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High leverage = High risk?

mitchelstrack
Mar 12 2021 at 09:11
posts 30
The best part about using leverage, it makes a massive impact on capital efficiency. So profits are decent in the short-term, but there’s also a much more considerable return on investment over a much shorter time period.
Xazvier
Mar 13 2021 at 16:30
posts 37
'High leverage does have higher risk involved but using high leverage also has benefits because the profit earned is higher than the invested capital in a trade.

But high leverages are mostly used by experienced traders that take risks and place accurate or profitable trades.'
Garrywilson
Mar 15 2021 at 09:32
posts 37
Leverage ratio got to be maintained at such a level where if the trade goes in the opposite direction (as we have all seen) because of a sudden news flash or something, the losses shouldn't be such that our account is blown. Its happened with me so many times that despite the use of sl (as it is I'm not very ambitious with its placement - I keep it close to my entry) I have suffered loss because of leverage that I would be much happier without. Now I am a firm believer of not using leverage. If my trade strategy isn't good enough and can't get me profits as it is, it's no good a strategy and needs modification.
Raywilkins665
Mar 15 2021 at 11:06
posts 24
BarronLucas posted:
Using high leverage does have higher risks and possibilities of blowing up your account.

When a trader uses high leverage and losses in a trade the loss is higher as the leverage and would be difficult for the trader to invest in the next trade.
Yes, true! But everyone here is talking about using leverage the right way. If you know risk management and money management, you won’t take any unnecessary steps, be it using high leverage or something else. It is all about knowing what you are doing.
mathenray
Mar 16 2021 at 04:16
posts 6
Of course! High leverage means high risk. But don’t you think it can be managed? Why would anyone take a high risk that they have no idea about? It is nothing more than inviting a loss. Be careful about the decisions you make and don’t forget that there are more losses in the market than profits.
gildlef
Mar 16 2021 at 10:43
posts 27
I don’t see any point in believing that high leverage can be harmful to your trading account. For me, the more leverage, the better the trades. I use leverage up to 1:200 with swissquote and xtb. I do make losses but they all get recovered after I make profits. I don’t think you can have a successful trading career without taking risks.
voicebissa
Mar 17 2021 at 05:43
posts 19
The market moves can be quite unpredictable. But if you won’t take risks, you won’t be able to make profits. If not high leverage, you can start with using low leverage and increase it with time. It is better not to take risks when you know what the clear result will be.
leahmclaughlin
Mar 18 2021 at 09:53
posts 20
No one wants to lose, right? But I don’t understand why traders refrain from analysing the market before making such bigger moves that result in nothing more than losses. Trading is a risky job and it must not be taken lightly. I have been into trading for the last few years but there hasn’t been any strategy that I applied directly on my live account. I demo trade with pepperstone every time I see profitable market conditions to use leverage. It’s a longer procedure but I’m in no hurry to lose :)
Brussels88
Mar 18 2021 at 13:55
posts 42
'Using higher leverage is a risk, but it also has its advantage. If a trader uses higher leverage and can convert it into a profitable trade, the profit earned is higher than the invested capital.

Mostly experienced traders prefer trading with higher leverage because they know they have the perfect money management skill and strategy.'
SteveHanks
Mar 19 2021 at 06:43
posts 536
Demo account is best way to learn and practice no matter what market you are in. Every investment market has its own risk. So, invest with caution.
Cooper078
Mar 19 2021 at 13:36
posts 43
Trading with higher leverage is risky, but higher leverage can also bring in higher profit value than an average leverage trade.
Vanza Dorbey (vanzadorbey)
Mar 20 2021 at 00:43
posts 31
Never trade with high leverage...you will loose your money.
Russel Gutierrez (russellgutierrez)
Mar 23 2021 at 04:00
posts 56
gildlef posted:
I don’t see any point in believing that high leverage can be harmful to your trading account. For me, the more leverage, the better the trades. I use leverage up to 1:200 with swissquote and xtb. I do make losses but they all get recovered after I make profits. I don’t think you can have a successful trading career without taking risks.
The level of leverage isn’t important if the risk management rules are used properly.
voicebissa
Mar 23 2021 at 07:05
posts 19
russellgutierrez posted:
gildlef posted:
I don’t see any point in believing that high leverage can be harmful to your trading account. For me, the more leverage, the better the trades. I use leverage up to 1:200 with swissquote and xtb. I do make losses but they all get recovered after I make profits. I don’t think you can have a successful trading career without taking risks.
The level of leverage isn’t important if the risk management rules are used properly.
Yeah the account balance, position size and stop-loss level are factors that’ll help calculating the risk I suppose. Better say, I calculate mine keeping in mind these 3 aspects.
unsightlydray
Mar 23 2021 at 07:25
posts 53
Cooper078 posted:
Trading with higher leverage is risky, but higher leverage can also bring in higher profit value than an average leverage trade.

Average leverage! Hmm, how much would that be

unsightlydray
Mar 23 2021 at 07:26
posts 53
vanzadorbey posted:
Never trade with high leverage...you will loose your money.
For sure like…?
Jordan5ith
Mar 23 2021 at 13:47
posts 72
Should a beginner broker trade with higher leverage or stick to lower leverage for most live trading experience?
unsightlydray
Mar 24 2021 at 06:30
posts 53
Jordan5ith posted:
Should a beginner broker trade with higher leverage or stick to lower leverage for most live trading experience?
I think you mean ‘trader’ buddy, you’re on the right page here, I’ve been deliberating over the same issue.
Johnathankim
Mar 24 2021 at 10:13
posts 29
@voicebissa So you’re saying that if I have a $1,000 account balance and set the stop loss at 10 pips, I can use 10:1 leverage with the 0.10 lots position size?
Keaton Richards (keatonrichard)
Mar 25 2021 at 04:32
posts 30
Exactly what I’m saying Johnathan. Each pip would be worth $1 and the risk you’ll take on each trade would be $10 or just 1%. Not bad right?
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