unsightlydray
Uczestnik z Oct 29, 2020
53 postów
Feb 24 2021 at 08:14
robindude posted:And is there any way of earning decently without using leverage? I doubt it!
Yes
High leverage = High risk = High chance of wiping out your account/funds
unsightlydray
Uczestnik z Oct 29, 2020
53 postów
Feb 24 2021 at 08:15
78678676 posted:Debt?? I don’t intend to take up a loan for trading, as wrongly (I think) suggested by a friend!
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
shaunmarsh
Uczestnik z Oct 05, 2020
65 postów
Feb 24 2021 at 09:22
Frankly, I agree with most of the suggestions here. We all know that the chances of making profits in the forex market are equal to that of making losses. Although I have chosen brokers that offer high leverage - fxview, exness, I kind of avoid it. I am saving it for the times when I will be more sure about my moves.
Marlonsmith
Uczestnik z Oct 09, 2020
28 postów
Feb 25 2021 at 04:56
As long as you know what you are doing, leverage is a good thing. But if it goes against you, it can quickly deplete your account. Use leverage only when you are ready for it. Also, never forget to use reasonable stops to avoid a higher loss of capital.
High leverage is considered risky because when a trader loses in a trade with high leverage, the loss also results in a large amount, whereas if the trader can convert it into a successful trade, the profit earned is more than the invested amount.
LyudmilLukanov
Uczestnik z Jul 23, 2020
869 postów
Feb 25 2021 at 17:28
New traders should not use high leverage in trading. Traders need to control and minimize the risk for using high leverage.
See, no doubt that there is a high level of risk with high leverage but the only thing matters is how much knowledge and experience you have for taking such risks.
Using higher leverage in a live trade is risky to traders with less or no experience in trading because if trader losses with higher leverage, it is possible for those traders to blow up their accounts.
marco_mmbiz
Uczestnik z Jul 20, 2019
372 postów
Feb 27 2021 at 14:25
unsightlydray posted:78678676 posted:Debt?? I don’t intend to take up a loan for trading, as wrongly (I think) suggested by a friend!
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
Actually 'leverage' just means that you'll get a 'credit' from a bank or liquidity provider of the broker. A max. account leverage of 1:500 means that you can trade with a maximum of 500k per trade (!) while you'll only throw in 1k of your own money. But if you'll lose 2k in that trade, where does the other 1k come from then? Right, it comes from your deposits (and that's how can get into debt). Most professional brokers have a negative balance stop out. But the higher your leverage the higher the chance you'll get to this stop out.
patience is the key
unsightlydray
Uczestnik z Oct 29, 2020
53 postów
Mar 01 2021 at 08:22
LyudmilLukanov posted:But it is so darn appealing I say :) why not risk some
New traders should not use high leverage in trading. Traders need to control and minimize the risk for using high leverage.
unsightlydray
Uczestnik z Oct 29, 2020
53 postów
Mar 01 2021 at 08:22
marco_mmbiz posted:But I won’t be owing anything more than my initial credit right? Or am I wrong here...thanks for your replyunsightlydray posted:78678676 posted:Debt?? I don’t intend to take up a loan for trading, as wrongly (I think) suggested by a friend!
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
Actually 'leverage' just means that you'll get a 'credit' from a bank or liquidity provider of the broker. A max. account leverage of 1:500 means that you can trade with a maximum of 500k per trade (!) while you'll only throw in 1k of your own money. But if you'll lose 2k in that trade, where does the other 1k come from then? Right, it comes from your deposits (and that's how can get into debt). Most professional brokers have a negative balance stop out. But the higher your leverage the higher the chance you'll get to this stop out.
Gareylinn509
Uczestnik z Nov 07, 2020
34 postów
Mar 01 2021 at 10:09
Jakemark posted:This means beginners should not opt for high leverage in the starting. It’s actually such a simple thing but getting your head wrapped around it seems like such a big ask. Like how easy it seems to follow the saying that ‘keep your emotions at bay while trading’ but we all know it is THE most hardest thing to do. It is not easy to trade like a bot. It’s our hard-earned saving after all that we are putting at line for various reasons - giving our family a better life, getting out of the money debt trap, list is endless…..
See, no doubt that there is a high level of risk with high leverage but the only thing matters is how much knowledge and experience you have for taking such risks.
Russel Gutierrez
(russellgutierrez)
Uczestnik z Jun 03, 2020
56 postów
Mar 02 2021 at 04:02
I know what you mean Garey. Been there, blown some accounts, but these seem like stuff that we all have crossed and if someone hasn’t, believe me you, you are closer to it :) I do try to trade without leverage though, having learnt few lessons (that’s what I at least think) to keep the amount of capital loss less. So what I do is, I keep separate accounts for different things, like I have one account with XTB in which I trade completely without leverage, I use SMA for entry/exit, something I have kind of mastered. And then I got another account with Fxview where I trade with leverage (not high) and use less of my own capital. So fxview account is more of my experimentation account, where I try different indicators. Results are mixed, whopping profits at times and a total lull at some other times. This even keeps the whole game exciting for me.
Mikehussey
Uczestnik z Sep 30, 2020
58 postów
Mar 02 2021 at 07:07
Beginners should focus more on the spreads than the leverages.
philipsimmions
Uczestnik z Jul 14, 2020
42 postów
Mar 02 2021 at 11:06
Mikehussey posted:No, not spreads and not even leverage. They should focus more on making their strategies. After that they should think about other things.
Beginners should focus more on the spreads than the leverages.
marco_mmbiz
Uczestnik z Jul 20, 2019
372 postów
Mar 02 2021 at 12:17
unsightlydray posted:marco_mmbiz posted:But I won’t be owing anything more than my initial credit right? Or am I wrong here...thanks for your replyunsightlydray posted:78678676 posted:Debt?? I don’t intend to take up a loan for trading, as wrongly (I think) suggested by a friend!
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
Actually 'leverage' just means that you'll get a 'credit' from a bank or liquidity provider of the broker. A max. account leverage of 1:500 means that you can trade with a maximum of 500k per trade (!) while you'll only throw in 1k of your own money. But if you'll lose 2k in that trade, where does the other 1k come from then? Right, it comes from your deposits (and that's how can get into debt). Most professional brokers have a negative balance stop out. But the higher your leverage the higher the chance you'll get to this stop out.
Just read my post again.
Here's also an interesting read for you: https://www.earnforex.com/guides/can-forex-trading-put-you-in-debt/
patience is the key
turduckenpant
Uczestnik z Oct 26, 2020
29 postów
Mar 03 2021 at 09:37
Let the traders make their own decisions. Trading is not about following the footprints of other traders. It is about paving your own way to reach success and that can be with or without leverage.
salamibrish
Uczestnik z Nov 24, 2020
28 postów
Mar 03 2021 at 12:28
High leverage can be useful but only if used correctly. New traders often feel like taking the opportunity to open larger positions to get bigger and faster results from their trades using high leverage. But if the position doesn’t play out the way it was expected, a larger loss occurs resulting in less margin for the next trade.
unsightlydray
Uczestnik z Oct 29, 2020
53 postów
Mar 04 2021 at 08:23
marco_mmbiz posted:Thanks, I’ll go through it.unsightlydray posted:marco_mmbiz posted:But I won’t be owing anything more than my initial credit right? Or am I wrong here...thanks for your replyunsightlydray posted:78678676 posted:Debt?? I don’t intend to take up a loan for trading, as wrongly (I think) suggested by a friend!
A higher leverage is way too risky, specially for a newbie who can end up getting himself trapped in a bad debt.
Actually 'leverage' just means that you'll get a 'credit' from a bank or liquidity provider of the broker. A max. account leverage of 1:500 means that you can trade with a maximum of 500k per trade (!) while you'll only throw in 1k of your own money. But if you'll lose 2k in that trade, where does the other 1k come from then? Right, it comes from your deposits (and that's how can get into debt). Most professional brokers have a negative balance stop out. But the higher your leverage the higher the chance you'll get to this stop out.
Just read my post again.
Here's also an interesting read for you: https://www.earnforex.com/guides/can-forex-trading-put-you-in-debt/