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How much Important of Leverage for Trading

Aug 25, 2020 at 11:39
Vistas 2,350
56 Replies
Miembro desde Jan 10, 2020   posts 28
Sep 11, 2020 at 09:27
AliaDare posted:
Leverage is very detrimental to low investment. Your account is always protected when the leverage is low. It is very important to keep low leverage to follow money management and risk management. According to the trading plan, it is possible to make a consistent profit by working with low leverage.

hello sir.
thank you for explanations.
i have one more question please. you told that low leverage protects an account. but if i put leverage 1:30 i need more money on my acc trade. that is i cannot trade. so i need to put more higher leverage. what about 1:100? is it ok?
Miembro desde Jul 20, 2020   posts 341
Oct 09, 2020 at 18:06
Leverage is very useful for low investing traders. it helps them to make more profit with their little investment.
Miembro desde Jun 30, 2020   posts 37
Oct 26, 2020 at 05:17
You can make a lot of money because of leverage if your investment is low and short term. It is very important to protect your account if the leverage is low.
Miembro desde Apr 13, 2018   posts 35
Oct 30, 2020 at 11:00
Everyone is in commenting on this post to just increase their post count. Nice people. Even the actual questioner is not in this world now. But we're still making good use of his years-old thread. SO considerate of you all. Keep it up.
Indicators are so deceiving, always lagging. Trend lines & Calendars are the best.
Miembro desde Oct 01, 2020   posts 49
Nov 05, 2020 at 11:14
Leverage is truly a double-edged sword. You must only use it when you know where the market trend is going.
Miembro desde Jul 25, 2018   posts 319
Nov 05, 2020 at 12:06
Lorencecolling posted:
Leverage is truly a double-edged sword. You must only use it when you know where the market trend is going.
Yes it's true, but also how much orders you want to open.
Miembro desde Oct 08, 2020   posts 29
Nov 09, 2020 at 10:40
I may be wrong but I see leverage as an option that increases your chances of losing more money than you can afford to lose. I don’t know how come people are so brave to take the risk. I have never used leverage more than 5x.
Miembro desde Mar 28, 2021   posts 617
Dec 29, 2021 at 10:20
Leverage is an important financial tool which an investor should consider when choosing a broker, it allows an investor to grow his market exposure to a level that exceeds the initial investments
Miembro desde Jul 20, 2020   posts 399
Dec 29, 2021 at 11:52
Harshalgibbs posted:
I agree that leverage can make it easy for you to make more profits. But at the same time, it also enhances the chances of you losing money.

Not necessarily. You can use high leverage and make sure you have risk management and lot size correctly chosen. It is great to compound accounts if done properly
Miembro desde Jul 19, 2020   posts 751
Dec 29, 2021 at 12:24
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
Miembro desde Jul 23, 2020   posts 869
Jan 03, 2022 at 17:41
Leverage is the most effective technique to create a large sum of money with a little quantity of beginning capital.
Miembro desde Jul 23, 2020   posts 759
Jan 05, 2022 at 00:30
Leverage is truly called the double-edged sword. You must only use it when you are sure about the market trend and know that you will win. If you are even a little unsure, I don’t suggest using leverage.
Miembro desde Jan 05, 2022   posts 8
Jan 05, 2022 at 10:00
Without leverage fx trading would not be possible unless you were rich. leverage is king in this world.
Miembro desde Apr 09, 2019   posts 538
Jan 05, 2022 at 10:55
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.
Miembro desde Jun 12, 2021   posts 132
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.
Miembro desde Jan 07, 2022   posts 9
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
Miembro desde May 31, 2021   posts 48
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.
Miembro desde Jul 17, 2020   posts 13
Jan 07, 2022 at 18:18
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.
Miembro desde Apr 03, 2021   posts 8
Jan 13, 2022 at 20:41
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.
Miembro desde Dec 26, 2019   posts 21
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.
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