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Is it good use high or low leverage as a beginner?

  • #61
  • Aug 25, 2017 11:50am Aug 25, 2017 11:50am
Forex trading does offer high leverage in the sense that for an initial margin requirement, a trader can build up and control a huge amount of money, and high leverage means high risk. Leverage is a “double edged sword”. When you are right on your trade this leverage multiplies your gains. When you are wrong, however, same leverage exacerbates your losses. A common mistake newbie traders make is to use inadequate leverage with no regard to the size of their account balance, which could be devastating. Without concern over the downside risk, high leverage can quickly wipe trader’s funds.
  • #62
  • Aug 25, 2017 3:35pm Aug 25, 2017 3:35pm
I would only recommend that new traders being unaware of the market conditions should keep the leverage low in start because high leverage can bring high damages to them.
  • #63
  • Aug 27, 2017 8:09am Aug 27, 2017 8:09am
Quoting forex killer
I would like to use 1:100 leverage but don't know which broker have such kind. fxdd is 200 and oanda max is 50:
Are you making consistent profits using play money? if not why are you moving to real money? Not the way I did it by the way, but then I lost a fortune before I learned my lesson
I live entirely from the growth of my personal trading account
  • #64
  • Edited Aug 30, 2017 8:14am Aug 29, 2017 4:32pm | Edited Aug 30, 2017 8:14am
Quoting faisal13
Forex trading does offer high leverage in the sense that for an initial margin requirement, a trader can build up and control a huge amount of money, and high leverage means high risk. Leverage is a “double edged sword”. When you are right on your trade this leverage multiplies your gains. When you are wrong, however, same leverage exacerbates your losses. A common mistake newbie traders make is to use inadequate leverage with no regard to the size of their account balance, which could be devastating. Without concern over the downside risk, high...
leverage is not a double edged sword moron. it's a powerful tool that allows you to diversify and to determine how fast you will win or lose, according to your plan.

of course if you overtrade/overleverage (aka gambling), ok it's a "double edged sword".
  • #65
  • Aug 29, 2017 4:40pm Aug 29, 2017 4:40pm
Quoting HeyYou
{quote} leverage is not a double edged sword ..... it's a powerful tool .......
Meh. He just copy - pasted some lines from another forum to a fucking 10 year old thread here. Content, right?? >> http://www.binarytribune.com/forex-a...orex-leverage/
  • #66
  • Aug 29, 2017 10:15pm Aug 29, 2017 10:15pm
Quoting HeyYou
{quote} leverage is not a double edged sword moron. it's a powerful tool that allows you to diversify and to determine how fast you will win or lose, according to your statistical edge and to your expectations as an individual. of course if you overtrade/overleverage (aka gambling), ok it's a "double edged sword".
That is the reason why it is called Double Edged Sword, good if you use it properly as it can yield you income through both the sides and also it can cut you if you are not careful handling it.
  • #67
  • Aug 29, 2017 11:08pm Aug 29, 2017 11:08pm
Quoting Price
{quote} Meh. He just copy - pasted some lines from another forum to a fucking 10 year old thread here. Content, right?? >> http://www.binarytribune.com/forex-a...orex-leverage/
plagiarism should be a reason for ban..
  • #68
  • Aug 30, 2017 3:36am Aug 30, 2017 3:36am
Your chances of becoming successful are greatly reduced below a minimum starting capital. It becomes impossible to mitigate the effects of leverage on too small an account. Low leverage with proper capitalization allows you to realize losses that are very small which not only lets you sleep at night, but allows you to trade another day. As a new trader, you should consider limiting your leverage to a maximum of 20:1. Or to be really safe, 10:1. Trading with too high a leverage ratio is one of the most common errors made by new forex traders.
  • #69
  • Aug 30, 2017 4:15am Aug 30, 2017 4:15am
As mentioned earlier at this thread, leverage is a tool.

For a super disciplined trader bigger leverage is always better... Since newbies are not usually that disciplined, higher leverage will cause you to gamble and taking too big positions.

Good example was to think leverage as cars engine.
If you get 500bhp ferrari, it will be more likely that you get speeding ticket than with chrysler neon..
It is however not because of cars engine, but the driver.
Higher leverage allows you to trade bigger and more trades than smaller one. It doesn´t kill your account, You will.

So I would recommend to use small leverage as beginner, since before you really have edge and record, you will burn your account faster, even if it was not leverages fault.
  • #70
  • Aug 30, 2017 5:33am Aug 30, 2017 5:33am
Before using leverage it is more important to ensure how to manage risk , because leverage contains huge risk for all time. they should trade in low leverage in micro account for avoiding loss, otherwise they can fall a great trouble when market moves at random.
  • #71
  • Aug 30, 2017 5:49am Aug 30, 2017 5:49am
Honestly speaking , newcomer can earn huge profit by using high leverage only in a demo account but not a real account at all . its true. Because they don’t know how to manage risk with good trading plan . so , they should use low leverage ratio, otherwise they ll be loser.
  • #72
  • Aug 30, 2017 8:22am Aug 30, 2017 8:22am
Quoting Mysteeri
As mentioned earlier at this thread, leverage is a tool. For a super disciplined trader bigger leverage is always better... Since newbies are not usually that disciplined, higher leverage will cause you to gamble and taking too big positions. Good example was to think leverage as cars engine. If you get 500bhp ferrari, it will be more likely that you get speeding ticket than with chrysler neon.. It is however not because of cars engine, but the driver. Higher leverage allows you to trade bigger and more trades than smaller one. It doesn´t kill your...
No need to be disciplined man, just a simple equation: high leverage for small accounts (eg. $50-200).. low leverage for big accounts


who will win ?
  • #73
  • Aug 30, 2017 8:34am Aug 30, 2017 8:34am
Quoting HeyYou
{quote} No need to be disciplined man, just a simple equation: high leverage for small accounts (eg. $50-200).. low leverage for big accounts who will win ?

let me explain why I don't think discipline is needed.

well trading with money that you can afford to BURN is fun.

making a humble 30%/year on a $100k account is rewarding.

you don't really feel like you're wasting time in both cases, hence you will not make mistakes.


those in the middle are f***ed.
  • #74
  • Aug 31, 2017 12:40am Aug 31, 2017 12:40am
Quoting HeyYou
{quote} let me explain why I don't think discipline is needed. well trading with money that you can afford to BURN is fun. making a humble 30%/year on a $100k account is rewarding. you don't really feel like you're wasting time in both cases, hence you will not make mistakes. those in the middle are f***ed.

Good point of view..
It is true, that if you are trading with money that you can afford to lose, you will lose it..
On the other hand, discipline steps up anyway with revenge trading and overtrading... Both probably the most dangerous subjects to newbie trader...

I feel (done that myself) that most of traders at least at some point thinks, that "when I am up to xx amount, then I will become disciplined".. And before that I need to risk bigger just to get myself there... Like allowing yourself to overtrade, since the amount of your account is anyway not big enough... Sure this will cause you losses.
  • #75
  • Aug 31, 2017 4:12am Aug 31, 2017 4:12am
Quoting Mysteeri
{quote} Good point of view.. It is true, that if you are trading with money that you can afford to lose, you will lose it.. On the other hand, discipline steps up anyway with revenge trading and overtrading... Both probably the most dangerous subjects to newbie trader... I feel (done that myself) that most of traders at least at some point thinks, that "when I am up to xx amount, then I will become disciplined".. And before that I need to risk bigger just to get myself there... Like allowing yourself to overtrade, since the amount of your account...
well I made my 5k as a newbie (with a good dose of luck, whatever) by depositing $500 or so.

as I started looking for more "consistency" I lost it all plus another 4k.


So now I'm back to the beginning.. lol.

figuring out the best way to maximize returns by starting very small... lots of fun.
  • #76
  • Aug 31, 2017 6:08am Aug 31, 2017 6:08am
I have never found at any New Forex trader who made 5K. it’s really magical , because mostly are loser from here. By the way , what was your trading strategy and money management ?
  • #77
  • Aug 31, 2017 6:18am Aug 31, 2017 6:18am
Every successful trader has started their trading career as a Newcomer.
so I don’t think so , it’s impossible . Difficult really but possible.
  • #78
  • Aug 31, 2017 6:20am Aug 31, 2017 6:20am
Quoting BenDunk
I have never found at any New Forex trader who made 5K. it’s really magical , because mostly are loser from here. By the way , what was your trading strategy and money management ?
lol thanks much appreciated. nothing magical... I backtested everything that came to mind first.


wait for strong momentum then stop and reverse a couple times...a slight multiplier and voilà
  • #79
  • Sep 5, 2017 12:07pm Sep 5, 2017 12:07pm
Quoting twoblink
Read up on MM before you even ask leverage questions.. As a newbie, you should be trading nothing but demo..
You are right, new traders should practice demo before their live trading! For demo, they also need to work with low trading leverage, they should concentrate more on trading quality rather than quantity and trading lots size!
  • #80
  • Sep 7, 2017 5:24pm Sep 7, 2017 5:24pm
When I was a newbie, I practiced on demo for one month and kept on blowing it because it was boring. Then I decided to open a small $100 account blew it again and again and that's where I learned the real lesson. There's no pressure in trading if you don't trade for a living.
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