High leverage and small deposit.. Suicide?

Apr 12, 2010 at 17:49
Przeglądane 2,286
18 Replies
Uczestnik z Aug 29, 2009   22 postów
Apr 12, 2010 at 17:49
Intentionally deposited so little fund just to show trading technique and what can be acheived and what risks are encountered during trading. Especially a LIVE trading.

Leverage - 1:500, depo - 26$

https://www.myfxbook.com/portfolio/niko1312/24424

skype: niko1312
Uczestnik z Oct 07, 2009   1 postów
Apr 12, 2010 at 20:54
that's seems a good system, it's high risk, but you have a good % of good trades.
Uczestnik z Aug 29, 2009   22 postów
Apr 13, 2010 at 17:42
May be.. but the question is that the Dealing Centers are intentionally increasing leverage to give traders more chanses to loose the capital. :(
Uczestnik z Mar 22, 2010   52 postów
Apr 14, 2010 at 16:30
reason why i like oanda, they give a max of 1:50 only, with no minimum trade. giving 'hope' to a small time trader like me :)
God is great all the time
Uczestnik z Apr 24, 2010   4 postów
May 14, 2010 at 05:51
' High leverage and small deposit.. Suicide? ' - it's all about trade management...
lithurol@
Uczestnik z Apr 20, 2010   814 postów
May 14, 2010 at 07:36
Nothing to do with leverage. Matter of how good your skill or EA.
50 USD, leverage 1:100/

https://www.myfxbook.com/members/ForexSeeker/brainiac-50-micro/28366
Information is Gold when come to organised.
Uczestnik z Apr 11, 2010   33 postów
May 14, 2010 at 12:30
Without high leverage a deposit that small is pointless. The fate of your capital depends on how you manage it.
Uczestnik z May 04, 2010   6 postów
May 26, 2010 at 06:58
High leverage is only suicide if you open more than you can handle. Provided you know much you have available and don't over commit yourself, it'll work to your advantage.
Uczestnik z May 16, 2010   1 postów
May 27, 2010 at 11:35
Agree with jaguarxj1

I also have leverage 1:500 and I only deposited 5$ and my funds are increasing fast (hope they dont stop :) )
Uczestnik z Oct 28, 2009   1424 postów
May 27, 2010 at 11:48
Pulling the trigger when the money is about the price of a meal is a lot easier than when your bank is up to the price of a house.
11:15, restate my assumptions: 1. Mathematics is the language of nature. 2. Everything around us can be represented and understood through numbers. 3. If you graph these numbers, patterns emerge. Therefore: There are patterns everywhere in nature.
Uczestnik z Sep 08, 2009   8 postów
May 27, 2010 at 19:54
The leverage is not the problem. The problem is more how much you risk in your account. If you risk only 5% or lower leverage won't be a problem. You can charge the maximum avaible in one direction while limiting losses. This would mean tighter stop!!

Main problem remain always draw down in account
Uczestnik z May 30, 2010   2 postów
May 31, 2010 at 17:10
High leverage can make you loss or gain more. It all depends on the trading style and also the discipline, Money management,
pip2cash
forex_trader_8139
Uczestnik z Mar 04, 2010   423 postów
May 31, 2010 at 17:21
for conservative trader, low leverage always better.

SIM
Uczestnik z Mar 04, 2010   3 postów
May 31, 2010 at 21:31
as some ppl mentioned before, the problem is not the high leverage..its all about the consistency when your account is growing bigger and bigger...most ppl simply risk to much at some point and are wondering why their system fails when it comes to larger amounts of money...so what it comes down to is MM ..nothin more nothin less...;)



Uczestnik z Sep 04, 2009   879 postów
Jun 01, 2010 at 04:21

AfricanBombata posted:
    as some ppl mentioned before, the problem is not the high leverage..its all about the consistency when your account is growing bigger and bigger...most ppl simply risk to much at some point and are wondering why their system fails when it comes to larger amounts of money...so what it comes down to is MM ..nothin more nothin less...;)






Regards your high DD u risking to much as well....🙄
Uczestnik z Mar 04, 2010   3 postów
Jun 01, 2010 at 07:22
hehe....unfortunatly your right.However, i never said that i have a good MM....that´s why i´m testing my strategies on a demo account....cause i am one of those guys who are havin problems when the depot reached a certain level, i´m aware of that....but that does not make the points i mentioned wrong, does it? ;)
myfxpt
forex_trader_43716
Uczestnik z Aug 06, 2011   345 postów
Aug 07, 2011 at 10:53
I use 1:400 leverage, but risk 2% or less per trade. Why 1:400? Because it allows me to trade a broader range of pairs at any given time without draining my capital. The simple MM rule that makes this practical is to NEVER open a new trade until the first trade hits breakeven and is locked-in with a trailing stop, at which point risk is eliminated. Only then do I look for another opportunity.
Uczestnik z Jun 09, 2011   186 postów
Aug 08, 2011 at 11:04
high leverage with proper money management will work towards a trader's advantage
http://www.freeforexrebates .info
Uczestnik z Sep 04, 2010   14 postów
Sep 01, 2011 at 11:30
I have a trading account like that and it helps me to be more accurate in trading and have a strict money management system in play. I eventually want to trade larger amounts but the biggest killer of all accounts must be emotion, not leverage. Leverage does limit your flexibility to trade time frames and i found trading on the 1 hour time frame is better for smaller account sizes and higher leverage.

Trading small time frame should also not make you blind towards higher time frames that gives clearer signals. Smaller time frames allows for larger stop loss areas with the least amount of risk. I believe if you can master the ability to increase a small account by at least 10 % in any given time frame, you can achieve this with larger sums of money and have the patience and control to be consistant. Consistancy is after all the holy grail of any trader.
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