Leverage question.

Hi guys,

I'm new to trading. Currently trading on ECN broker. Since ECN broker charge per lot comission.

1) It makes sense if I trade on high leverage right? Since higher leverage means lower lot size = lower comission. Note that I only risk 1% per trade, so high or low leverage only affects my lot size, not my per trade $ size.

2) I'm using position size calculator in myfxbook but is there a way to not re-enter 500 contract size each time I turn it on?

Thx!

You can use 1:50 leverage. This leverage will provide security to your account.

Before using leverage it is more important to ensure how to manage risk , because leverage contains huge risk for all time. they should trade in low leverage in micro account for avoiding loss, otherwise they can fall a great trouble when market moves at random.

Having a solid risk management tool is a must. Before you use leverage you must define your stop loss levels. Know when to enter and exit a trade and always stick to it. Your trade size should depend more on your volume of trade. I always trade micro lots, be it on etoro, cityindex or fxview (my 3 brokers) because at this time in my life I can’t afford to risk a lot. That it's a part time thing for me, adding more money to my main income, don't want trading to become a burden instead of asset and start eating up my money rather than give.

if you think only learning can safe you when trading
, its completly wrong , you have to ensure regular practice session besdies this .

Adribaasmet posted:
if you think only learning can safe you when trading
, its completly wrong , you have to ensure regular practice session besdies this .

Yes. Practice makes a man perfect. To become a good trader, You have to practice more and more.

mostly use hugh leverage right now , 1:3000 trading leverage is for trading or gambling! Yes, which brokers manipulate traders trading result, they mainly inspire traders to trade with high risk reward ratio! By the way, Forex trading is not gambling! So, pro traders are comfortable with standard trading leverage.

Leverage usually depends on the investment. If my investment is good, I can use 1: 100 leverage.

AliaDare posted:
Leverage usually depends on the investment. If my investment is good, I can use 1: 100 leverage.

Yes, I think so too. Leverage should be selected depending on the investment.

Try it in the demo first to see what leverage is to use.

New traders should stick with low leverage to minimize the risk.

I guess that you don't need to trade with high leverage, because it can easily devastate your account. Novices would better start their acquintance with ordinary trading activity without leverages, because when they meet trading activity they must have to meet the market and understand how the price changes. Well, if you are eager to know how to trade with leverages then you can read some theory or wtch some videos from professionals. Even if you decide to trade with leverages, you have to start off the minimum leverage which is provided by your broker.