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High leverage , High risk ?
Mitglied seit Feb 22, 2011
4573 Posts
Nov 15, 2018 at 14:36
Jingyi posted:
A beginner will lose it all on 1:1000 or 1:10. I think there should be enforced use of demo account for 1 month before open live account and a video course on risk management that all traders must watch before account is opened. That would help people a lot more
Even after ESMA which limits leverage drastically there is no decrease of losing traders.
Mitglied seit Aug 27, 2017
875 Posts
Nov 19, 2018 at 11:11
Imamul posted:
For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.
Same to me! I think, most of the retail traders who are aware of money management issue they are playing with 1:100 trading leverage.
keeping patience.......
Mitglied seit Aug 27, 2017
875 Posts
Nov 25, 2018 at 08:14
Mohammadi posted:
Trading with high leverage in demo account is right decision , because leverage contains always higher risk in live account , it could be dangerous at any time despite of most accurate trading plan .
I don’t think it’s a good idea. Because, we need to treat in the demo as like our live. Same strategy, same plan even same mental preparations.
keeping patience.......
Nov 26, 2018 at 08:50
Adribaasmet posted:Mohammadi posted:
Trading with high leverage in demo account is right decision , because leverage contains always higher risk in live account , it could be dangerous at any time despite of most accurate trading plan .
I don’t think it’s a good idea. Because, we need to treat in the demo as like our live. Same strategy, same plan even same mental preparations.
i agree. demo is available to us for learning, why would we need demo if not for learning how to pull off our strategies and how not loose money.
Mitglied seit Mar 12, 2018
39 Posts
Dec 03, 2018 at 12:51
AniLorak posted:
Basically, seriousness is very important! If we are not careful during demo trading, then there is no value.
You are absolutely right mate, demo is useless for you until you don't take it seriously.
Mitglied seit Feb 22, 2011
4573 Posts
Dec 10, 2018 at 15:09
SaltaLargo posted:
When on demo it is important to use same leverage account because if demo is 1:500 and real is 1:20 there will be big difference in number of trades opened
Rather in size of the trades
Leverage does not affect opening trade but its size
Mitglied seit Dec 28, 2018
9 Posts
Dec 31, 2018 at 13:35
Why Leverage is Incorrectly Considered Risky. Leverage is commonly believed to be high risk because it supposedly magnifies the potential profit or loss that a trade can make (e.g. a trade that can be entered using $1,000 of trading capital, but has the potential to lose $10,000 of trading capital)
Dec 31, 2018 at 15:24
SaltaLargo posted:
When on demo it is important to use same leverage account because if demo is 1:500 and real is 1:20 there will be big difference in number of trades opened
I think, traders should use the demo as sincerely as like their real account! In addition, same trading features including the leverage number.
Mitglied seit Aug 27, 2017
875 Posts
Apr 28, 2019 at 10:59
AniLorak posted:SaltaLargo posted:
When on demo it is important to use same leverage account because if demo is 1:500 and real is 1:20 there will be big difference in number of trades opened
I think, traders should use the demo as sincerely as like their real account! In addition, same trading features including the leverage number.
Yes, that’s the good practice! I see, which traders are enjoying today’s live trading, they were very serious in their demo, that’s the main trick.
keeping patience.......
Mitglied seit Aug 27, 2017
875 Posts
Apr 29, 2019 at 13:45
AmDiab posted:
Well; I am not against on demo practice! But I think, if traders are unable to concentrate in demo; in that case cent account is a good alternative choice.
Yes, it can be! I believe, traders should try with the demo as much as possible! Because, the environment is almost same.
keeping patience.......
Aug 26, 2019 at 17:03
Adribaasmet posted:AmDiab posted:
Well; I am not against on demo practice! But I think, if traders are unable to concentrate in demo; in that case cent account is a good alternative choice.
Yes, it can be! I believe, traders should try with the demo as much as possible! Because, the environment is almost same.
Of course; having a long term trading plan is important on demo; I see, in this case using small trading balance is useful!
Mitglied seit Aug 27, 2017
875 Posts
Sep 01, 2019 at 15:19
Roberto21 posted:
For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.
Nice ratio on trading leverage but what’s your risk reward ratio on per trade?
keeping patience.......
Sep 10, 2020 at 00:49
New traders usually get into this kind of problem. Causes losses in high leverage trading. If a trader does not follow money management and risk management, he will never be able to make a consistent profit. Risk management has the power to cover the losses of two trades with one trade. Money management protects your investment at all times. So if a trader trades without maintaining high leverage and discipline, he will never succeed in trading.
Mitglied seit Jun 26, 2020
323 Posts
Sep 10, 2020 at 06:45
yes , i think also , high leverage contains high risk , generally i never use high leverage even though i can predict the real faction of this market with certainly.
