to have a piece of it myself.