How much Important of Leverage for Trading

AliaDare posted:
Leverage is very detrimental to low investment. Your account is always protected when the leverage is low. It is very important to keep low leverage to follow money management and risk management. According to the trading plan, it is possible to make a consistent profit by working with low leverage.

hello sir.
thank you for explanations.
i have one more question please. you told that low leverage protects an account. but if i put leverage 1:30 i need more money on my acc trade. that is i cannot trade. so i need to put more higher leverage. what about 1:100? is it ok?

Leverage is very useful for low investing traders. it helps them to make more profit with their little investment.

You can make a lot of money because of leverage if your investment is low and short term. It is very important to protect your account if the leverage is low.

Everyone is in commenting on this post to just increase their post count. Nice people. Even the actual questioner is not in this world now. But we're still making good use of his years-old thread. SO considerate of you all. Keep it up.

Leverage is truly a double-edged sword. You must only use it when you know where the market trend is going.

Lorencecolling posted:
Leverage is truly a double-edged sword. You must only use it when you know where the market trend is going.

Yes it's true, but also how much orders you want to open.

I may be wrong but I see leverage as an option that increases your chances of losing more money than you can afford to lose. I don’t know how come people are so brave to take the risk. I have never used leverage more than 5x.

Leverage is an important financial tool which an investor should consider when choosing a broker, it allows an investor to grow his market exposure to a level that exceeds the initial investments

Harshalgibbs posted:
I agree that leverage can make it easy for you to make more profits. But at the same time, it also enhances the chances of you losing money.

Not necessarily. You can use high leverage and make sure you have risk management and lot size correctly chosen. It is great to compound accounts if done properly

Many options in using leverage, and in theory and risk, using smaller is better, as I use leverage to keep the 1:100, do not let too many open positions

Leverage is the most effective technique to create a large sum of money with a little quantity of beginning capital.

Leverage is truly called the double-edged sword. You must only use it when you are sure about the market trend and know that you will win. If you are even a little unsure, I don’t suggest using leverage.

Without leverage fx trading would not be possible unless you were rich. leverage is king in this world.

It enables more people to actually trade but by the same token it allows more people with poor risk management to misuse it and lose their money.

the leverage could be dangerous if you have no trading plan with zero risk management, so traders should develop the money management first of all.

So true. leverage can be very dangerous with no risk management. Too many trader make small deposit then enter a trade at 1Lot and lose every thing

I have seen many blowing their accounts with leverage. Leverage is that much powerful that it can take you on clouds or even to the core of the earth. Play with it safely.

Well, I would say that leverage is not vital for trading. I mean that you can easily do without leverage, however, you will have smaller profits. To tell you the truth, I think that the newbies should stay away from trading with leverage because not every beginner understands how to evaluate the risks which they have within a concrete deal. Before trading with leverage you should understand how to measure the risks and manage your budget in order not to lose everything within sheer minutes. Later on you can think of using leverage in your trading but with caution. You definetely should be aware of money and risk management in order to make your trading more or less safe for your budget.
Speaking of high and low leverage, it is important to note that the higher leverage you have, the more risks you take. I don't see any problems of trading with huge leverage. The only thing is that you should be careful about the position size. You can regulate it as if you wish.

As usual, you need to find the golden mean. If the leverage is too high, then, surely, the potential profits will high, but you will run more risks. Somtimes the leverage can lose $100 within a minute, that is why I strongly recommend to trat leverage with caution. It is hard to say what leverage should be specifically because we all are different and one man's meat is another man's poison. So, you should decide for yourself.