To use chat, please login.
Back to contacts

High leverage and small deposit.. Suicide?

b5213
May 27 2010 at 19:54
8 posts
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

Tony (tonythailand)
May 31 2010 at 17:10
2 posts
High leverage can make you loss or gain more. It all depends on the trading style and also the discipline, Money management,

SIM
pip2cash
May 31 2010 at 17:21
423 posts
for conservative trader, low leverage always better.

SIM

AfricanBombata
May 31 2010 at 21:31
3 posts
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...;)




pc8multifx (pc8multifx)
Jun 01 2010 at 04:21
879 posts

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....🙄

AfricanBombata
Jun 01 2010 at 07:22
3 posts
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? ;)

Gary Sharp myfxpt com
myfxpt
Aug 07 2011 at 10:53
345 posts
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.

tigpips
Aug 08 2011 at 11:04
186 posts
high leverage with proper money management will work towards a trader's advantage

http://www.freeforexrebates .info
pietpip
Sep 01 2011 at 11:30
14 posts
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.

Please login to comment .