Leverage is Poison

It does not make any difference beetwen 10 or 500 because the pip value is always the same

it does make all difference in the world dear,
if you are trading with 1:1 leverage 100 pips will be 1% loss
10:1 leverage is 10%
100:1 leverage if used 100 pips means no matter how much you had 100k or 100M it will be gone.
you count pips that is why you are where you are,
we count %
lets say i made 1% today that is enough for me.
if it is 30 pips or 50pips i dont care.

if you understood that you will be having your own investment company like my mentor because to run a business and this is business not a casino.
no offense but broker gives you that much leverage because they know you will get emotional, you will get exited, you will make mistakes and leverage is poison.

everyone thinks differently and frankly that is what big players want you to be emotional no rational.
you think you are making pips.
but look at your account after 1 year and i mean really have a hard look.
maybe just maybe you will understand.
but again human brain
when you loose you open another mt5 or mt5 or trading view account and start over. 99.99% does that.
they dont want to be reminded fo their loss that is human nature.
but you can look at your bank or card and keep track how much you deposited adn what you got back and see if you made good profit.
and i dont want to know.
its your life your money,
just saying after few years, those who dont let emotionas get into their Financial life,
this bloody market is taking billions every single day,
some time you win sometimes you loose, that is part of trading.
what counts is after 1 year how much you made and try to count in %
and i used to do that too a lot pips pips pips.
but what i learned was its all about %
if you can make 10% consistent profit for 5 years
with compounding it will become bigeven small money becomes big but 5 years is long time to be disciplined.
its was never about how many pips you make or how much profit.
its all about what you are willing to loose how muhc risk you take in every trade.
becaus few bad trades and you are down 10- 20% then traders get emotional,
it is called revenge trading they trade bigger lot size of in your case 30 pips ut double profit.
that is gambling,
when i loose i trade with half the leverage untill iam back on track and start with usual leverage.
i use to do the opposite, and i lost a lot hell 3 years of working and saving gone and most important thing was TIME which i still think about it i wasted my time.

anyways have a hard look at your finances not pips,
and you will see trading maybe even money your perception of pips profit and money will change.
this is only for those who have the patience.
it maybe not for you if you are still counting pips after 10 years,
then maybe no offense you deserve to b where you are,
because you never learned that in any business % is what matters Nvidia is up 3% not 300 pips
no they count pips
investors count % how much they made and what risk they took.
.
anyways Good luck.
i am not here to argue so please dont reply.
i agree with you 100%
because in todays world if someone says to me 2+2=10 i must say well done and move on.
but i was told to post here clear few misconceptions traders have thats all.
.

Lets check
lets take eurusd for example
with 500 leverage for one lot 1 pip = 10 $
With 30 leverage for one lot 1 pip = 10 $
With 10 leverage for one lot 1 pip = 10 $
or what ever your broker is offering

oh dear GOD you don't even know the basic of what leverage means.

it is not about lots its about you account SIZE?
what the hell is wrong with you guys.

its not about 1 lot is 10$ fine but if you account is 1k then 100pips mov and your account is gone
but with 1k account lets say 0.1 lot then atleast you have 10 times more pips then standard lot.
that is how you calculate risk.
because no matter what happens market will go against you,
and you will loose some trades,
hell even best traders i know have 70% winning averag rate.
so still 3 out of 10 trades are closing in loss.
i cannot waste my time with someone who didnt even understaood the basic concept of leverage.
what the hell is leverage and how to use it.
but i am free so lest do it another 2 min.
lets say 1k account you trade with standard lot and your 30pip stop loss hit
now you lost 30% of your account.
and that 30% you will try to recover that loss asap,
that what traders do.
most of them are technical trader,
so in chart you will find another trade doesnt matter if it is eurusd or gold or what ever.
you will find a trade sooner then later and then maybe you will win 30% back or maybe loose another 30% and now total is 60%.

trust me i know because i have been there long time ago.
i have done it.
i was lucky to found someone who showed me how leverage is calculated
ask chatgpt maybe you will find good answer explained how leverage works.
it was never about what kind of leverage your broker provides,
it is all about how you use it.
you dont even know what the hell 0.1 lot is how much money is in it.
it is 10K trade and you have 1K so you are trading with 10 times more money you have that is why 90% loose
Money management is all about knowing how much % i am putting at risk.
not money it was never about money.,
hell in stocks millions are invested they dont count they made 500$ or 2K a day.
they calculate % if for example you can make 10% a month with 5% Draw down.
which is very very important.
why the hell you think investors dont care about profit. only risk.
if your max draw down is less then 5% and you are making 5% a month
trust me you will get million$ investor too.
one thing i learned in my life is that no one ever went to millions or billions wiht their own money.
its always investors money.
i have lets say 100k
but i have 10 investors with 100K and now i am making same trades same everything but 3 times more money then my own account.
that is how big money si made,
you are still working for money and you think you are making money.
12 hours infront of screen taking huge risk stress and still where are you??
dont answer me look back 5 years ago or 10 years ago when yo ustarted
what you had and now what you have now?
and most traders live in deniel that is great for us actually to be honest,
big players want you to loose money so they can take it.
anyways,
good luck

Just remember Wealth is not about having money, its about having time.

i what have made from this market i always withdraw and invest else where,
in stocks real estate, start a business or join a business what ever.
that is money invested.
because the day you start investing is the day you buy for your future then you dont have to work

so lets analysze.
10 years in forex you are working for money,
i sometimes trade and its always swing trade low leverage.
for eg i have 415k account i will trade with 5 lots that is 500K same money as i have so 500 pips will be 5% loss.
simple. nad i leave it sooner or later it always hit the target or close.
hell i bought gold at 3024 and left it for 65 days to get to 3700
i can show you its real money lie account FUTURES account not spot.
you only know one market forex where leverage is 500:1 you can gamble with your money.
come to futures and with some brokers you dont even get 10:1 leverage
then you will know how hard it is to make money.
imagine if you had 1k and you are only allowed to trade with 0.01 lot because 0.01 lot is 1,000$ trade.
no leverage.
then i will ask you how much you can make from this market.
bloody hell
i am tired if greedy people dont even know the abc of this market and think they can make money and become full time trader and handle millions.
i just wonder sometimes.
what if you guys can have a million$ account you will start trading with 10M trade or will stay with 1M

that is the reason brokers give you high leverage so you can use it and sooner or later you will loose that is fact 90% does.
and you my dear is no different,
i can say for sure is because you dont even know what leverage is .
my daughter is 11 she knows what leverage is every trade she knows how much money she is putting on risk and can she handle 3-4 loosing trades in raw and it will not effect the account.
then later she thinks about the profit.
and you my dear 11 years trading dont even know what leverage is.
i wish you had learned or atleast read about leverage
those who understand leverage and how to use it and most of the time they avoid it actually unless they are very sure they still use low leverage i know soe traders use 3"1 leverage and still think its high leverage trade they could loose 3% in a single trade.
and forthem its a lot.
becaues millionaire think in terms of %
if they can make 5% a month 60% a year they doing 6 time better then stocks and 2 times better then top 10 hedge funds.
that is how welath is biild brick by brick.
not over night that mindset of your's is why you are here arer 11 years and still have nothing to show for.

no offense its you life dear brun your money if you want it will not effect my life or my money.
just saying leverage is not calculated like you mentioned.

it is calcualted with your money
oh dear i already wasted too much time
i will not repeat this mistake again.
because we market neeed fools and gamblers to provide liquidity to the market so real traders can make money.
thank you for providing liguidity honestly you and millions others like you.
WIsh you all the best.

Hello Guys as i said before another 100$ move was not out of question.
and it happened even came close to 4000
we as discussed entered at 4040 was not bad 4100 i was out.
i hope today will clear things up for the gold.
again another drop to 4000 will not be a bad idea to buy.
but at this level 4100 i am not confortable to buy it dould drop another 50-60$ or even again 100$ US session move was impressive.
but again not enough confidence to hold it for long.

but thats just me.
be careful gold might make a dip it is atleast came out of oversold so the next move today or tomorrow will determine where it might go.
but with FED and US CHINA specially all happening at same time.
29 oct then 1st NOV.
its tricky to be honest i just put in small buy just wanted to see how far it can retrace i wish i didnt waited for hourly close could have got 4020
but that is fine this is market it happens market will go against you.
its all about risk management
if you can make manage risk then even 100$ drop is just 1% or 2%
but or 90% traders it is mostly 10-20% because they use leverage
it is a great tool to be honest but for me mostly in major pairs eurusd gbpusd they dont move 300 pips in a day to make me uncomfortable.
but in gold even half lot lets say i have 100k account trust me i am not confortable with 1lot i mostly use 0.3 or sometimes when i am more confident i use 0.5 half standrd lot.
because 100$ means 5k that is 5% losss.
but with 0.3 100$ move can give me 3% lot which i am confortable usually we hedge but just in case or rapid move.
so that is why i always say Leverage is poison.
because trust me it is.
hell in futures trading specially with US broker we do not have levrerage.
that means if i have 100k account i cannot use 1 lot it will use all the margin so i have to use atleast 0.3 so i can give gold room to make its move
because no one is perfect
what matters most is the direction that is all.
if you are on the right direction for the day or week.
you will end up making proift if you are using low leverage.
i promise you this is hard not ot use leverage but according to world gold council 12.5B $ lost in retail trading this week and it is a lot of money considering 10k accounts or 5k acounts those who have real live 100k account they know how to manage risk and leverage.
specially with 100k or 500k you have done enough mistakes in your career as trader knowing better when to avoid the market.
specially now a days when we have gold making wild moves.
but again the allure of fast moves gives the retail traders the aderaline rush and they cannot hold their emotions and just stay away for few days.
no i see everyone is trading every day.
please understand this : it is not a JOB that you have to trade every day.
just by avoiding few days of chaos and see other loosing most traders if you guys have real connection and live accounts
you will thank me someday if you remembered.
i dont need your thank i just have done thousands of these mistakes in my past decades ago i dont want others to suffer the same thing i did.
trust me it was painfull still thinking about those emotional greedy trades gives me headache.
most people when loose they try to forgetand it is easy to forget becaue human mind is built that way to avoid pain but i wrote down my mistakes i ahve screeen hosts of the accounts from 2008 -2012 134k lots in 3 and half years.
took me long time to recover.
so if you really are serious about building something from trading 12 hours a day,
and high stress hig pressure, the fear so many things i have experienced with using leverage.
again
take it from someone who went broke in trading with leverage in forex,
and then stopped learned the right way and then another 5 years to make it all back then after that it was just routine like riding a bike.
but took me 8 years to get there.
so please be careful.
this is you hard earned money you saved for months to invest in forex in hope that you will make good profit.
and i always say it is great tool forex options futures these are tools to make money.
and yes many have made it millions
but only those who understood how to manage risk.
now you have FTMO take 100$ 10k account and try to manage it for 6 months.
if you can then i swear i will sell my house and invest with out thinking because i know i can manage risk.
but 90% even after passing they cant keep up and lose the accounts.
and remember its demo so that 500$ you pay made them millions 350M
but there are few i know specially australian traders who are using funded account from FTMO australia.
and i have seen the withdrawal 8k not bad,
what they dont understand the is the algorithm pick traders who is managing risk low leverage orno leverage
consistent profits and then they copy your trades to big accounts and make 10 times more then you are gettin paid.
you have to understand the system the business model of the prop firms do your research and hopefully you will find out.
i never did because our conditions were more strict.
2 trades a day max 1;1 leverage max
so i can split 50k account trade to 0.25 lot 2 trades
and opwn draw down was 3% and then when reached 2% we get warning to close the positions because after 3% positions gets automatically clsoe ti was FX trade from Oanda.
so imagine you have 2 trades a day gold is not an option only you have 4 major pairs thats all.
not i hear they offer more pairs but gold is not allowed.
still the strict rules made me disciplined trader.
and i am still using same strategy for stop loss for targets for leverage
and i left in 2015 and after 10 years i have my own company with over half a million$ of my own,
forget the investors.
and one more thing i want ot make clear i am not looking for investors because minimum according to NFA the Certified CTA (commodity trading advisor) can manage the minimum is 100k
and trust me those who have 100k live account they will never give ti some one else because they think they can make more.
so my investors are clueless about trading arabs dont even know what i trade
all they care about is profit if i make 5% that is fine 60% a year is 6 times better then stocks.
and 10 times better then banks.
that is how they see the investments.
so please dont bother with me or my traders with anything like that.

they are here just because i started from here FF was where i read 1,000 of posts every day on every pair trying to understand how theywork why every paid is unique then fundamentals took me 3 years to understand how in long term fundamentals are the only way to make money techincals are just a tool to get in and out of trades at good levels thats all it is.

no offense ot anyone please.
i reespect everyone's opinion.
i was one of you more agressive more greedy then most you can even imagine in 2 trades i lost 5k in a day.
that much greed was there imagine how much leverage i have used to blow 5k in a day??

but again it took a long long time to change my mindset to survivor to investor.
many here are trying to survive in this market,
this is not a market for surviors, it is for those who can learn and grow and thrive
then you can build a better future. other wise even after a dacade you will realize mostly you may have not lost money but you have maybe made a few bucks but lost 10 years of life.
thime is precious. my dear fellow traders.
wise men invest in time not money.
they learn i am still trying to get more knowledge and more expereince this bloody market is evolding every week
specially after the trump one day it relief next day one tweet and your whole week profit will og away.

so be very carful.
before opeiing any trade just think of how much time it took you to save the money you have in your account.
that will calm your nerves i use to do that.
and still do because we are human without emotions we will be robots not humans
the chalenge is not tradew ith out emotions it is imposible according many 3 atleast nobel prize winner phycologysts
but channel those urges,
watching the market whole day and not trade just one trade and after that keep watching every hour or 2
that is how i learned to be patient now gold moved 200$ i didnt cared i took my profit that was it i gave it another day and watched another 150$ down move every few hours i was cehcking. but not trading
if you can learn how to to that. i can promise you one thing in future you will never regret learning this simple method.

that will be all for this week.
i hope someone hopefully my 30 minsutes of writing will nto goto waste maybe after a year or 2 traders will read and maybe just maybe will learn something will apply the principles and hopefully will start on the track.
this illusion they sold you about making 30-50% month many make it but for how long few months and then it is all gone.
have you ever make 20-30% a month consistently for a year or 2 or 3??
dont answer just look at your finances your broker finanaces how much you made and withdraw.
or look at all the accounts you made lost made new one that is the trend now a days i get calls from nay traders and i always reply.
few months back i had an account i lost and and that account i deleted and started fresh......
why not keep it to remind you of mistakes you have done so you will not repeat it.

hell i can write a book.
but again i dont want ot waste you precious time guys you have trades to do right?
because trader means he has to trade every day atleast 1 trade?
that is the mindset you built by wathing others make 10 trades a day.

an it will be hard to change that
it will be difficult
hard
you will always struggle to make a trade when market moves.
and most of the time you will en up with a trade
but give it time it is a process mind cannot handle big changes
so make small changes lower your leverage size every week,
make few lesss trades every week.
slowly your mind will adopt.
i have read mosre then 105 books on phycology just to learn how my mind works so i can control it.

there is a wise saying ( either you control your mind or it will control you)

ask your self whihc side you are on and be rational not emotional.
ask someone else even a therapist in few minutes can tell you which side you re on.
are you controling your mind or it is controling you?

that will be all for this week.
i may have bored traders because all they are lookin is for trades to follow or if they are in a trade they are looking for same people who are doing same thing so they can get confidence that i am not alone others are buying or selling with me also.
so we will be fine.
soo many things i have elarned from this market 20 hours a day for a decade was not easy i was introvert by nature but tradingtook me to whole another level.

so take it fro msomeone who has it.
mone yis not everything.
yes it is more important then anything now a days even relationships cannot survie without money.
but take a time off.
to enjoy your life a week no trading just travel somewhere or give time to your family.
or just take car and go for a wild ride.
remember you cannot take this bloody money to your grave.
so if you are working for money make damm sure when you get old you dont have to worry about money ever.
if you cannot do that then this trading journey you are on trsut me when you are 50 or 60 years old
then you will realize it was all for nothing.
because then you will be alone kids gone wife maybe there if you re lucky.
so at the end we all die alone.

so if i were you i will make sure i am moving towards a better future.
i only care about future honestly because that is where i will live the rest of my days when i am old.
and i want ot make sure i will never ever have to trade ever again.
that is why i always take my profits out and invest in many things
stocks in just one option.
see the thing about money is it gives you options.
more money you have more options you got to invest in multiple businesses and then the factory is maing products and you are gettin your % of profits.
that is my goal.
again for me trading is a tool it gives hell of profit much better then stocks and even businesses.
so i am doing it for antoher 10 eyars after that i am done
and i wil have enough passive income to live the rest of my life without worryinh about money.
yes 15 years passed so in total 25 years i worked but next 25 will be living life on my terms.
and my kids future will be set.
all they need to learn is how to manage money.
because money end up with those who can manage it. and that is fact.

godo luck guys.
sorry if i wasted your time.
but i hope some wise traders who have been here for decades trading will get my point.

honestly when i read 12B lost in just few hours in retail trading it made me sad that many many have lost their hard earned money whole month working for money an d then see it all go away in a day or 2 its painful i know because i have been there decade ago but it still feels like yesterday.
becaue i always read my what i call wisdom book my mistakes
my journel where i wrote which month i took loss and i only kep track of loss.
to remind my self untill today that if markt is changing i have to change with it,
now its more polictic then fundaentals so go wit hthat.
after few months itwill be back to normal and then again fundamentals will com into play and i will use that tool to make money.


Good luck to you all.

Regards,

Muhammd.

Thanks Man..I really wait for your posts every week.

Hello Guys,
gold is at 4070 not bad nice drop.
but be very careful FED rate is on wednesday.
so if i were you i will not sell i will wait for the low to buy.
even trump says we will make a deal with china that is just talks untill the deal is done nothing is certain.
so for me at least selling is not an option.
buying maybe 4030-4020 i will buy.
not it is in range and money better to wait for london for the direction adn london can be tricky it could take gold to 4110 or 4030
so again i will be careful with GOLD.

Good luck

have a great trading day.

Regards,
Arham

"Money transfer from Impatiece to Patience Person"

Pip. Sniper . , Im with you. All of your saying was true. My first 2 year was hard, Until my 3rd yr until now in trading . Im a trader 5yrs . Before, I was blowing accounts to Making profits consistently(Small and consistent) . . I was not chasing profits now. I just trade with very low margin not more than 1%, . And yes, I was making money on it consistently .

No need to calling names or go out on a witch hunt.
Thats why we use money and risk management

i feel the same too, after a heavy loss early this year, took a break for 8 months, trying to strategize and build back confidence...... so i feel you too and we will definitely succeed

Well the leverage does not affect the pip value. You can basically open more trades with lower margin!

Correct, leverage doesn’t change pip value at all. It just reduces the margin required so you can open more positions. The risk comes from oversizing.

Then what is your stand?

For those who can't use it, I agree. But if you properly handle it, I don't think it's poison.

Totally agree on leverage being dangerous. I've been running algorithmic strategies for about 2 years now, and the hardest part isn't the technical setup — it's staying disciplined when the system is in drawdown.

Last month I had a 7-trade losing streak (happens to everyone), and my first instinct was to increase lot sizes to "recover faster." Big mistake in backtesting showed me that would've turned a manageable 3% drawdown into a 12% account hit.

The math is unforgiving: if you're down 10%, you need an 11% gain just to break even. Down 20%? You need 25% gain. This is why I stick to my 2% risk per trade rule religiously, even when it feels painfully slow during losses.

Anyone else struggle with the psychological side of systematic trading? The strategy works, but managing your own emotions while it runs is the real challenge.

Whats up, i saw your message from yesterday and you said if you need a mentor because you are not doing that good dm me . I don't know how to dm on here so i do it this way, i doubted for a long time whether I really needed a mentor or not but am sure now that i need one. I would appreciate if its possible