High leverage , High risk ?

Jingyi posted:
A beginner will lose it all on 1:1000 or 1:10. I think there should be enforced use of demo account for 1 month before open live account and a video course on risk management that all traders must watch before account is opened. That would help people a lot more

Even after ESMA which limits leverage drastically there is no decrease of losing traders.

togr posted:
Even after ESMA which limits leverage drastically there is no decrease of losing traders.

Indeed. The only difference is that they have to deposit bigger amounts of money in order to lose.

For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.

Imamul posted:
For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.

Same to me! I think, most of the retail traders who are aware of money management issue they are playing with 1:100 trading leverage.

Trading with high leverage in demo account is right decision , because leverage contains always higher risk in live account , it could be dangerous at any time despite of most accurate trading plan .

Mohammadi posted:
Trading with high leverage in demo account is right decision , because leverage contains always higher risk in live account , it could be dangerous at any time despite of most accurate trading plan .

I don’t think it’s a good idea. Because, we need to treat in the demo as like our live. Same strategy, same plan even same mental preparations.

Adribaasmet posted:

Mohammadi posted:
Trading with high leverage in demo account is right decision , because leverage contains always higher risk in live account , it could be dangerous at any time despite of most accurate trading plan .

I don’t think it’s a good idea. Because, we need to treat in the demo as like our live. Same strategy, same plan even same mental preparations.

i agree. demo is available to us for learning, why would we need demo if not for learning how to pull off our strategies and how not loose money.

Basically, seriousness is very important! If we are not careful during demo trading, then there is no value.

AniLorak posted:
Basically, seriousness is very important! If we are not careful during demo trading, then there is no value.

You are absolutely right mate, demo is useless for you until you don't take it seriously.

you must use the same mindset than real money trading

SaltaLargo posted:
When on demo it is important to use same leverage account because if demo is 1:500 and real is 1:20 there will be big difference in number of trades opened

Rather in size of the trades
Leverage does not affect opening trade but its size

Why Leverage is Incorrectly Considered Risky. Leverage is commonly believed to be high risk because it supposedly magnifies the potential profit or loss that a trade can make (e.g. a trade that can be entered using $1,000 of trading capital, but has the potential to lose $10,000 of trading capital)

SaltaLargo posted:
When on demo it is important to use same leverage account because if demo is 1:500 and real is 1:20 there will be big difference in number of trades opened

I think, traders should use the demo as sincerely as like their real account! In addition, same trading features including the leverage number.

AniLorak posted:

SaltaLargo posted:
When on demo it is important to use same leverage account because if demo is 1:500 and real is 1:20 there will be big difference in number of trades opened

I think, traders should use the demo as sincerely as like their real account! In addition, same trading features including the leverage number.

Yes, that’s the good practice! I see, which traders are enjoying today’s live trading, they were very serious in their demo, that’s the main trick.

Well; I am not against on demo practice! But I think, if traders are unable to concentrate in demo; in that case cent account is a good alternative choice.

AmDiab posted:
Well; I am not against on demo practice! But I think, if traders are unable to concentrate in demo; in that case cent account is a good alternative choice.

Yes, it can be! I believe, traders should try with the demo as much as possible! Because, the environment is almost same.

Adribaasmet posted:

AmDiab posted:
Well; I am not against on demo practice! But I think, if traders are unable to concentrate in demo; in that case cent account is a good alternative choice.

Yes, it can be! I believe, traders should try with the demo as much as possible! Because, the environment is almost same.

Of course; having a long term trading plan is important on demo; I see, in this case using small trading balance is useful!

Roberto21 posted:
For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.

Nice ratio on trading leverage but what’s your risk reward ratio on per trade?

New traders usually get into this kind of problem. Causes losses in high leverage trading. If a trader does not follow money management and risk management, he will never be able to make a consistent profit. Risk management has the power to cover the losses of two trades with one trade. Money management protects your investment at all times. So if a trader trades without maintaining high leverage and discipline, he will never succeed in trading.