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-   -   What leverage is best for a newbie? (https://www.forexfactory.com/showthread.php?t=652962)

adriandd Dec 26, 2017 7:12am | Post# 61

From my point of view not more than 1:100 and never risk more than 2.5 of the account

Haffizz Dec 27, 2017 8:51am | Post# 62

The smaller leverage you choose, the less you'll lose. But, it's better to experiment! Some people are comfortable with 1:20, some of them are working with 1:1000. But I'd not recommend you using such a big leverage without any prior experience. Try at least 1:100 before doing that

Eagle-Eye Dec 27, 2017 9:02am | Post# 63

{quote} You are talking about security. What is more secure. To have 10000€ on account and open trade with 500€ SL or to have 500€ on account with same 500€ SL and 9500€ on side for another trades?
Please read again. I which case you can lose and risk more?

Supertrader9 Dec 27, 2017 10:46am | Post# 64

What leverage will you advice as a newbie trader to use? Do you think 1:1000 is too high for inexperience trader to use? Because I have been advised against using high leverage but again I thought it broker have provided it why wonít I use it. What you think?
For new traders, 0 leverage. Trade a demo account. When you are consistently profitable on a demo accounnt then you would know how much leverage you should be using.

Matjaz Dec 27, 2017 1:04pm | Post# 65

{quote} For new traders, 0 leverage. Trade a demo account. When you are consistently profitable on a demo accounnt then you would know how much leverage you should be using.
Great advice!

MarkFxAnde Feb 3, 2018 5:28am | Post# 66

Sometimes I feel leverage ratio is just a number, nothing without it. If you know how to manage risk when trading then you can earn profit very rapidly by using high leverage with small amount. But by and large traders in particularly the newcomers generally canít do that.

Butterscotch Feb 5, 2018 9:01am | Post# 67

The best is your knowledge and skills which can handle the risk. If you can manage your account with high leverage then try it on the demo then use it for real too but practice it more so that you can not a loss.

waverhythm Feb 5, 2018 6:48pm | Post# 68

i think leverage is not the problem. it's rather the lot size/position size. the higher the leverage, the bigger the lot size you can choose to trade.
and the bigger the lot size, the bigger the loss/profit.
and as they say, dont risk more than 2% of your trading account balance.

so you need to learn about lot size, pip value, leverage, margin, margin level, margin call, stop out level etc.
when you know all that you should calculate 2% of your account, that's the stop loss size (some trading signals that needs bigger stop loss size than 2% of your account should be ignored). hopefully you have not been confused by this, otherwise use google.

but then you should also know that it's better to not trade too big lot sizes. what's a too big lot size? if the lot size corresponds to more money than you can afford to lose. money that you have in your own pocket or bank accunt (not trading account). why am i saying this? say you would trade a too big lot size and then a very strong price movement occurs, you know the kind that stoplosses wont be triggered of, the one like Swiss Franc Black Swan Event 15 january 2015. also some news release and other events can do harm because stop losses doesnt work when the price moves too fast. if account goes to negative balance i dont know what can happen but most probably broker would want the trader to pay back the losses.
thats why you should trade what you can afford to lose and manage risk. also a good idea is if you make big profits, withdraw some of them every now and then.

Butterscotch Feb 12, 2018 9:21pm | Post# 69

Agree, a newbie always takes a lot size for trading while working on a demo. Even as a newbie I have also done the same with my demo work but after time I have learned a lot and maintain my demo account with small size trading.

vpr1 Feb 13, 2018 11:21am | Post# 70

I would say 1:3 at most. And even that might be too high.

GeorgeBaile Feb 13, 2018 1:38pm | Post# 71

I would say 1:3 at most. And even that might be too high.
1:3? Cool! I think, there is no problem until the 1:100.

waverhythm Feb 13, 2018 2:32pm | Post# 72

I would choose 1:100. The less leverage you choose the less free margin you will have. it's important to have enough free margin, otherwise you risk to be stoped out when you enter a trade.

Ivanyo Feb 13, 2018 11:34pm | Post# 73

I would recommend very little or no leverage at all.

Using leverage as a newbie is asking to be burnt.

MarkFxAnde Feb 14, 2018 5:08am | Post# 74

From all trading tools in Fx trading leverage contains huge risk, thatís why we generally fall a great risk when using leverage without exact trading plan, but leverage can make us profitable of course if there is most powerful analyzing risk managing approach, otherwise leverage works always as like killer. So, be careful.

mlawson71 Feb 15, 2018 11:23am | Post# 75

I would recommend very little or no leverage at all. Using leverage as a newbie is asking to be burnt.
Most people use some leverage at least though, because trading with no leverage requires a pretty large account. I don't think that the majority of traders can avoid it altogether.

Flieldel Feb 26, 2018 5:30pm | Post# 76

Speaking of leverage for newbies, I'm going answer briefly. The lower, the better=) Indeed, the lower leverage you've got, the less burden there is on your deposit.

MarkFxAnde Mar 1, 2018 3:59am | Post# 77

Tuff question , it completely depends on newcomers trading plan and money management , generally beginners level fall a great loss when using leverage due to lack of real money management , in my trading career , as a newcomer I used various leverage ratio in demo account to see the performance how it works , this approach helped me much in a real account for avoiding unfortunate losses. All newbie should practice this approach

MitchellMcC Mar 1, 2018 5:11am | Post# 78

When I was a newcomer I used 1:100 leverage in demo and 50:1 in live , it was really comfortable for avoiding losses and risk when trading.

AgusKurniaw Mar 4, 2018 3:13am | Post# 79

What leverage will you advice as a newbie trader to use? Do you think 1:1000 is too high for inexperience trader to use? Because I have been advised against using high leverage but again I thought it broker have provided it why wonít I use it. What you think?
For newbie it's a complicated thing. With low deposit, you need high leverage to trade. But once you crack the art of trading. You have to lower your leverage. And moreover it largely depends on your trading strategy and risk management also. I would suggest you not use more than 200:1 leverage as a newbie.

DwainUK Apr 13, 2018 9:09am | Post# 80

For the beginners 1:50 or 1:100 leverage is cool. But according to the news, I feel everyone will be 1:30 very soon


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