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
Have you ever lost a lot of money like this?
I am sure there’ll be mixed responses for this. Some traders would have gained heavily while some would have lost it all, would ultimately depend upon every trader’s strategy used isn’t it?!
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 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.
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 :)
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.
I prefer applying small amounts of leverage to each of my trades as it leaves more room for trades with a wider stop loss to avoid a higher loss of capital. Remember that a highly leveraged trade can deplete your account quickly if it goes against you.
Higher leverage is very risky but how much leverage I will use usually depends on the investment. If I want to select low leverage with a small deposit, it will be very difficult for me. I have to select leverage with a good deposit.
You don’t have to be afraid of using leverage. Use trailing stops to reduce your losses when a trade goes in the wrong direction. Just see to it that your broker allows using different stops. And this is not the only advantage of these stops that I see. It so much reduces the emotion of trading and surely results in better trading decision-making.
LukeRachel posted: Higher leverage is very risky but how much leverage I will use usually depends on the investment. If I want to select low leverage with a small deposit, it will be very difficult for me. I have to select leverage with a good deposit.
Wouldn’t higher leverage with a higher deposit entail an even higher risk :)
AVERTISSEMENT SUR LE RISQUE ÉLEVÉ : Le trading de devises comporte un niveau de risque élevé qui peut ne pas convenir à tous les investisseurs.
Leffet de levier crée un risque supplémentaire et une exposition aux pertes. Avant de décider de négocier des devises, examinez attentivement vos objectifs dinvestissement, votre niveau dexpérience et votre tolérance au risque.
Vous pourriez perdre une partie ou la totalité de votre investissement initial. Ninvestissez pas largent que vous ne pouvez pas vous permettre de perdre. Renseignez-vous sur les risques associés au trading de devises et demandez conseil à un conseiller financier ou fiscal indépendant si vous avez des questions.
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