Don't kid with leverage..

This picture resumes how 90% of traders (us...) lose money thanks the leverage..

the boy sitting down is you... the other boy sliding around is ruining your tradings... 😄

Leverage is double edged sword.
But if you limit your loss with other tools then leverage is your friend.

Leverage is very dangerous. It is more likely to cut you than not.

Leverage factor can be eliminated when one can define their trading risk percentage and define the pips they can lose in a trade.
This way it doesn't matter whether the leverage is 1:50 or 1:500, the lose is limited to the percentage of the account size.

Calculator https://www.alpari.com/research-tools/calculators

forexwiz posted:
Leverage factor can be eliminated when one can define their trading risk percentage and define the pips they can lose in a trade.
This way it doesn't matter whether the leverage is 1:50 or 1:500, the lose is limited to the percentage of the account size.

Calculator https://www.alpari.com/research-tools/calculators

Not exactly with the low leverage the loss is determined by margin call

leverage is a beast

togr posted:
Leverage is double edged sword.
But if you limit your loss with other tools then leverage is your friend.

totally agreed

Leverage is a dangerous beast that can be tamed by defining or limiting the loss you are willing to take. Togr also made good points too.

BTW, I like the video

Of course leverage is dangerous. But we're not here because it's safe, are we? 😎

Dangerous, yes, but thats part of the risk factor no?

yes I agree that leverage is a double-edged sword, but I use I take rsique. I investirpeut money in my account tradng I have a leverage effect 1:1000 it is allowing me to gain aditional money each month to supplement my income.

I've always felt that newer folks fall under the spell of being provided 500:1 leverage and thinking they need to use it all simply because 'it's there'.

My trading really turned around when I realized that leveraging yourself out over 10:1 for the majority of the times you interact with the market is difficult to manage in the long run (in terms of managing risk and capital exposure over time).

Jake

FOREXunlimited posted:
I've always felt that newer folks fall under the spell of being provided 500:1 leverage and thinking they need to use it all simply because 'it's there'.

My trading really turned around when I realized that leveraging yourself out over 10:1 for the majority of the times you interact with the market is difficult to manage in the long run (in terms of managing risk and capital exposure over time).

Jake

Agree! Leverage is like the bank overdraft a business uses to manage cashflow...just because it's there, doesn't mean you to have to use all of it, all the time. 😎

I emptied by account with 2000:1 , 3 times in last 5 months
Now, i am happy with 50:1 and it is doing great for me |

Prachait

prachait posted:
I emptied by account with 2000:1 , 3 times in last 5 months
Now, i am happy with 50:1 and it is doing great for me |

Prachait

wow 3 times... you should have learned the lesson when its happened at first time.
i believe that was not leverage's fault. you just need to learn MM / risk
leverage really doesn't matter.

50:1 doing great of course... even you get stop outed you still have balance left. but whats the point? it means your system is not working already. why you care 2000:1 or 50:1

50:1 really sucks. it limits strategies and required high capital to start.

low leverage only for people who don't know how to SL trades ,lets let broker stop for you.
there is no tell low leverage = safer , it makes no sense.

Leverage is not actually what one should be afraid of. I would be much more concerned about used risk management strategies...

kanon103 posted:

prachait posted:
I emptied by account with 2000:1 , 3 times in last 5 months
Now, i am happy with 50:1 and it is doing great for me |

Prachait

wow 3 times... you should have learned the lesson when its happened at first time.
i believe that was not leverage's fault. you just need to learn MM / risk
leverage really doesn't matter.

50:1 doing great of course... even you get stop outed you still have balance left. but whats the point? it means your system is not working already. why you care 2000:1 or 50:1

50:1 really sucks. it limits strategies and required high capital to start.

low leverage only for people who don't know how to SL trades ,lets let broker stop for you.
there is no tell low leverage = safer , it makes no sense.

The guy is just being honest about his trading and is nothing to be embarrassed about past failings. The key is to learn from our mistakes and become better trader similar to a toddler who has to fall many times before learning to walk.

Leverage is not the problem if you define your stoploss and risk amount you have no problem...its when you use high leverage without a stoploss and you add to your position creating the beast.

prachait posted:
I emptied by account with 2000:1 , 3 times in last 5 months
Now, i am happy with 50:1 and it is doing great for me |

Prachait

@prachait CONTRAGUTALION ! use small leverage brings profitable returns. I also had experienced about. For example, using a leverage 500:1 i blow up my account. But if i use a leverege of 100:1 my account doubles up.

In a way, leverage is not the real demon , the problem is learn Money management.