ESMA risk warning

Trading risks

1. ESMA leverage limits

The European Securities and Markets Authority (ESMA) regulates CFD trading for retail clients in the EU and EEA. As of 2018 and reinforced through 2026, leverage limits are:

30:1 for major currency pairs (EUR/USD, GBP/USD, etc.)
20:1 for non-major currency pairs, gold, major equity indices
10:1 for commodities (non-gold)
5:1 for individual equities
2:1 for cryptocurrencies

Negative balance protection is mandatory: brokers regulated under ESMA cannot lose you more than your account balance.

2. Retail CFD account loss statistics

According to ESMA aggregated data from EU-regulated brokers, 74-89% of retail CFD trading accounts lose money. This statistic is mandatory disclosure on broker marketing materials. The loss rate varies per broker and is updated quarterly.

3. Educational content only

All content on The Trading Dojo (Path, Dojo, Arena, Sensei) is educational: general principles, methodology, market structure, trading psychology. We never recommend specific trades for specific persons. We do not provide personalized financial advice.

4. No CONSOB OCF certification

The Trading Dojo and its founders/senseis do NOT hold registration with the Italian CONSOB OCF (Organismo dei Consulenti Finanziari -- Albo Unico), which is required to provide personalized financial advice in Italy. For personalized advice, consult a registered financial advisor or licensed institution.

5. Past performance disclaimer

Past performance, including historical examples used in educational content, does NOT guarantee future results. Trading strategies that worked in past market conditions may not work in current or future conditions. Backtesting and historical analysis have inherent limitations including but not limited to: lookahead bias, survivorship bias, overfitting.

6. Sensei mentoring scope

Sensei mentoring is COACHING on method, journal review, system review, and psychology. Senseis are experienced practitioners but they are NOT licensed financial advisors. They will NOT tell you which trades to take. They will help you improve your method, identify your patterns, and document your edge.

7. Affiliate disclosures

Some pages on The Trading Dojo contain affiliate links to ESMA-regulated brokers. We may receive commission (FTD -- First Time Deposit) for new client referrals. This does not increase the cost to you. We only partner with brokers compliant with ESMA leverage limits and risk warnings. We do not partner with offshore unregulated brokers.

8. No guarantees

Trading is hard. Most retail traders lose money. The Belt System, Arena tools, and Sensei mentoring are designed to improve your METHOD, your DISCIPLINE, and your DECISION-MAKING. They do NOT guarantee profits. They do NOT guarantee any specific outcome. Your results depend on your discipline, capital, time horizon, and psychological constitution.

9. Risk capital only

Only trade with capital you can afford to lose entirely. Do not use rent money, food money, or emergency funds for trading. Do not borrow money to trade. Do not max out credit cards for trading capital.

10. Jurisdiction

This disclaimer is governed by Italian law. Forum: residence of the Holder. The Trading Dojo is operated by Valerio Diaco, P.IVA in assegnazione, Italy.

Last updated: 12 May 2026. This disclaimer is reviewed quarterly and may be updated to reflect regulatory changes (ESMA, CONSOB, MiFID II).

⚠ RISK WARNING TRADING RISK: CFDs are complex instruments with high risk of capital loss due to leverage. ESMA: 74-89% of retail investor accounts lose money trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Educational content only -- NOT personalized financial advice. The Trading Dojo does not hold CONSOB OCF certification for personalized advice.