High leverage trading - is it dangerous?

When you combine ignorance and leverage, you get some pretty interesting results. -Warren Buffett

Risk comes from not knowing what you're doing- Warren Buffet

High leverage trading - is it dangerous?

Yes and no.

I.T.R.S.

It's the risk stupid.

I consistently use high leverage to increase my returns, however I always ensure that I am trading within my limits......Trading in general is a risk, so unless you understand how and why to use leverage within your strategy and are also prepared for the potential downside.....then yes it can be risky but never 'dangerous'

yes it could be http://www.forexfactory.com/showthre...02#post7591002

Yin and yang...increased risk equals increased returns.

Precision is of particular importance when high leverage is involved...one should not exceed 10 pip stoploss using 200:1 leverage, in my experience at least!

It's safe if you can manage it. YOu should make a plan and think what would happen with the high leverage trades. I think if you can do it good, you can manage it well. Even with small leverage, if you trade without planning, I think soon or late, you account would get blown up.

yeah there is a risk in high leverage trading, but its not the only factor i guess, there is the lot size as well whcih might as well do double damage or multiply your profit, so here comess the strategy used, some traders profit a lot from high leverage and good RR management, I started trading a 2 years a go with htoforex on a 1:500 leverage but sticked to micro lots, it worked fine with me, but sometimes i wonder what people do with leverage such as 1:1000 it can be really scary unless its a one hit gamble to double triple your small investment in no time i guess,.