High leverage vs Low leverage 68 replies
High Leverage vs Low Leverage 21 replies
High Leverage vs Low Leverage 20 replies
Is high leverage really bad for you? 10 replies
DislikedDid I say that Hidethereal? :
By the way, funding/depositing money (to your FX account) by credit card costs nothing, zero, there are no fees involved.Ignored
DislikedI rather be the one with $10,000 cause then I could open new ($100) positions while the other positions are still in play. While the other guy can only do one position at a time. Since more opportunities translates to better returns (provided you have the edge).Ignored
DislikedThen the trader who keeps depositing will end up wasting time and miss good trades along the way..Ignored
DislikedWell we don't know for sure if "more opportunities translates to better returns" in the long run Hilmy83. What is true however is that it will certainly decrease the maximum drawdown and give you a much smoother equity curve.
But MORE profits I am not sure about that.
True, but he will also avoid a lot of losing trades too, while waiting for his deposit to clear so in the long run things will even out.Ignored
DislikedTrue, but he will also avoid a lot of losing trades too, while waiting for his deposit to clear so in the long run things will even out.Ignored
Dislikedyou're assuming his system has only a 50% success rate and that his profit trades and losing trades are the same size.Ignored
DislikedMake your point about how someone can benefit from your arguement.Ignored
Dislikedokay.....not that I buy your whole premise, but so what if it's a myth? That's his point. Are you going to tell us next that if we have 2 accounts, one with $100 and one with $10,000 and if we use the same system on both, that we'll make more money by maxing out our account on each trade? If not, then there is no point.Ignored
DislikedNo, all I said was that those 2 accounts would end up making the same amount of money, even though in the second account it would appear we are using "too much leverage" and in the first account we are using "safe" leverage.
This "safe" leverage is of course only an illusion, both accounts are making the same exact profits and are experiencing the same exact drawdown.Ignored
Dislikedi dont see how this is possibleIgnored
DislikedThis "safe" leverage is of course only an illusion, both accounts are making the same exact profits and are experiencing the same exact drawdown.
DislikedOk, both are making the same drawdown and profits assuming the wire transfer costs are negligible and no good/bad trade missed while waiting for wire transfer.
Why bother discussing this in the first place is what I don't understand.Ignored
DislikedWell if both accounts are making the same profits even though one account is using a very "conservative" leverage and the other account is using a "scary" 400:1 leverage then we must conclude that this "high leverage is bad" idea is simply a myth.
This is what I am trying to explain from the start.
Ok folks, that's it for me as far as this thread is concerned, I cannot add anymore comments. Thank you all for your input.Ignored