High leverage , High risk ?

Sep 24, 2017 at 06:27
Przeglądane 4,163
100 Replies
Uczestnik z Aug 20, 2018   9 postów
Aug 20, 2018 at 13:35
One would need big account for risk 1-2% . If I do that i make only cents on a trade. What the point then
Uczestnik z Aug 27, 2017   994 postów
Aug 20, 2018 at 13:37
LongVision posted:
 if you are taking 1-2% risk per trade and trading few currency pair you may need leverage of 1:10 only. So most of time you are using only part of leverage that is provided by broker if you use strict money management.

Yes, 1-2% is the decent amount; trading with an aggressive trading leverage is always costly. In addition, money management is one of the most important issue here.
Uczestnik z Apr 07, 2015   55 postów
Aug 22, 2018 at 06:37
Guys, guys... hold your horses.
The leverage used has nothing to do with risk management.
Those are two completely separate things.

You can risk 2% with 1:1 leverage and with 1:500 leverage.
Uczestnik z Aug 23, 2018   2 postów
Aug 23, 2018 at 14:13
CarlosMZ posted:
Guys, guys... hold your horses.
The leverage used has nothing to do with risk management.
Those are two completely separate things.

You can risk 2% with 1:1 leverage and with 1:500 leverage.

I totally agree with this. Leverage itself is only a tool and has nothing to do with risk. Its your choice how you use it. Limiting leverege for everybody is like banning sharp knives because some people could harm themselves.
Uczestnik z Aug 29, 2018   4 postów
Sep 02, 2018 at 07:03
CarlosMZ posted:
Guys, guys... hold your horses.
The leverage used has nothing to do with risk management.
Those are two completely separate things.

You can risk 2% with 1:1 leverage and with 1:500 leverage.


if you are unitising 500 leverage you can't

$100 account 500 = 50000
if you open 0.5 lot
spread itself almost 5% and -10 pip is margin call on most broker


Uczestnik z Sep 03, 2018   19 postów
Sep 03, 2018 at 13:40
It looks like risky but it's not really risky in our understanding. The only difference between leverages is bad to worse differences in losses. Right mindset or sound knowledge is much suitable for right use of leverage, gambling can blew up your account too early.
Uczestnik z Feb 22, 2011   4862 postów
Sep 03, 2018 at 13:55
TeraPips posted:
It looks like risky but it's not really risky in our understanding. The only difference between leverages is bad to worse differences in losses. Right mindset or sound knowledge is much suitable for right use of leverage, gambling can blew up your account too early.

Leverage has nothing to do with money management.
With good money management + high leverage you can have higher profit and the same compared to low leverage
Uczestnik z Aug 29, 2018   10 postów
Sep 03, 2018 at 14:41
That is so right. People lose money because they don't use money management techniques or use a rubbish strategy. Leverage has nothing to do with it. I could use a 1:1000 leverage account but with proper usage or Lot sizing and stop loss I can safely manage my losses
Uczestnik z Aug 30, 2018   25 postów
Sep 04, 2018 at 14:02
The bigger the amount of leverage on the capital you apply, the higher the risk that you will get. Note that this risk is not always related to leverage-based margins although it can affect if a trader is not careful.
Pips are absolute aphrodisiac, so trade with your brain not your lust. Forex will always be the same.
Uczestnik z Feb 22, 2011   4862 postów
Sep 05, 2018 at 10:31
voketexpert posted:
The bigger the amount of leverage on the capital you apply, the higher the risk that you will get. Note that this risk is not always related to leverage-based margins although it can affect if a trader is not careful.

I have a feeling you mix up 2 kind of leverage
- leverage provided by your broker - the higher the better (though the highest values come from obscure brokers)
- leverage used when trading - yes trading big lots on small deposit is risky. But such risk is not controlled by leverage but by tools like stop loss and equity protecton.
jnimc
forex_trader_404449
Uczestnik z Feb 19, 2017   12 postów
Sep 05, 2018 at 12:08
do not trade - no risk.
Uczestnik z Sep 06, 2018   10 postów
Sep 06, 2018 at 10:33
jnimc posted:
do not trade - no risk.

No risk - No reward. We are here to trade. taking risks is part of that. It is what makes it exciting
jnimc
forex_trader_404449
Uczestnik z Feb 19, 2017   12 postów
Sep 07, 2018 at 05:30
this was exactly what I said, mate 😄
Uczestnik z Sep 03, 2018   19 postów
Sep 07, 2018 at 05:35
It's very important to have good or acceptable risk level, not really wise to get into high risk without good experience.
Uczestnik z Sep 07, 2018   8 postów
Sep 09, 2018 at 06:03
very true. high risk stuff is purely sepcualtive and should use small Lot size. newbie don't know about that stuff so get problem when trade.
Uczestnik z Aug 22, 2018   10 postów
Sep 10, 2018 at 14:26
jnimc posted:
do not trade - no risk.
true! no trade no risk, no gain
Uczestnik z Feb 22, 2011   4862 postów
Sep 10, 2018 at 14:30
jnimc posted:
this was exactly what I said, mate 😄

actually do not trade advice is wise
as many traders are losing money
Once I wrote to trash half of your forex deposit to sever and use the second half for your family
Still better than waste it all
Uczestnik z Aug 27, 2017   994 postów
Sep 11, 2018 at 14:55
TeraPips posted:
It's very important to have good or acceptable risk level, not really wise to get into high risk without good experience.

Yes mate, risk reward ratio is very much important. On the other hand, I see overtrading is one of the most common problem here! By the way, in my trading I never go for more than 2% risk ratio in my per trade.
Uczestnik z Sep 01, 2018   12 postów
Sep 11, 2018 at 14:58
Higher the risk higher the reward and vice versa.
jnimc
forex_trader_404449
Uczestnik z Feb 19, 2017   12 postów
Sep 13, 2018 at 06:32
well, it's not always true - most of the big guys trade without risk... cos if in trouble they are bailed out 😄
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