High leverage = High risk?

Jan 24, 2021 at 09:34
Vistas 4,659
71 Replies
Miembro desde Oct 29, 2020   posts 53
Jan 24, 2021 at 09:34
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.
Miembro desde Jul 27, 2020   posts 81
Jan 25, 2021 at 06:40
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.
Miembro desde Nov 03, 2020   posts 70
Jan 25, 2021 at 08:37
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
Miembro desde Oct 29, 2020   posts 53
Jan 27, 2021 at 06:16
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!
Miembro desde Oct 29, 2020   posts 53
Jan 27, 2021 at 06:17
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.
Miembro desde Oct 29, 2020   posts 53
Jan 28, 2021 at 07:17
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
Miembro desde Jul 17, 2020   posts 42
Jan 28, 2021 at 10:53
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.
Miembro desde Jan 13, 2021   posts 52
Jan 28, 2021 at 19:12
On small accounts you need it to be fair to have a chance at trading
Miembro desde Nov 02, 2020   posts 57
Jan 29, 2021 at 14:15
In order for it not to be so costly, you need to correctly, correctly calculate and prescribe in your trading plan.
Miembro desde Jan 17, 2021   posts 31
Jan 29, 2021 at 18:54
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
Miembro desde Jul 20, 2020   posts 298
Jan 31, 2021 at 01:53
The higher the leverage, the higher the risk. So it is very important to be careful about leverage.
Miembro desde Oct 29, 2020   posts 53
Feb 01, 2021 at 06:22
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.
Miembro desde Oct 29, 2020   posts 53
Feb 01, 2021 at 06:24
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.
Miembro desde Oct 29, 2020   posts 53
Feb 01, 2021 at 06:25
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.
Miembro desde Jun 26, 2020   posts 327
Feb 01, 2021 at 09:44
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.
Miembro desde Oct 29, 2020   posts 53
Feb 02, 2021 at 04:54
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????
Miembro desde Oct 29, 2020   posts 53
Feb 03, 2021 at 06:14
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 :)
Miembro desde Jan 22, 2021   posts 125
Feb 03, 2021 at 11:54
I think when newbies enter the live forex market, they want to book more profits with very small amounts, so leverage attracts them. But it should be kept in mind that leverage is associated with a certain amount of risk. While it can push your trades to make profits also at the same time it can put you in loss which is even more than your balance you have. When I started, I used to look for a 1:30 leverage ratio with a minimal balance that I can handle. This keeps my risk minimal. You can gradually increase your leverage ratio depending upon your earnings and understanding.
Miembro desde Oct 29, 2020   posts 53
Feb 04, 2021 at 07:43
blackChelsea posted:
I think when newbies enter the live forex market, they want to book more profits with very small amounts, so leverage attracts them. But it should be kept in mind that leverage is associated with a certain amount of risk. While it can push your trades to make profits also at the same time it can put you in loss which is even more than your balance you have. When I started, I used to look for a 1:30 leverage ratio with a minimal balance that I can handle. This keeps my risk minimal. You can gradually increase your leverage ratio depending upon your earnings and understanding.
I understand, and so I am not going to rush into any trade. I will start with safe pairs like EURUSD and then try my hands with other pairs.
Miembro desde Nov 24, 2020   posts 12
Feb 06, 2021 at 06:13
There is no fixed amount which is right for using leverage. Using leverage seriously depends on your ability to take risk and how much you can afford to lose. PNL calculators are fine way of assessing your risk per trade. You’ll find this calculator with most brokers - XM, FxPro.
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