LyudmilLukanov posted:you need to try to reduce any losses, by such methods you can improve your work in forex!
Leverage actually boosts your profit or loss multiple times. Try to minimize the usage of leverage in order to avoid capital losses.
Dec 08 2021 at 21:34
Managing money is more difficult than earning money. Taking a little risk is very important to make money but it is important that you must take calculated risks.
Feb 03 at 15:02
A friend of mine who trades professionally told me that the best leverage is low leverage such as 1:1 or 1:5. He told that such leverage is the best thing for long-term trading because in this case you will not be kicked out of the market if a big pullback occurs.
Well, I tried those leverage sizes on a demo account. He was right as for pullbacks. With such leverages, they are not scary anymore, but it raises one question. To trade with such leverages, you need to deposit more, while leverage allows to save. I think it makes sense to keep trading with higher leverage, putting aside a certain percentage of earnings on a separate account where you could traded with very low leverages. On the other hand, if you have extra money, you can try trading with low leverages from the very beginning.
Well, I tried those leverage sizes on a demo account. He was right as for pullbacks. With such leverages, they are not scary anymore, but it raises one question. To trade with such leverages, you need to deposit more, while leverage allows to save. I think it makes sense to keep trading with higher leverage, putting aside a certain percentage of earnings on a separate account where you could traded with very low leverages. On the other hand, if you have extra money, you can try trading with low leverages from the very beginning.
If you want to use leverage just work out your risk amount on every instrument on your exact stop loss!
If 2% of your account works out to $200 - and you want to use a 20 pip stop loss - adjust your lot size to get exactly that pip value and you will not lose a sent more.
Different leverages will give you different pip values, but on your one account you are not going to change it.
If 2% of your account works out to $200 - and you want to use a 20 pip stop loss - adjust your lot size to get exactly that pip value and you will not lose a sent more.
Different leverages will give you different pip values, but on your one account you are not going to change it.
This skill always plays a very important role. As for me, this can really help a trader.
WimConrad posted:Yes, this is quite right
If you want to use leverage just work out your risk amount on every instrument on your exact stop loss!
If 2% of your account works out to $200 - and you want to use a 20 pip stop loss - adjust your lot size to get exactly that pip value and you will not lose a sent more.
Different leverages will give you different pip values, but on your one account you are not going to change it.
As for me, these aspects play a very important role for a trader. I believe that this is what allows the trader to correctly interpret the understanding of the work process.
Feb 09 at 03:58
Labelled as a double-edged knife, leverage is a financial instrument that enables the traders to borrow capital for gaining exposure and to maximise profits. It is very important for traders to strategise, minimise and effectively manage leverage as well as risks associated with it as highly leverage trades often lead to depleting trading accounts and liquidation.
Feb 11 at 09:42
its a fine reply with good information , thanks for your nice reply.
It is very important to be able to manage your money wisely. This will really lead to a positive result.
The ability to properly manage money plays a very important role. Thus, it is much easier for a trader to achieve a result.
It is important to pay enough attention to these aspects in order to understand their impact on the results of the work.
Feb 14 at 03:59
Money management is extremely important when it comes to trading using leverage as over-leveraged accounts often lead to depletion of funds. Further, if the trader fails to cover up, it leads to liquidation of all trades.
Feb 17 at 03:58
Leverage is one of the few things that attracts a number of traders to forex but it also holds the tendency to offer a bitter-sweet experience to traders. If not used carefully, leverage can deplete all your trading capital and leads to liquidation of trades. Therefore, it is important to follow solid money management rules while using leverage.
Money management reduces risks and leverage can be an advantage or an disadvantage based on your trading experience.
Both are most important part in trading so using it wisely can be profitable for example I use an leverage of 500:1 so I take 1-2% risks.
Both are most important part in trading so using it wisely can be profitable for example I use an leverage of 500:1 so I take 1-2% risks.
It should be understood that this knowledge does not come immediately. This takes a long time and hard work.
As a beginner in forex, how can money management help me in forex trading and which is the best leverage to use?
Do you think it is worth trying leverage for work?
AwareWeekly, as a professional he`ll trade with millions may be. Then he`s absolutely right. But for a simple retail traders the bigger leverage is needed because they`re using way low funds.
