It enables more people to actually trade but by the same token it allows more people with poor risk management to misuse it and lose their money.
If you can't spot the liquidity then you are the liquidity.
sebking1986 posted:Yes, You are absolutely right.
It enables more people to actually trade but by the same token it allows more people with poor risk management to misuse it and lose their money.
AndrewMcCalam54
Mitglied seit Jun 12, 2021
132 Posts
Jan 07 2022 at 07:46
the leverage could be dangerous if you have no trading plan with zero risk management, so traders should develop the money management first of all.
fearfuldizzy
Mitglied seit Jan 07, 2022
9 Posts
Jan 07 2022 at 10:34
So true. leverage can be very dangerous with no risk management. Too many trader make small deposit then enter a trade at 1Lot and lose every thing
winning_trades
Mitglied seit May 31, 2021
48 Posts
Jan 07 2022 at 11:18
I have seen many blowing their accounts with leverage. Leverage is that much powerful that it can take you on clouds or even to the core of the earth. Play with it safely.
Well, I would say that leverage is not vital for trading. I mean that you can easily do without leverage, however, you will have smaller profits. To tell you the truth, I think that the newbies should stay away from trading with leverage because not every beginner understands how to evaluate the risks which they have within a concrete deal. Before trading with leverage you should understand how to measure the risks and manage your budget in order not to lose everything within sheer minutes. Later on you can think of using leverage in your trading but with caution. You definetely should be aware of money and risk management in order to make your trading more or less safe for your budget.
Speaking of high and low leverage, it is important to note that the higher leverage you have, the more risks you take. I don't see any problems of trading with huge leverage. The only thing is that you should be careful about the position size. You can regulate it as if you wish.
Speaking of high and low leverage, it is important to note that the higher leverage you have, the more risks you take. I don't see any problems of trading with huge leverage. The only thing is that you should be careful about the position size. You can regulate it as if you wish.
It rather depends on the strategy of the trader's work, but I would advise you to pay enough attention to this.
I think this is important. But in general, in trading, many aspects are important. And it is important to understand that if you do not pay attention to one of them, losses are possible.
Leverages aren't important in trading at all actually. Here everything depends on whether you like leverage traing or not. If you understand that you can't take such risks at you, then perhaps you have to stay off leverage trading and when you're choosing a broker you should pay attention to other criteria. Some traders prefer leverage trading and they always try to find a broker which would provide the highest leverage. These traders are really crazy in my opinion, because leverage trading requires lots of experience and skills. In fact, there is only 5% of traders around the world who can trade with leverages and earn money.
As usual, you need to find the golden mean. If the leverage is too high, then, surely, the potential profits will high, but you will run more risks. Somtimes the leverage can lose $100 within a minute, that is why I strongly recommend to trat leverage with caution. It is hard to say what leverage should be specifically because we all are different and one man's meat is another man's poison. So, you should decide for yourself.
Centrillador
Mitglied seit Dec 26, 2019
21 Posts
Jan 14 2022 at 14:30
I believe that all traders decide on their own, whether leverage trading is important for them or not. The matter here is to understand how much place leverage trading takes in your trading activity. If you try to stay away of the leverage trading, because you are afraid of facing such risks, then of course, it will be quite difficult for you claim that leverage trading is significant for you. Probably, you will tell that you don't care about it at all. Some traders who are fond of leverage trading might say that leverage trading means everything for them because it brings the money. Here everything is pretty individual.
Centrillador
RobertFerrari
Mitglied seit Aug 15, 2021
415 Posts
Jan 15 2022 at 12:37
skihav posted:Leverage helps the new traders a lot.
I think this is important. But in general, in trading, many aspects are important. And it is important to understand that if you do not pay attention to one of them, losses are possible.
Willowerno
Mitglied seit Jun 19, 2020
38 Posts
Jan 27 2022 at 04:34
UweMoench posted:I agree with you, having too many open positions while using leverage can be disastrous. It is pivotal to choose the right lot size and risk management when using high leverage, otherwise, go for small.
Many options in using leverage, and in theory and risk, using smaller is better, as I use leverage to keep the 1:100, do not let too many open positions
whitneytyler
Mitglied seit Jun 07, 2021
72 Posts
Jan 31 2022 at 06:48
Leverage is indeed an important tool for a forex trader. By using leverage, traders can have the opportunity to earn bigger profits than they can manage to earn with the capital they possess. Low leverage is good for beginners but as they get confident, they can go for a higher leverage to earn more profits.
Williamfreed
Mitglied seit Aug 10, 2021
176 Posts
Jan 31 2022 at 14:14
The forex market uses leverage to allow you to control higher positions than the amount of money in your account. Leverage is often expressed in terms of a ratio. If the leverage is 100:1, you can manage a position worth $100 with just $1. The amount of profit as well as the amount of loss that can be made in the forex market is determined by this. Essentially, it functions as a double-edged sword.
fearfuldizzy posted:Exactly, you are right, leverage is actually very risky.
So true. leverage can be very dangerous with no risk management. Too many trader make small deposit then enter a trade at 1Lot and lose every thing
billysnyder
Mitglied seit Jun 16, 2021
111 Posts
Feb 02 2022 at 05:37
When you trade using leverage, you will need to consider the possibility of losing more than your initial deposit. In fact, you can lose as much as your account balance multiplied by the leverage value. A trader should always use proper money management in order to ensure safe trading.
Chelsea Blacks
(blackChelsea)
Mitglied seit Jan 22, 2021
125 Posts
Feb 02 2022 at 06:34
As a trader we should take the leverage very seriously. Over leveraged can put you into substantial risk and if under leveraged then you may miss the opportunity. I use leverage when advantage is crystal clear. it is important to track the positions and apply stop loss with each trade so that your capital remains in the protected zone.
HeavenLeighGill
(HeavLeighGill26)
Mitglied seit Aug 05, 2021
401 Posts
Feb 02 2022 at 17:49
Leverage can help you out but a lot of beginners look for very high leverage and it's often referred to as a double-edged sword for this reason. A lot of experts stick with 1:100 but to each his own.