Menu
Sister Sites

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Print Thread

Similar Threads

High leverage vs Low leverage 68 replies

High Leverage vs Low Leverage 21 replies

High Leverage vs Low Leverage 20 replies

Is this beginner's luck or I actually have a good system? 39 replies

Good Beginner Charting Packages 3 replies

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

  • Post #81
  • Quote
  • Edited 5:16am Sep 8, 2017 1:34am | Edited 5:16am
Quoting Icycool
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.

Trading is boring. Until you get rid of the trading for the buzz feeling it is very difficult to make money
I live entirely from the growth of my personal trading account
Quoting Icycool
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.
Really nice decision , demo is useful but not interest to continue , that’s why it is more appropriate to take micro account instead of demo.
According to our trading understanding we the traders choose our trading leverage. Beginner traders should not use high leverage ratio till acquiring exact trading plan with great money management approach. But practically they always use high leverage for earning profit rapidly and ultimately become loser due to non-sense planning. So before trading with leverage it is more appropriate to make sure how to manage money.
I seem, new traders need to focus on their learning process rather than brokers trading facility & features! Yes, leverage is very important trading facility but high leverage brings high risk! This is why, when I was a new face for live trading I started with only 1:100, even I practiced in my demo with the same percentage.
Quoting DarrenLehma
I seem, new traders need to focus on their learning process rather than brokers trading facility & features! Yes, leverage is very important trading facility but high leverage brings high risk! This is why, when I was a new face for live trading I started with only 1:100, even I practiced in my demo with the same percentage.
Brokers trading facilities not a big deal at all even though so many traders emphasis on.
Broker just provides a trading platform , nothing without it.
I define financial leverage as the process of borrowing capital to make an investment, with the expectation that the profits made from the investment will be greater than the interest on the debt. But this is not happening all the time. Because many of us forex trader can’t use leverage wisely. When it comes to use it we become greedy to get high profits from our trades and that blind us completely, we do not think the consequences.
Hi
Being a Beginner you can first start with the demo accounts of various Brokers and experience working with low and high leverage both once you get an idea of trading conditions you can opt for the live account with the trader you found had better working conditions. You can test the live working count with low deposit and low leverage and you can increase the leverage and deposits accordingly. In case you trade with high leverage it involves high risks as the margin increases so with a very small market fluctuation could lead to huge losses.
Quoting bradblash123
Hi Being a Beginner you can first start with the demo accounts of various Brokers and experience working with low and high leverage both once you get an idea of trading conditions you can opt for the live account with the trader you found had better working conditions. You can test the live working count with low deposit and low leverage and you can increase the leverage and deposits accordingly. In case you trade with high leverage it involves high risks as the margin increases so with a very small market fluctuation could lead to huge losses.
It’s nice suggestion you have. Thank you a lot. Supportive for beginners.
Quoting JamesFaulkn
{quote} Brokers trading facilities not a big deal at all even though so many traders emphasis on. Broker just provides a trading platform , nothing without it.
But there is no way to ignore the brokers support for ensuing a successful trading life, because they can affects the result of our trading at any times.
1:100 is a good choice for the newbie! Even, I started my live trading with 1:100 till now I am working with the same trading leverage! Yes, high trading leverage costly for the newbie!
Quoting GeorgeBaile
1:100 is a good choice for the newbie! Even, I started my live trading with 1:100 till now I am working with the same trading leverage! Yes, high trading leverage costly for the newbie!
1:100 is not a lager ratio of leverage but it can cause a great trouble for the newcomers when especially market moves at random. 1:50 that’s why is more appropriate to avoid risk with certainly. My trading career, as a newcomer I have lost vast of money due to using high leverage because there was no good trading plan with money management. So, before earning profit by using leverage it is more appropriate to ensure most powerful money managing skill.
Quoting GeorgeBaile
1:100 is a good choice for the newbie! Even, I started my live trading with 1:100 till now I am working with the same trading leverage! Yes, high trading leverage costly for the newbie!
I think that the new traders being unaware of the market conditions should keep the leverage low in the start because high leverage usually claims higher damages as well.
Quoting bradblash123
Hi Being a Beginner you can first start with the demo accounts of various Brokers and experience working with low and high leverage both once you get an idea of trading conditions you can opt for the live account with the trader you found had better working conditions. You can test the live working count with low deposit and low leverage and you can increase the leverage and deposits accordingly. In case you trade with high leverage it involves high risks as the margin increases so with a very small market fluctuation could lead to huge losses.
Yes, that’s the real disadvantage to trade with a high trading leverage! I think, traders need to select their leverage feature according to their strategies’ requirement! It can’t be your personal choice!
Personally I calculate this based on account size. Im a fan of trading 100k risking 1% per trade, so a 10k account for example I would need atleast 1:10 leverage in order to be able to make 1 standard trade. Risking only 10% of my portfolio at a time, I would prefer 1:100 leverage on said 10k account for my trading style

cheers
Quoting analysisfx
Personally I calculate this based on account size. Im a fan of trading 100k risking 1% per trade, so a 10k account for example I would need atleast 1:10 leverage in order to be able to make 1 standard trade. Risking only 10% of my portfolio at a time, I would prefer 1:100 leverage on said 10k account for my trading style cheers

The lower the leverage the more pips it will take for you to margin call if you use no stoploss. However, low leverage kind of feeds into the trading bias people have being as they have a lot of pips to work with as cushion, yet that allows people to hold on for huge amount of time even against their original plan. so all in all, rookies should focus on a system first before thinking about leverage.
The Earth is flat!
hi,
could someone answer a question for me please.
I work in a different sector of the market and just want to make sure i understand how leverage is used here.

When people talk of leverage of say 1:100 does that mean a person with say a 5k account will trade a position size of 500k?

Actually, another question while i am here please..

When people talk about winning percentage do they mean percentage of winning trades or percentage of winning days? as they are quite different.

thanks in advance
Quoting analysisfx
Im a fan of trading 100k risking 1% per trade
Very cool plan; the main advantage of using low risk reward ratio is, you can participate with the maximum number of trades!
On the beginning you should start with 1:50 leverage. Use Stop loss and Take profit to prevent any surprises. After 2-3 months try with 1:200
Almost no one understand how to use leverage and they take it as something "negative" that should be avoided at all cost (lol)

even worse they keep repeating the same thing over and over again (oh the internet..)

the REAL problem its the aproach of traders where they have a crap "strategy" with a horrible win rate and then, AND ONLY THEN IF you couple that with a high leverage you get bad results !!

then of course they use a tiny % of the capital per trade in order to "minimize" the negative results they get at random when they dont know the problem its NOT the leverage but in their aproach in how to trade
Quoting DwainUK
On the beginning you should start with 1:50 leverage. Use Stop loss and Take profit to prevent any surprises. After 2-3 months try with 1:200
the traders who pare especially beginners should use high leverage in demo to see the performance how it works , this approach cam make them carefully when trading live to avoid risk.
0 traders viewing now