High leverage = High risk?
Členom od Oct 29, 2020
53 príspevkov
Jan 24, 2021 at 09:34
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?
Disclaimer: I am not just another trader who is dreaming of a yacht life, I just want to be able to get by with the basics of life through trading profits.
Suggestions appreciated.
Disclaimer: I am not just another trader who is dreaming of a yacht life, I just want to be able to get by with the basics of life through trading profits.
Suggestions appreciated.
Členom od Jul 27, 2020
81 príspevkov
Jan 25, 2021 at 06:40
The use of leverage that brokers offer in principle makes sense, you should be a little prepared and learn all the nuances of how it works.
Členom od Nov 03, 2020
70 príspevkov
Jan 25, 2021 at 08:37
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?
Členom od Oct 29, 2020
53 príspevkov
Jan 27, 2021 at 06:16
Beagelv posted:All up for learning mate!
The use of leverage that brokers offer in principle makes sense, you should be a little prepared and learn all the nuances of how it works.
Členom od Oct 29, 2020
53 príspevkov
Jan 27, 2021 at 06:17
ddarko3 posted:I hear about it being a double-edged sword and all, but without it, I doubt I will be able to gather anything.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?
Členom od Oct 29, 2020
53 príspevkov
Jan 28, 2021 at 07:17
forextrader777 posted:I have no intentions of jumping the gun, but when I do go live, I wanna know if one should start with all of their own capital or use little bit of leverage
Leverage does help in multiplying your profits but don't forget that losses will also be in multiples which is why it needs proper understanding of how it works. So, it’s better to learn about it’s concept first.
Členom od Jul 17, 2020
42 príspevkov
Jan 28, 2021 at 10:53
Leverage sure is a double-edged sword, but without leverage trading would not bring in any scalable results. That is unless you have heaps of money to invest. How much would a movement of a few pips give on 3 or 4k. That also might be considered a big amount for a lot of current investors in the market. Considering most are part-timers, and some even college lads.
Had it not been for leverage, I would have stopped after meagre earnings. Still trading solely because of high leverage.
Had it not been for leverage, I would have stopped after meagre earnings. Still trading solely because of high leverage.
Členom od Jan 13, 2021
52 príspevkov
Jan 28, 2021 at 19:12
On small accounts you need it to be fair to have a chance at trading
Členom od Jul 17, 2020
42 príspevkov
Jan 29, 2021 at 12:06
Garrywilson posted:If you use a broker that offers negative balance protection, there’s no way that you’ll be risking owing anything to the broker. Then there’s stop loss as well to the rescue. If I’m not wrong all brokers offer these features, and if yours don’t, simply transfer your funds to a better broker.
I find it too risky to use leverage. Can’t imagine owing money to the broker and defeat the whole purpose of being in the market.
Členom od Nov 02, 2020
57 príspevkov
Jan 29, 2021 at 14:15
In order for it not to be so costly, you need to correctly, correctly calculate and prescribe in your trading plan.
Členom od Jan 17, 2021
31 príspevkov
Jan 29, 2021 at 18:54
Faujinn posted:which broker should i choose for the your suggested plan Faujinn
In order for it not to be so costly, you need to correctly, correctly calculate and prescribe in your trading plan.
Členom od Jul 20, 2020
298 príspevkov
Jan 31, 2021 at 01:53
The higher the leverage, the higher the risk. So it is very important to be careful about leverage.
Členom od Oct 29, 2020
53 príspevkov
Feb 01, 2021 at 06:22
dutchy1986 posted:That’s what I think, can’t put in all my savings for trying my hand at trading, leverage is important.
On small accounts you need it to be fair to have a chance at trading
Členom od Oct 29, 2020
53 príspevkov
Feb 01, 2021 at 06:24
Faujinn posted:Ya and that’s why my plan as of now is based on risk management, every decision revolves around it, including leverage.
In order for it not to be so costly, you need to correctly, correctly calculate and prescribe in your trading plan.
Členom od Oct 29, 2020
53 príspevkov
Feb 01, 2021 at 06:25
LeviSievwright5 posted:Certainly! I am devoting maximum time on my risk management part of the trading plan. Not planning on risking more than 1%, and going to maintain a ratio of 1:3 for using leverage. Hopefully I’m on the right track.
The higher the leverage, the higher the risk. So it is very important to be careful about leverage.
Členom od Jun 26, 2020
327 príspevkov
Feb 01, 2021 at 09:44
right now i am using high leverage most of the time in demo ,
it supports me to avoid unfortunate risk and losses when trading in a real account.
it supports me to avoid unfortunate risk and losses when trading in a real account.
Členom od Oct 29, 2020
53 príspevkov
Feb 02, 2021 at 04:54
Tradelist45 posted:I don’t get it! Did you actually mean you are using “high leverage” which is keeping you safe????
right now i am using high leverage most of the time in demo ,
it supports me to avoid unfortunate risk and losses when trading in a real account.
Členom od Oct 29, 2020
53 príspevkov
Feb 03, 2021 at 06:14
blandpatsyy posted:You’ve just echoed my thoughts, without margin trading I doubt I will be able to make any money here. Thanks for the motivation :)
Leverage sure is a double-edged sword, but without leverage trading would not bring in any scalable results. That is unless you have heaps of money to invest. How much would a movement of a few pips give on 3 or 4k. That also might be considered a big amount for a lot of current investors in the market. Considering most are part-timers, and some even college lads.
Had it not been for leverage, I would have stopped after meagre earnings. Still trading solely because of high leverage.
Členom od Nov 16, 2020
16 príspevkov
Feb 03, 2021 at 10:35
RelySmith posted:It doesn’t need to, Robinhood simply doesn’t allow short selling. But sadly there’s no forex option there. So I had to make an account with Fxview. Zeroed in on this one cause of the wider currency options. And ya, they very clearly offer negative protection.blandpatsyy posted:I doubt if Robinhood offers negative balance protectionGarrywilson posted:If you use a broker that offers negative balance protection, there’s no way that you’ll be risking owing anything to the broker. Then there’s stop loss as well to the rescue. If I’m not wrong all brokers offer these features, and if yours don’t, simply transfer your funds to a better broker.
I find it too risky to use leverage. Can’t imagine owing money to the broker and defeat the whole purpose of being in the market.
Členom od Jan 22, 2021
125 príspevkov
Feb 03, 2021 at 11:54
I think when newbies enter the live forex market, they want to book more profits with very small amounts, so leverage attracts them. But it should be kept in mind that leverage is associated with a certain amount of risk. While it can push your trades to make profits also at the same time it can put you in loss which is even more than your balance you have. When I started, I used to look for a 1:30 leverage ratio with a minimal balance that I can handle. This keeps my risk minimal. You can gradually increase your leverage ratio depending upon your earnings and understanding.
