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High leverage = High risk?

unsightlydray
Jan 24 2021 at 09:34
posts 53
As someone with just a few dollars extra to give trading a shot, would it be possible at all to gain anything without the use of leverage? And is it even wise to use up all of your own cash?

Disclaimer: I am not just another trader who is dreaming of a yacht life, I just want to be able to get by with the basics of life through trading profits.
Suggestions appreciated.
Beagelv
Jan 25 2021 at 06:40
posts 81
The use of leverage that brokers offer in principle makes sense, you should be a little prepared and learn all the nuances of how it works.
ddarko3
Jan 25 2021 at 08:37
posts 70
unsightlydray posted:
As someone with just a few dollars extra to give trading a shot, would it be possible at all to gain anything without the use of leverage? And is it even wise to use up all of your own cash?
Technically leverage helps you to gain more but the problem with them is that you can also lose completely
unsightlydray
Jan 27 2021 at 06:16
posts 53
Beagelv posted:
The use of leverage that brokers offer in principle makes sense, you should be a little prepared and learn all the nuances of how it works.
All up for learning mate!
unsightlydray
Jan 27 2021 at 06:17
posts 53
ddarko3 posted:
unsightlydray posted:
As someone with just a few dollars extra to give trading a shot, would it be possible at all to gain anything without the use of leverage? And is it even wise to use up all of your own cash?
Technically leverage helps you to gain more but the problem with them is that you can also lose completely
I hear about it being a double-edged sword and all, but without it, I doubt I will be able to gather anything.
unsightlydray
Jan 28 2021 at 07:17
posts 53
forextrader777 posted:
Leverage does help in multiplying your profits but don't forget that losses will also be in multiples which is why it needs proper understanding of how it works. So, it’s better to learn about it’s concept first.
I have no intentions of jumping the gun, but when I do go live, I wanna know if one should start with all of their own capital or use little bit of leverage
blandpatsyy
Jan 28 2021 at 10:53
posts 42
Leverage sure is a double-edged sword, but without leverage trading would not bring in any scalable results. That is unless you have heaps of money to invest. How much would a movement of a few pips give on 3 or 4k. That also might be considered a big amount for a lot of current investors in the market. Considering most are part-timers, and some even college lads.
Had it not been for leverage, I would have stopped after meagre earnings. Still trading solely because of high leverage.
dutchy1986
Jan 28 2021 at 19:12
posts 52
On small accounts you need it to be fair to have a chance at trading
Garrywilson
Jan 29 2021 at 09:20
posts 37
I find it too risky to use leverage. Can’t imagine owing money to the broker and defeat the whole purpose of being in the market.
blandpatsyy
Jan 29 2021 at 12:06
posts 42
Garrywilson posted:
I find it too risky to use leverage. Can’t imagine owing money to the broker and defeat the whole purpose of being in the market.
If you use a broker that offers negative balance protection, there’s no way that you’ll be risking owing anything to the broker. Then there’s stop loss as well to the rescue. If I’m not wrong all brokers offer these features, and if yours don’t, simply transfer your funds to a better broker.
Faujinn
Jan 29 2021 at 14:15
posts 57
In order for it not to be so costly, you need to correctly, correctly calculate and prescribe in your trading plan.
Vanza Dorbey (vanzadorbey)
Jan 29 2021 at 18:54
posts 31
Faujinn posted:
In order for it not to be so costly, you need to correctly, correctly calculate and prescribe in your trading plan.
which broker should i choose for the your suggested plan Faujinn
LeviSievwright5
Jan 31 2021 at 01:53
posts 298
The higher the leverage, the higher the risk. So it is very important to be careful about leverage.
unsightlydray
Feb 01 2021 at 06:22
posts 53
dutchy1986 posted:
On small accounts you need it to be fair to have a chance at trading
That’s what I think, can’t put in all my savings for trying my hand at trading, leverage is important.
unsightlydray
Feb 01 2021 at 06:24
posts 53
Faujinn posted:
In order for it not to be so costly, you need to correctly, correctly calculate and prescribe in your trading plan.
Ya and that’s why my plan as of now is based on risk management, every decision revolves around it, including leverage.
unsightlydray
Feb 01 2021 at 06:25
posts 53
LeviSievwright5 posted:
The higher the leverage, the higher the risk. So it is very important to be careful about leverage.
Certainly! I am devoting maximum time on my risk management part of the trading plan. Not planning on risking more than 1%, and going to maintain a ratio of 1:3 for using leverage. Hopefully I’m on the right track.
Tradelist45
Feb 01 2021 at 09:44
posts 327
right now i am using high leverage most of the time in demo ,
 it supports me to avoid unfortunate risk and losses when trading in a real account.
Garrywilson
Feb 01 2021 at 11:28
posts 37
ddarko3 posted:
unsightlydray posted:
As someone with just a few dollars extra to give trading a shot, would it be possible at all to gain anything without the use of leverage? And is it even wise to use up all of your own cash?
Technically leverage helps you to gain more but the problem with them is that you can also lose completely
I completely agree with you, and sadly it’s the losing part that happens more.
unsightlydray
Feb 02 2021 at 04:54
posts 53
Tradelist45 posted:
right now i am using high leverage most of the time in demo ,
 it supports me to avoid unfortunate risk and losses when trading in a real account.
I don’t get it! Did you actually mean you are using “high leverage” which is keeping you safe????
unsightlydray
Feb 03 2021 at 06:14
posts 53
blandpatsyy posted:
Leverage sure is a double-edged sword, but without leverage trading would not bring in any scalable results. That is unless you have heaps of money to invest. How much would a movement of a few pips give on 3 or 4k. That also might be considered a big amount for a lot of current investors in the market. Considering most are part-timers, and some even college lads.
Had it not been for leverage, I would have stopped after meagre earnings. Still trading solely because of high leverage.
You’ve just echoed my thoughts, without margin trading I doubt I will be able to make any money here. Thanks for the motivation :)
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