How much Important of Leverage for Trading

Aug 25, 2020 at 11:39
3,225 Views
56 Replies
Member Since Jan 10, 2020   28 posts
Sep 11, 2020 at 09:27
AliaDare posted:
Leverage is very detrimental to low investment. Your account is always protected when the leverage is low. It is very important to keep low leverage to follow money management and risk management. According to the trading plan, it is possible to make a consistent profit by working with low leverage.

hello sir.
thank you for explanations.
i have one more question please. you told that low leverage protects an account. but if i put leverage 1:30 i need more money on my acc trade. that is i cannot trade. so i need to put more higher leverage. what about 1:100? is it ok?
Member Since Jul 20, 2020   341 posts
Oct 09, 2020 at 18:06
Leverage is very useful for low investing traders. it helps them to make more profit with their little investment.
Member Since Jun 30, 2020   37 posts
Oct 26, 2020 at 05:17
You can make a lot of money because of leverage if your investment is low and short term. It is very important to protect your account if the leverage is low.
Member Since Apr 13, 2018   35 posts
Oct 30, 2020 at 11:00
Everyone is in commenting on this post to just increase their post count. Nice people. Even the actual questioner is not in this world now. But we're still making good use of his years-old thread. SO considerate of you all. Keep it up.
Indicators are so deceiving, always lagging. Trend lines & Calendars are the best.
Member Since Oct 01, 2020   49 posts
Nov 05, 2020 at 11:14
Leverage is truly a double-edged sword. You must only use it when you know where the market trend is going.
Member Since Jul 25, 2018   319 posts
Nov 05, 2020 at 12:06
Lorencecolling posted:
Leverage is truly a double-edged sword. You must only use it when you know where the market trend is going.
Yes it's true, but also how much orders you want to open.
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Member Since Oct 08, 2020   29 posts
Nov 09, 2020 at 10:40
I may be wrong but I see leverage as an option that increases your chances of losing more money than you can afford to lose. I don’t know how come people are so brave to take the risk. I have never used leverage more than 5x.
Member Since Mar 28, 2021   617 posts
Dec 29, 2021 at 10:20
Leverage is an important financial tool which an investor should consider when choosing a broker, it allows an investor to grow his market exposure to a level that exceeds the initial investments
Member Since Jul 20, 2020   399 posts
Dec 29, 2021 at 11:52
Harshalgibbs posted:
I agree that leverage can make it easy for you to make more profits. But at the same time, it also enhances the chances of you losing money.

Not necessarily. You can use high leverage and make sure you have risk management and lot size correctly chosen. It is great to compound accounts if done properly
Member Since Jul 19, 2020   751 posts
Dec 29, 2021 at 12:24
Many options in using leverage, and in theory and risk, using smaller is better, as I use leverage to keep the 1:100, do not let too many open positions
Member Since Jul 23, 2020   869 posts
Jan 03, 2022 at 17:41
Leverage is the most effective technique to create a large sum of money with a little quantity of beginning capital.
Member Since Jul 23, 2020   759 posts
Jan 05, 2022 at 00:30
Leverage is truly called the double-edged sword. You must only use it when you are sure about the market trend and know that you will win. If you are even a little unsure, I don’t suggest using leverage.
Member Since Jan 05, 2022   8 posts
Jan 05, 2022 at 10:00
Without leverage fx trading would not be possible unless you were rich. leverage is king in this world.
Member Since Apr 09, 2019   538 posts
Jan 05, 2022 at 10:55
It enables more people to actually trade but by the same token it allows more people with poor risk management to misuse it and lose their money.
If you can't spot the liquidity then you are the liquidity.
Member Since Jun 12, 2021   132 posts
Jan 07, 2022 at 07:46
the leverage could be dangerous if you have no trading plan with zero risk management, so traders should develop the money management first of all.
Member Since Jan 07, 2022   9 posts
Jan 07, 2022 at 10:34
So true. leverage can be very dangerous with no risk management. Too many trader make small deposit then enter a trade at 1Lot and lose every thing
Member Since May 31, 2021   48 posts
Jan 07, 2022 at 11:18
I have seen many blowing their accounts with leverage. Leverage is that much powerful that it can take you on clouds or even to the core of the earth. Play with it safely.
Member Since Jul 17, 2020   13 posts
Jan 07, 2022 at 18:18
Well, I would say that leverage is not vital for trading. I mean that you can easily do without leverage, however, you will have smaller profits. To tell you the truth, I think that the newbies should stay away from trading with leverage because not every beginner understands how to evaluate the risks which they have within a concrete deal. Before trading with leverage you should understand how to measure the risks and manage your budget in order not to lose everything within sheer minutes. Later on you can think of using leverage in your trading but with caution. You definetely should be aware of money and risk management in order to make your trading more or less safe for your budget.
Speaking of high and low leverage, it is important to note that the higher leverage you have, the more risks you take. I don't see any problems of trading with huge leverage. The only thing is that you should be careful about the position size. You can regulate it as if you wish.
Member Since Apr 03, 2021   8 posts
Jan 13, 2022 at 20:41
As usual, you need to find the golden mean. If the leverage is too high, then, surely, the potential profits will high, but you will run more risks. Somtimes the leverage can lose $100 within a minute, that is why I strongly recommend to trat leverage with caution. It is hard to say what leverage should be specifically because we all are different and one man's meat is another man's poison. So, you should decide for yourself.
Member Since Dec 26, 2019   21 posts
Jan 14, 2022 at 14:30
I believe that all traders decide on their own, whether leverage trading is important for them or not. The matter here is to understand how much place leverage trading takes in your trading activity. If you try to stay away of the leverage trading, because you are afraid of facing such risks, then of course, it will be quite difficult for you claim that leverage trading is significant for you. Probably, you will tell that you don't care about it at all. Some traders who are fond of leverage trading might say that leverage trading means everything for them because it brings the money. Here everything is pretty individual.
Centrillador
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