Like most traders I entered the Forex world with piss and vinegar hoping to cash in on quick profits. THIS IS NOT THE CASE.
After 2 blown accounts and a blow to my ego, I sat back and reevaluated my trades. Turns out I was doing a few things wrong.
1. Over leveraged. I know the appeal of trading 1:500 or even 1:1000, but DON'T do it. You will blow you account. My max now is 1:100 and that carries a significant amount of risk.
2. Money management. Do not risk more than 1% of your account. Some say 2% is fine, but 1% is better. set your stop losses at 2% of capital.
3. Worry about entries less and focus on how you're going to exit the trade that makes the most sense. Once you're in the market manage that position.
I hope this helps someone, please feel free to comment.
Leverage has nothing to do with risk.
If you want to trade 1 lot without leverage your account has to be deposited with like $120,000 USD. (to trade 100,000 EUR)
With leverage you need just $1000 to trade such position.
Both risk and profit is determined by SL and TP.
So in both cases with 10.0 pips SL and TP you made either $100 profit or loss.
But with leverage it is 10% profit without leverage it is 0.1% profit:)
Now if you have system with lets say 60% profitability you make at least 10% profit
If you dont have profitable trade system than DO NOT trade:)
As I said low leverage is not ANY advantage.