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What leverage is best for a newbie?

  • #21
  • Apr 12, 2017 4:14am Apr 12, 2017 4:14am
According to me, leverage is dependent on one’s risk appetite. And for a newbie 1000x leverage is way too much high. If high leverage increases the chances of more profits then chances of high losses also increase simultaneously as you never market goes against you with massive spikes.
  • #22
  • Apr 13, 2017 3:41am Apr 13, 2017 3:41am
I even use less than 1:1, typically 0.2:1 up to 1:1.
  • #23
  • Apr 13, 2017 7:12am Apr 13, 2017 7:12am
I just go to the local exchange and buy sell when I feel comfortable .
  • #24
  • Apr 16, 2017 3:13am Apr 16, 2017 3:13am
In my opinion , 1:200 leverage is good for a newbie. Because at these leverage there will be a low risk and average profit that a newbie will be interested to trade in Forex market as well as invest. When a newbie invest in Forex market and have not enough knowledge about leverage , they take high risk . so that leverage is better option to me.
  • #25
  • May 10, 2017 1:03pm May 10, 2017 1:03pm
Anyway , there are people who trade with 1:2000 leverage ,

or even 1:3000!
I use 1:500 mostly and it seems normal , bot so big.
  • #26
  • May 10, 2017 1:31pm May 10, 2017 1:31pm
i have demo account with 1:500 and live with 1:200, still a beginner
  • #27
  • May 11, 2017 9:10pm May 11, 2017 9:10pm
1st of all, traders need to select their trading leverage according to their strategy’s requirement! Depending on high trading leverage facility is always costly! In addition, novice traders should follow defensive way of trading, that’s way low trading leverage is the best choice for them! I started my live trading with 1:100 but now I am using 1:300 leverage!
  • #28
  • May 12, 2017 12:58pm May 12, 2017 12:58pm
Quoting DarrenLehma
The newcomers always should be careful before using leverage, because it always contains risk. If you know how to manage risk when trading, then it is possible to make profit very rapidly by using leverage, otherwise your condition could be as like short time suicide.
Of source it is more important to make sure a real money managing plan when it is time to use leverage.

But I think you have to also ensure a sufficient trading balance besides money management plan if you want to get maximal result by using leverage.
  • #29
  • May 13, 2017 1:36pm May 13, 2017 1:36pm
At the present I am using 1:10 to 1:100 . more leverage become a killer practically. My broker offering high leverage but wisdom is in using appropriate leverage that is manageable for me easily. If I use much leevrage it can low my account any time.
  • #30
  • May 17, 2017 10:46pm May 17, 2017 10:46pm
Yes, 1:1000 trading leverage is really too high not only for the novice traders but also for pro traders! I have 5 years trading experience and right now I use 1:100 trading leverage! Actually, I have a healthy trading equity so I don’t need to rely on high trading leverage facility! In my beginning sessions of demo I also used 1:100, so I am use to this leverage ratio!
  • #31
  • May 17, 2017 11:21pm May 17, 2017 11:21pm
Quoting MarkFxAnde
What leverage will you advice as a newbie trader to use? Do you think 1:1000 is too high for inexperience trader to use? Because I have been advised against using high leverage but again I thought it broker have provided it why wont I use it. What you think?
It's all relative brother. Higher leverage allows you to open more trade with less money but if the trade goes in the right direction you're safe.
However if it goes the other way, you are opened to higher risk. So you have to use it responsibly.

Let say the broker is 1:100 with 10k, you'are able to open 1lot trade at least 5 to 10 trades.
If the broker is 1:500, with the same amount, you're able to open 1lot trades at least 25 to 50 trades.
Why more with 1:500, because the more leverage, the lesser margin which equals to more money you can allocate to hedge or bet on to(anyone CMIIW).
This is not investment/trading advise. Will not hold accountable for loss
  • #32
  • May 31, 2017 3:36pm May 31, 2017 3:36pm
Quoting micbrook
i have demo account with 1:500 and live with 1:200, still a beginner
very good job Mic.
don't use high leverage at all in live trading until acquiring real risk managing plan. now you are in right way.
  • #33
  • May 31, 2017 3:44pm May 31, 2017 3:44pm
Leverage always contains risk. So the traders who are particularly newcomers always have to trade with small leverage in live account. But they can use high leverage in demo trading to see the performance how it works.
  • #34
  • Jun 5, 2017 1:49pm Jun 5, 2017 1:49pm
What Leverage is best for a newbie?
NONE.

Trade a demo account, until you have doubled it at least 5 times.
Then open a small micro/cent real account.
Do the same, then consider adding to it, or growing it organically.
  • #35
  • Jun 5, 2017 3:31pm Jun 5, 2017 3:31pm
It’s nice. Thank you very much for your approach.
  • #36
  • Jun 21, 2017 3:27pm Jun 21, 2017 3:27pm
Quoting FarceAdentus
What Leverage is best for a newbie? NONE. Trade a demo account, until you have doubled it at least 5 times. Then open a small micro/cent real account. Do the same, then consider adding to it, or growing it organically.
My trading career I always take high leverage in demo account to see the performance how it works. This approach always helps me to avoid risk when trading practically.
  • #37
  • Jun 21, 2017 6:02pm Jun 21, 2017 6:02pm
Quoting FarceAdentus
What Leverage is best for a newbie? NONE. Trade a demo account, until you have doubled it at least 5 times. Then open a small micro/cent real account. Do the same, then consider adding to it, or growing it organically.
if you trade with good risk and steady grow and small drawdown you would need for 1 doubling maybe 1 year, and many even cant do so. so in your plan you would need 5 years for demo account and other 5 years for cent accounts doubling 5 times each . thats very long. or people try demo with bigger risks, but then people dont learn anything from it.

best is starting with cent accounts and very small money should be the way to start, so you dont start with useless demo account trading with many disadvantages and you dont try strategies that will not work in real account feeds later.
  • #38
  • Jun 29, 2017 9:31am Jun 29, 2017 9:31am
Thank you , nice advice.
But I think it will take a long time to see the performance how it works.
  • #39
  • Jul 9, 2017 2:11pm Jul 9, 2017 2:11pm
When I was a newbie in Fx don’t use leverage at all. actually leverage is not a inevitable part of trading for newcomers. As a newcomer you can use leverage in demo account to see the performance how it works but not with high leverage, because it can make you greedy when you live trading practically.
  • #40
  • Jul 9, 2017 6:34pm Jul 9, 2017 6:34pm
Max leverage is best - so you can learn your lesson quick...
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