High leverage = High risk?

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.

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.

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

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!

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.

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.

Higher leverage is risky even if the profit is big, but trading is not easy predict using higher leverage and failing can bring in a big hit and make traders stop trading.

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

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.

On small accounts you need it to be fair to have a chance at trading

I find it too risky to use leverage. Can’t imagine owing money to the broker and defeat the whole purpose of being in the market.

Garrywilson posted:
I find it too risky to use leverage. Can’t imagine owing money to the broker and defeat the whole purpose of being in the market.

If you use a broker that offers negative balance protection, there’s no way that you’ll be risking owing anything to the broker. Then there’s stop loss as well to the rescue. If I’m not wrong all brokers offer these features, and if yours don’t, simply transfer your funds to a better broker.

In order for it not to be so costly, you need to correctly, correctly calculate and prescribe in your trading plan.

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

The higher the leverage, the higher the risk. So it is very important to be careful about leverage.

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.

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.

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.

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.