High leverage = High risk?
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Mar 08, 2021 at 12:37
Johnathankim posted:It is more about being comfortable in what you are doing. If you are conservative and don’t like to take many risks, a lower leverage level like 1:5 or 1:10 can be more appropriate for you. But if you have gained some experience and know that you can manage risk with even high leverage, you can go beyond 1:100 also.Gleywilleyy posted:Yeah. Leverage can be quite helpful at times. Better to use it wisely.
@Garey I used to think that too but when I actually used leverage, it kind of increased my capital efficiency. It also works well during low volatility periods. I was recently trading with ib and fxview and I worked with some highly leveraged positions but the result was pretty good so there’s that. I think there is more to leverage and we can actually use it for our benefit. Just sharing my 2 bits here.
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Mar 09, 2021 at 06:50
AmDiab posted:Trading without analysing the market? That would be like a death sentence for the account :)
high leverage not high risk always if you know how to manage risk ,
because most of the time we trade with no analysis , as a result we become loser.
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Mar 09, 2021 at 06:51
BarronLucas posted:But using leverage with a proper market research and analysis would do us good right?
Using high leverage does have higher risks and possibilities of blowing up your account.
When a trader uses high leverage and losses in a trade the loss is higher as the leverage and would be difficult for the trader to invest in the next trade.
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Mar 09, 2021 at 12:14
deborahbennett posted:True, in a way! But don’t you think that the forex market has no place for those who are not ready to take risks. At some point in time, every trader will have to take one or the other kind of risk.Johnathankim posted:It is more about being comfortable in what you are doing. If you are conservative and don’t like to take many risks, a lower leverage level like 1:5 or 1:10 can be more appropriate for you. But if you have gained some experience and know that you can manage risk with even high leverage, you can go beyond 1:100 also.Gleywilleyy posted:Yeah. Leverage can be quite helpful at times. Better to use it wisely.
@Garey I used to think that too but when I actually used leverage, it kind of increased my capital efficiency. It also works well during low volatility periods. I was recently trading with ib and fxview and I worked with some highly leveraged positions but the result was pretty good so there’s that. I think there is more to leverage and we can actually use it for our benefit. Just sharing my 2 bits here.
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Mar 10, 2021 at 10:19
ddarko3 posted:Have you ever lost a lot of money like this?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?
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Mar 11, 2021 at 06:52
Numero, It’s right that forex investments offer potential profits but at the same time, also have downside risk. Sometimes, you may lose more than the value of your transaction when trading on margin. But if you already have been in the market for some time and have learnt risk management, things can get easier for you. My first leverage ratio was 1:5 with oanda. I got an idea about using it and in my next trade, I increased the ratio to 1:50. It turned out to be a profitable trade later. Had I not taken the risk, I would have not made that much.
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Mar 11, 2021 at 07:07
That is exactly my thought. Without making calculated bold moves, making money can be near impossible in the forex market. Or any other financial market to think of it.
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Mar 11, 2021 at 07:08
mortanlais posted:I am sure there’ll be mixed responses for this. Some traders would have gained heavily while some would have lost it all, would ultimately depend upon every trader’s strategy used isn’t it?!ddarko3 posted:Have you ever lost a lot of money like this?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?
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Mar 13, 2021 at 16:30
(labots Mar 13, 2021 at 16:30)
'High leverage does have higher risk involved but using high leverage also has benefits because the profit earned is higher than the invested capital in a trade.
But high leverages are mostly used by experienced traders that take risks and place accurate or profitable trades.'
But high leverages are mostly used by experienced traders that take risks and place accurate or profitable trades.'
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Mar 15, 2021 at 09:32
Leverage ratio got to be maintained at such a level where if the trade goes in the opposite direction (as we have all seen) because of a sudden news flash or something, the losses shouldn't be such that our account is blown. Its happened with me so many times that despite the use of sl (as it is I'm not very ambitious with its placement - I keep it close to my entry) I have suffered loss because of leverage that I would be much happier without. Now I am a firm believer of not using leverage. If my trade strategy isn't good enough and can't get me profits as it is, it's no good a strategy and needs modification.
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Mar 15, 2021 at 11:06
BarronLucas posted:Yes, true! But everyone here is talking about using leverage the right way. If you know risk management and money management, you won’t take any unnecessary steps, be it using high leverage or something else. It is all about knowing what you are doing.
Using high leverage does have higher risks and possibilities of blowing up your account.
When a trader uses high leverage and losses in a trade the loss is higher as the leverage and would be difficult for the trader to invest in the next trade.
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Mar 16, 2021 at 10:43
I don’t see any point in believing that high leverage can be harmful to your trading account. For me, the more leverage, the better the trades. I use leverage up to 1:200 with swissquote and xtb. I do make losses but they all get recovered after I make profits. I don’t think you can have a successful trading career without taking risks.
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Mar 17, 2021 at 05:43
The market moves can be quite unpredictable. But if you won’t take risks, you won’t be able to make profits. If not high leverage, you can start with using low leverage and increase it with time. It is better not to take risks when you know what the clear result will be.
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Mar 18, 2021 at 09:53
No one wants to lose, right? But I don’t understand why traders refrain from analysing the market before making such bigger moves that result in nothing more than losses. Trading is a risky job and it must not be taken lightly. I have been into trading for the last few years but there hasn’t been any strategy that I applied directly on my live account. I demo trade with pepperstone every time I see profitable market conditions to use leverage. It’s a longer procedure but I’m in no hurry to lose :)
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Mar 19, 2021 at 06:43
Demo account is best way to learn and practice no matter what market you are in. Every investment market has its own risk. So, invest with caution.
Vanza Dorbey (vanzadorbey)
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Mar 20, 2021 at 00:43
Never trade with high leverage...you will loose your money.
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Mar 23, 2021 at 07:05
russellgutierrez posted:Yeah the account balance, position size and stop-loss level are factors that’ll help calculating the risk I suppose. Better say, I calculate mine keeping in mind these 3 aspects.gildlef posted:The level of leverage isn’t important if the risk management rules are used properly.
I don’t see any point in believing that high leverage can be harmful to your trading account. For me, the more leverage, the better the trades. I use leverage up to 1:200 with swissquote and xtb. I do make losses but they all get recovered after I make profits. I don’t think you can have a successful trading career without taking risks.
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Mar 23, 2021 at 07:25
Cooper078 posted:
Trading with higher leverage is risky, but higher leverage can also bring in higher profit value than an average leverage trade.
Average leverage! Hmm, how much would that be
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Mar 23, 2021 at 07:26
vanzadorbey posted:For sure like…?
Never trade with high leverage...you will loose your money.
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Mar 24, 2021 at 06:30
Jordan5ith posted:I think you mean ‘trader’ buddy, you’re on the right page here, I’ve been deliberating over the same issue.
Should a beginner broker trade with higher leverage or stick to lower leverage for most live trading experience?
