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

  • #101
  • Apr 23, 2018 9:15am Apr 23, 2018 9:15am
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:
Of course low leverage is good for trading. Besides that risk management is very important. How you are managing your risk that's also very crucial. For newbie I think they should not risk more than 2% of their balance. Remember you need a businessman mindset not a gambler mindset.
  • #102
  • Apr 23, 2018 9:20am Apr 23, 2018 9:20am
Quoting AgusKurniaw
{quote} Of course low leverage is good for trading. Besides that risk management is very important. How you are managing your risk that's also very crucial. For newbie I think they should not risk more than 2% of their balance. Remember you need a businessman mindset not a gambler mindset.
it would take longer for you to lose 2% of your account on lower compared to higher. Yet, more emotinal attachment is involved in lower tf compared to higher.
  • #103
  • May 3, 2018 10:43pm May 3, 2018 10:43pm
Quoting AgusKurniaw
{quote} Of course low leverage is good for trading. Besides that risk management is very important. How you are managing your risk that's also very crucial. For newbie I think they should not risk more than 2% of their balance. Remember you need a businessman mindset not a gambler mindset.
2% is ratio is completely safe for newcomers to avoid unfortunate losses and risk but there is no one newcomer who can maintain his risk ratio accurately, because of lacking real knowledge and experience.
  • #104
  • May 9, 2018 7:32am May 9, 2018 7:32am

Quoting MitchellMcC
{quote} 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.


Yes, this is a good strategy also- higher leverage with demo to test the system, then low leverage with the live account in order to trade carefully.
  • #105
  • May 9, 2018 1:56pm May 9, 2018 1:56pm
Quoting AgusKurniaw
{quote} Of course low leverage is good for trading. Besides that risk management is very important. How you are managing your risk that's also very crucial. For newbie I think they should not risk more than 2% of their balance. Remember you need a businessman mindset not a gambler mindset.
Leverage is an important too that always contains huge risk than other financial tools in Forex trading , so when using leverage make sure most powerful trading plan with real MM. otherwise you can fall a great losses.
  • #106
  • May 11, 2018 7:03am May 11, 2018 7:03am
Low leverage as always for beginner. When you're ready for high leverage, you're ready to lose lump amount of your own. So, start with low leverage along with learning process.
  • #107
  • May 11, 2018 2:34pm May 11, 2018 2:34pm
Not only beginners Mate , when it is difficult to predict the real faction of this market with certainly then it is more appropriate to use low leverage for any kinds of traders for avoiding unfortunate risks that can loser anyone within very short time.
  • #108
  • May 15, 2018 7:33am May 15, 2018 7:33am
Oh yes, you are absolutely right mate, no doubt for that. It's just, the question in this thread is entirely in beginner level. Thank you for sharing the extended version.
  • #109
  • May 17, 2018 3:35pm May 17, 2018 3:35pm
Quoting AdamCrist
Not only beginners Mate , when it is difficult to predict the real faction of this market with certainly then it is more appropriate to use low leverage for any kinds of traders for avoiding unfortunate risks that can loser anyone within very short time.
according to me , low leverage or high leverage is not a bid deal. its a deal , how can manage your risk when using leverage.
  • #110
  • Jun 18, 2018 5:20am Jun 18, 2018 5:20am
Quoting NathanAstel
{quote} according to me , low leverage or high leverage is not a bid deal. its a deal , how can manage your risk when using leverage.
What you think beginner’s level can manage their risk when using high leverage? easy answer , absolutely not. So, it is more appropriate to use low leverage for beginners.
  • #111
  • Jun 18, 2018 7:15am Jun 18, 2018 7:15am
i use 1:50 leverage in demo but in a real account i used high leverage 1:100 , it caused a risk and losses when making a trade, i had to use high leverage in demo to see the performance how it works.
  • #112
  • Jun 20, 2018 8:41pm Jun 20, 2018 8:41pm
It depends on trader that how he can manage the leverage of his trading work during the live market. It totally a management of risk and money with your strategy.
  • #113
  • Jun 21, 2018 3:30am Jun 21, 2018 3:30am
Quoting Butterscotch
It depends on trader that how he can manage the leverage of his trading work during the live market. It totally a management of risk and money with your strategy.
Totally agree with you, leverage is not bad if you know how to do risk management properly.
  • #114
  • Jun 24, 2018 3:50pm Jun 24, 2018 3:50pm
I don't understand what that fuss is all about?Why should somebody loose money with high leverage, if someone use strict money management???
e.g. 5000$ account risking 3% per trade with 50 pips SL you can open 1 trade with 0.35 position or more position all together up to 0.35 lot.
With leverage 1:200 broker will block 175$ margin on your account.Still plenty of free margin left.Can you you open another position?
No,because you will violate money management(MM) rules.
Can you lost your money,because of high leverage? No,if you stick to MM rules,but if your position will be profitable and you will lock your profit,you can let it run for higher profit and you can open another position without violating MM rules.
With with leverage 1:20 it will be 1750$ blocked in margin and possibilities of opened trades are much lover.
Another way.
I have 5000 dollars for trading.I will make deposit of 1000$ to my broker and keep 4000 on side.I can still apply same MM rules with 1:200 leverage account and keep my money at home.No worries about black swans,bad brokers etc,etc.
With lower leverage,I had to put all my trading money to broker and keep them there to hold margin requirements.
So is it high leverage bad?I don't think so.It is a bad trader's decisions,why people are loosing money.
Whether you think you can, or you think you can't,you're right. H.F.
  • #115
  • Jun 27, 2018 9:02pm Jun 27, 2018 9:02pm
Quoting Butterscotch
It depends on trader that how he can manage the leverage of his trading work during the live market. It totally a management of risk and money with your strategy.
Agree with you; traders need to use this feature according to their requirements (based on their trading plan); but without a proper plan only seeking big leverage is a problem actually.
  • #116
  • Jun 27, 2018 9:45pm Jun 27, 2018 9:45pm
true leverage is your size when opening position compared with your equity, 0.01 lot in std contract with 1000 usd equity = 1:1 leverage
  • #117
  • Jun 28, 2018 3:34am Jun 28, 2018 3:34am
Quoting jjk2
{quote} yes but with 1:1 you would need a rather big account to profit off 0.0001 price movements. why bother, with that money your better off trading futures or stocks. do not take offesne if i sound rude sry but i am expressing my own point i might be wrong here please correct me if that is so.

He made a good point, you can better use the capital elsewhere to generate another set of income stream, why do you really want to use 1:1?
1:1 is good only when you know you have no discipline to manage your own position.

Imagine you use 50:1 while you are managing your risk brilliantly, for a 1,000,000 Position, you only used $20,000 Margin, the remaining 980,000 if you can invest in some alternative investment, you can earn an additional 10% - 20% Per Annum with Risk that is much lower than Margin Vehicles.

Coming to how to use Leverage, it will still depend on the trader's character.
Sad to say most Novice like to use High Leverage and expecting to use $100 to make a Million!
  • #118
  • Jun 28, 2018 6:59pm Jun 28, 2018 6:59pm
In 5 years of learning, high leverage has never ever been something that helped me make money.
  • #119
  • Jun 28, 2018 8:18pm Jun 28, 2018 8:18pm
Quoting Ivanyo
In 5 years of learning, high leverage has never ever been something that helped me make money.
Same experience here, I also started with a high trading leverage but right now, I am working on 1:100 leverage! High trading leverage is always costly.
  • #120
  • Jul 31, 2018 4:47am Jul 31, 2018 4:47am
For a beginner it will always be the wise choice to trade with a low leverage. It is much easier to handle the negative consequences of low rather than high leverage. However with time as you gain more experience and skills you can try high leverage also. But make sure to use proper risk management strategies at all times.
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