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Thoughts on 50:1 Leverage

  • #281
  • Mar 24, 2011 2:42pm Mar 24, 2011 2:42pm
Quoting gspajon
I was never the 50:1 that bothered most people (of course I have decided I will speak for "most people")....

fair enough, but the thread was "thoughts on 50:1 leverage" not "thoughts on CFTC".

Let's be honest, majority of retail traders are very stupid when it comes to trading Spot FX. If that wasn't the case, would things be different? I don't know...

Also, although some crap came out of it, some good has come out of the regulations as well. Retail Bucketshops are under a tighter leash and I'm not hearing about the old school retail broker manipulation as much anymore (not to be confused with market manipulation). Feeds have gotten way better, etc...
  • #282
  • Mar 25, 2011 9:53am Mar 25, 2011 9:53am
earlier I was doing pretty bad in Forex
but I got my thoughts together and I did the following

I started all over again and started trading a Live micro account
I started trading 1K and 2K lots and then when I was successfull
I started increasing my lot size and then I went up to 10K and 20K
and then went to 50K and 70 K and now I am trading 100K lot sizes

What has the above to do with 50:1 leverage ?

Well....If your method is not correct it really does not matter if the leverage is 50:1 or 100:1 or 200:1

I am trading a 10,000 dollar account..now....I initially started with 1000 dollars and No my profit is not 9000 but what I mean to say is I transferred 1000 from my bank to the broker ...I could have transferred more but said...hey is your method correct ?

When I started doing properly that is when I started funding more and more and more.

Yes, I have had rough days and rough weeks but I have been trading my account since Jan 2011 and now I am up 50 percent.

It really does not matter what is the leverage ....It only matters what is your method....

If the leverage is high you can lose big and make big...that's all.

Go slow and steady and concentrate on your method and your rules and start small ....with a 1K or 2K lot size

Initially I was winning or losing 3 -4 dollars a day...That is not even mimimum wages in USA and I was putting in 4 hours a day....

Method...Method....Method

This is the key .....
  • #283
  • Mar 25, 2011 10:33am Mar 25, 2011 10:33am
Quoting TaoTrader
I have been a successful trader off an on for several years, regardless to the leverage I use. Of course, 500:1 instead of 50:1 allows me to set aside a smaller amount of margin, and since I do not use stop losses, it allows me to keep my negative trades open longer if I know the market will be coming back around. However, I think the 50:1 leverage is nonsense and just another way for the U.S. government to control the flow of money into its own pockets.
Oy Vey.....the "they took our freeDumb (sic)" argument. Nothing new to see hear. Just another flag wavin "patriot". Meanwhile you are probably buying cheap drugs from Canada......all in the name of "freeDumb".
  • #284
  • Mar 25, 2011 10:35am Mar 25, 2011 10:35am
Quoting Monroe
This was brought back out of nowhere... But hey, I'll say it again...

Standard institutional accounts never allowed 500:1 leverage. I hope you all understand that's crazy. You can go read up on why they did this at retail shops.

A real institutional account is 50:1 or less and has always been that way as far as I know. If you are a successful trader for over a couple of years, you would most likely have an institutional account. You would be getting tighter spreads along with true interbank pricing and more reliability as far as a counterparty....
Wow, a reasonable rational response. What are you doing here? This is a place for conspiracy theories and fantasy economics.
  • #285
  • Mar 25, 2011 2:46pm Mar 25, 2011 2:46pm
I agree 100 %


Quoting hubbahubba
Wow, What are you doing here? This is a place for conspiracy theories and fantasy economics.
  • #286
  • Mar 25, 2011 5:44pm Mar 25, 2011 5:44pm
Quoting hubbahubba
Wow, a reasonable rational response. What are you doing here? This is a place for conspiracy theories and fantasy economics.
I always like it when an active member in a forum tells others "what are you doing here? this place sucks!"
  • #287
  • Mar 25, 2011 7:23pm Mar 25, 2011 7:23pm
Quoting Monroe
You tell me how these Institutions, some or most who diversify in plenty of instruments, have always been doing this with 50:1 leverage or less. If your strategy needs to use a crazy amount of leverage, I would seriously question your strategy, or at least, your entry points need some serious work.

So how is 50:1 nonsense? (I don't really care for an answer)
By nature of its size and clients, an institution can't operate at the same level of aggression as a small, independent trader. An institution may not require more than 50:1, but a skilled trader on fast timeframes certainly can.
  • #288
  • Mar 25, 2011 7:41pm Mar 25, 2011 7:41pm
Quoting Mr J
By nature of its size and clients, an institution can't operate at the same level of aggression as a small, independent trader. An institution may not require more than 50:1, but a skilled trader on fast timeframes certainly can.
By nature of a successful trader, he would eventually have a large sized account and it would be in his best interest to use an institutional platform with a prime broker... especially if he was "aggressive" on fast timeframes. I would say it's pretty much required. But hey if you guys wanna try and get rich quick with 500:1 on MT4 go for it.
  • #289
  • Mar 25, 2011 9:34pm Mar 25, 2011 9:34pm
Look, ask yourself this - if you can't make money with 50:1 ( which btw is higher than most FUTURES CONTRACTS ) what makes you think you can make money with 100:1 or higher?

I'm GLAD the CFTC restricted U.S accounts to 50:1. Like many, I was initially opposed, but when I really thought about it, 50:1 was more than enough. If you want to go "offshore"be my guest - good luck with ever getting your money back. Don't believe me? Go over to forexpeacearmy and see the complaints against offf-shore brokers.

50:1 is fine .
  • #290
  • Mar 25, 2011 9:50pm Mar 25, 2011 9:50pm
OK, some disclosure is requied here


I tried off-shore brokers -the ones that claimed to be STP. As soon as the new rules were implemented, guess what? They closed my account!

In retrospect, i'm HAPPY THEY DID!

I had an account with JadeFX - they're now being INVESTIGATED!!!
Thank god, I got my money back in time.


I went back to a good honest AMERICAN broker - OANDA.

( no, I don't work for them , have no benefit advertising for them, or anything like that - they're just HONESTLY following the LAW).

Do you see what I'm saying? STICK with honest American brokers who are members of the CFTC and the NFA.
  • #291
  • Mar 25, 2011 9:58pm Mar 25, 2011 9:58pm
50:1 teaches better management in my opinion - less casino like attitude is learned. You actually have to learn better or refine your skills. If you do not know what I mean, try a 100:1 vs 50:1 side by side using same lots. I originally did not like it, but now praise it; the government actually did something helpful to most traders here (most I said).

To others, it is a slow death 50:1 vs fast death of 100:1 or more...

There are others who can gamble very well too...

If you are US based and want larger leverage, just go to a FX based bank - Dukascopy, DB, etc - still possible from my last conversation with their people you are able to use 100:1.
  • #292
  • Mar 25, 2011 10:55pm Mar 25, 2011 10:55pm
Mabuhay!

I totally agree. To anyone - look at your trading system. If you're unprofitable at 50:1, you won't be profitable at 100:1 . THINK ABOUT YOUR SYSTEM! WHAT ARE YOU REALLY TRYING TO ACHIEVE??


The FOREX market is 1.5 TRILLION dollars per day. How much do you REALLy need? ASK yourself
  • #293
  • Mar 25, 2011 11:31pm Mar 25, 2011 11:31pm
Quoting mcmillan
If you're unprofitable at 50:1, you won't be profitable at 100:1
If you're unprofitable (i.e. if you can't produce a real quantifiable edge), then no "low leverage" will help you, only make you go broke much slower.

Quoting pinoyboy
If you are US based and want larger leverage, just go to a FX based bank - Dukascopy, DB, etc - still possible from my last conversation with their people you are able to use 100:1.
That is what I do. 100:1 is the ideal leverage.

To whoever said the only safe brökers are American brökers: Your world is small.
  • #294
  • Mar 25, 2011 11:46pm Mar 25, 2011 11:46pm
Look,
There are 20 trading days per month. If I make $ 50 PER DAY, that's $1000!!!

I can treat my family to THE FINEST RESTAURANT IN TOWN!!!
THE BEST WINE, THE BEST SHRIMP/PRIME RIB WHATEVER IN TOWN.

I CAN LIVE LIKE A F-ING KING!!!


I KNOW THAT MAY NOT BE ENOUGH FOR SOME -BUT I'M JUST SHOWING YOU WHAT THE FX MARKET CAN PROVIDE.

IF YOU'RE WILLING TO HAVE SOME DISCIPLINE.............
  • #295
  • Mar 26, 2011 1:40am Mar 26, 2011 1:40am
Quoting Monroe
By nature of a successful trader, he would eventually have a large sized account and it would be in his best interest to use an institutional platform with a prime broker... especially if he was "aggressive" on fast timeframes. I would say it's pretty much required. But hey if you guys wanna try and get rich quick with 500:1 on MT4 go for it.
Eventually. That doesn't help the skilled but under-capitalised trader living in the present. Such a trader will grow either by aggressively trading their own capital, and/or managing to pool the capital of others. This has nothing to do with 500:1 or MT4. It does have something to do with getting rich quick - it just requires aggression and the skill to match it.
  • #296
  • Mar 26, 2011 2:30am Mar 26, 2011 2:30am
Low or high leverage is not important long term.
Low leverage only means that it will take longer to lose all the money and then some...
  • #297
  • Mar 26, 2011 3:09am Mar 26, 2011 3:09am
Quoting Mr J
Eventually. That doesn't help the skilled but under-capitalised trader living in the present. Such a trader will grow either by aggressively trading their own capital, and/or managing to pool the capital of others. This has nothing to do with 500:1 or MT4. It does have something to do with getting rich quick - it just requires aggression and the skill to match it.
Ok I can agree with that, and 50:1 is plenty.
  • #298
  • Mar 26, 2011 3:45am Mar 26, 2011 3:45am
Quoting Mr J
Eventually. That doesn't help the skilled but under-capitalised trader living in the present. Such a trader will grow either by aggressively trading their own capital, and/or managing to pool the capital of others. This has nothing to do with 500:1 or MT4. It does have something to do with getting rich quick - it just requires aggression and the skill to match it.
  • #299
  • Mar 26, 2011 9:56am Mar 26, 2011 9:56am
Quoting Monroe
This was brought back out of nowhere... But hey, I'll say it again...

Standard institutional accounts never allowed 500:1 leverage. I hope you all understand that's crazy. You can go read up on why they did this at retail shops.

A real institutional account is 50:1 or less and has always been that way as far as I know. If you are a successful trader for over a couple of years, you would most likely have an institutional account. You would be getting tighter spreads along with true interbank pricing and more reliability as far as a counterparty....
If I were to play with 500:1 leverage, my position size would be 10 times smaller, that's it. (I use 50:1, my broker's max).

Leverage don't matter!
I found a penny today. That's +100 pips for me.
  • #300
  • Jun 13, 2011 11:20pm Jun 13, 2011 11:20pm
Don't matter..... TO YOU.

Speak for yourself.

Quoting ReaM
Leverage don't matter!
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