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High leverage = High risk?
Member Since Oct 29, 2020
53 posts
Jan 24, 2021 at 09:34
Member Since Oct 29, 2020
53 posts
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.
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.
Jan 25, 2021 at 08:37
Member Since Nov 03, 2020
70 posts
unsightlydray posted:Technically leverage helps you to gain more but the problem with them is that you can also lose completely
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?
Member Since Oct 29, 2020
53 posts
Member Since Oct 29, 2020
53 posts
Jan 27, 2021 at 06:17
Member Since Oct 29, 2020
53 posts
ddarko3 posted:I hear about it being a double-edged sword and all, but without it, I doubt I will be able to gather anything.unsightlydray posted:Technically leverage helps you to gain more but the problem with them is that you can also lose completely
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?
Member Since Oct 29, 2020
53 posts
Jan 28, 2021 at 07:17
Member Since Oct 29, 2020
53 posts
forextrader777 posted: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
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.
Member Since Jul 17, 2020
42 posts
Jan 28, 2021 at 10:53
Member Since Jul 17, 2020
42 posts
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.
Had it not been for leverage, I would have stopped after meagre earnings. Still trading solely because of high leverage.
Member Since Jan 13, 2021
52 posts
Member Since Jan 17, 2021
31 posts
Member Since Jul 20, 2020
298 posts
Member Since Oct 29, 2020
53 posts
Member Since Oct 29, 2020
53 posts
Feb 01, 2021 at 06:24
Member Since Oct 29, 2020
53 posts
Faujinn posted:Ya and that’s why my plan as of now is based on risk management, every decision revolves around it, including leverage.
In order for it not to be so costly, you need to correctly, correctly calculate and prescribe in your trading plan.
Member Since Oct 29, 2020
53 posts
Feb 01, 2021 at 06:25
Member Since Oct 29, 2020
53 posts
LeviSievwright5 posted: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.
The higher the leverage, the higher the risk. So it is very important to be careful about leverage.
Member Since Jun 26, 2020
327 posts
Member Since Oct 29, 2020
53 posts
Feb 02, 2021 at 04:54
Member Since Oct 29, 2020
53 posts
Tradelist45 posted:I don’t get it! Did you actually mean you are using “high leverage” which is keeping you safe????
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.
Member Since Oct 29, 2020
53 posts
Feb 03, 2021 at 06:14
Member Since Oct 29, 2020
53 posts
blandpatsyy posted:You’ve just echoed my thoughts, without margin trading I doubt I will be able to make any money here. Thanks for the motivation :)
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.
Member Since Jan 22, 2021
125 posts
Feb 03, 2021 at 11:54
Member Since Jan 22, 2021
125 posts
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.
Member Since Oct 29, 2020
53 posts
Feb 04, 2021 at 07:43
Member Since Oct 29, 2020
53 posts
blackChelsea posted: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.
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.
Feb 06, 2021 at 06:13
Member Since Nov 24, 2020
12 posts
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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