How true is High leverage = High risk?

I’m a stickler when it comes to using pnl. Never have, never will trade without properly scrutinizing the potential losses and profits in every trade, no matter worth a lot of money or small.

What is the best way of knowing if a trade is too risky?

High leverage trading can put investments at risk. Every trader should use the lowest leverage. This protects the trading investment.

How long have you been trading for? I always follow the trend. And follow the ATR method of stop loss.

Leverage has almost nothing to do with risk, if inspected on its own.
Lot size, leverage, Stop Loss and what % the stop loss is at compared to your equity is what you'd use to calculate risk.
You should probably take some classes before trading if you are asking these types of questions

Isn’t trailing stop loss a better use of sl? Also of late I have been relying a lot on the economic calendar. Really helpful in knowing if a particular time is good to trade.

posted:
Are high and low leverage two sides of the same coin? I have started fresh in forex and not able to make a right judgment for a good leverage.

Not sure how correct it is to say there are high risks with high leverage.

Recommendations needed from experience holders.

No one should ever use a leverage above 1:500. This should be the overall maximum for everyone. Everything above is like you'd go to the bank and they'd give you a credit that is more than 500 times higher than your income, knowing you'd never ever get the chance to pay a possible loss back anytime soon (like if your monthly income is like 2k and they'd give your more than 1 million; that's not gonna happen). The most preferable leverages are between 1:10 and 1:500, but that's just my own opinion. Personally I prefer 1:100, but actually I trade with 1:500 on all my used brokers (because they won't give me 1:100), except my Cysec-/ESMA-regulated one where I get a max. of 1:30 which is still okay.

another sharp point is your size of contract. It can be easily increased or lowered. Your trade location might be an influential factor with margin requirements and hence the max leverage. Most intermediate traders (include me too!) prefer a lower bet size and for that purpose, Metatrader 4 comes into picture as it allows that.
When I was into the process of transitioning to Fxview, I cancelled out a few shady brokers and preferred to go with regulated ones that also allowed support for MT4 and other trading platforms. Fxpro was my closest choice to catch up with MT5 and cTrader.
I just narrowed down to ecn as with my options shortlisted, Fxview was providing it. I prefer ecns for their adaptability to spreads when markets are highly volatile. I like to be pinned with low spreads afterall.

True that, an ecn user here. Wouldn’t settle for anything else. I find so much comfort in knowing that my funds are kept segregated from other investors capital. Even if it’s less, I always want it that way.

I haven’t thought much about this aspect yet.

The ability to manage capital and certain skills can make the risks much less, and if you still use good leverage, like the broker Amarkets 1: 1000, then, in principle, there are no problems.

I spent half a year just trying and deliberating different brokers and kinds of accounts. I think every trader should.

Use low leverage for better risk management

Dorigda posted:
The ability to manage capital and certain skills can make the risks much less, and if you still use good leverage, like the broker Amarkets 1: 1000, then, in principle, there are no problems.

It is ultimately all about risk management. Because I think not using leverage is just playing it too safe, and that can certainly not lead to big gains.

I have actually been concentrating more on trying to find out different sorts of indicators on different strategies. Researching on what works best with what, and what time in the market. I am a very firm believer that it is all about one’s own skills rather than depending on a broker for profits.

No denying the fact that profits ultimately depend on the skills of a trader. A broker can only help by offering certain leverage. Higher the better!

High leverage is only safe in the hands of very experienced traders. It’s not meant for all.

As I traded in the past, besides the leverage concern, I do assume that some of most underrated tools come in handy to arbitrate your ongoing trades.

Being a FXTM user, I mostly spent my time with: Pivot Point Strategy, Forex News Timeline, Margin Calculator, Profit Calculator and Invest Profit calculator.

@Lorencecolling : just out of curiosity, do you also feel that such tools are helpful in settling your trades to some extent? How’s it with yours, fxview?
Would appreciate a reply.

williamhayes posted:
As I traded in the past, besides the leverage concern, I do assume that some of most underrated tools come in handy to arbitrate your ongoing trades.

Being a FXTM user, I mostly spent my time with: Pivot Point Strategy, Forex News Timeline, Margin Calculator, Profit Calculator and Invest Profit calculator.

@Lorencecolling : just out of curiosity, do you also feel that such tools are helpful in settling your trades to some extent? How’s it with yours, fxview?
Would appreciate a reply.

Add periodicals to the list. It’s an awesome tool!