High leverage , High risk ?

Adribaasmet posted:

TeraPips posted:
It's very important to have good or acceptable risk level, not really wise to get into high risk without good experience.

Yes mate, risk reward ratio is very much important. On the other hand, I see overtrading is one of the most common problem here! By the way, in my trading I never go for more than 2% risk ratio in my per trade.

korson posted:
Higher the risk higher the reward and vice versa.

jnimc posted:
well, it's not always true - most of the big guys trade without risk... cos if in trouble they are bailed out 😄

Adribaasmet posted:

jnimc posted:
well, it's not always true - most of the big guys trade without risk... cos if in trouble they are bailed out 😄

Mate, what did you mean by without risk? Because, I know; there is nothing like 100% in Forex, it’s all about probabilities. Thanks in advice.

korson posted:
Higher the risk higher the reward and vice versa.

RichPort posted:
That is a lot of the problem here. People assume high leverage is high risk and low leverage is lower risk but it is all about how you set up a trade and manage your account. I dumb trader can wipe out an account on low leverage just as easy as high leverage

togr posted:

RichPort posted:
That is a lot of the problem here. People assume high leverage is high risk and low leverage is lower risk but it is all about how you set up a trade and manage your account. I dumb trader can wipe out an account on low leverage just as easy as high leverage

Exactly.
Closing losing trade is OK. But when this happens too often due to low leverage you wipe the account as well.

CoolKimOne posted:
$100 x 1000 = 100,000 . Could you afford to lose that?

togr posted:
Guys,

you need to separate 2 terms
1. account leverage 1:1 - 1:3000. Even with account of 1:3000 you can trade safely - not overtradings, limiting risk by using SL.
2. used leverage - if you overtrade your positions you will lose regardless the leverage of the account, though on low leverage it will be slower.

Cons - with lower leverage you make less profit, you can't make profit

pipsKeeper posted:
All that was posted before here is really true. I have some question. Why it's more often when brokers suggest beginners to start with a big leverage? The issue is beginner will lose more with the leverage of 1:1000. I suppose that it's better to start with small (1:100 for example).

RichPort posted:
That is a lot of the problem here. People assume high leverage is high risk and low leverage is lower risk but it is all about how you set up a trade and manage your account. I dumb trader can wipe out an account on low leverage just as easy as high leverage

millerwe posted:

RichPort posted:
That is a lot of the problem here. People assume high leverage is high risk and low leverage is lower risk but it is all about how you set up a trade and manage your account. I dumb trader can wipe out an account on low leverage just as easy as high leverage

totally agreed. people need to understand how money management works and operates that's the main issue. leverage can result into huge profits if money and risk management are done right.

TeraPips posted:

pipsKeeper posted:
All that was posted before here is really true. I have some question. Why it's more often when brokers suggest beginners to start with a big leverage? The issue is beginner will lose more with the leverage of 1:1000. I suppose that it's better to start with small (1:100 for example).

Agree with 1:100 but make sure you have basic knowledge of using it through demo and be aware of your psychology issues which should not interfere trading. You won't want to blow account quickly (with overtrading or revenge trading which is common).