High leverage = High risk?

unsightlydray posted:
As someone with just a few dollars extra to give trading a shot, would it be possible at all to gain anything without the use of leverage? And is it even wise to use up all of your own cash?

Beagelv posted:
The use of leverage that brokers offer in principle makes sense, you should be a little prepared and learn all the nuances of how it works.

ddarko3 posted:

unsightlydray posted:
As someone with just a few dollars extra to give trading a shot, would it be possible at all to gain anything without the use of leverage? And is it even wise to use up all of your own cash?

Technically leverage helps you to gain more but the problem with them is that you can also lose completely

forextrader777 posted:
Leverage does help in multiplying your profits but don't forget that losses will also be in multiples which is why it needs proper understanding of how it works. So, it’s better to learn about it’s concept first.

Faujinn posted:
In order for it not to be so costly, you need to correctly, correctly calculate and prescribe in your trading plan.

dutchy1986 posted:
On small accounts you need it to be fair to have a chance at trading

Faujinn posted:
In order for it not to be so costly, you need to correctly, correctly calculate and prescribe in your trading plan.

LeviSievwright5 posted:
The higher the leverage, the higher the risk. So it is very important to be careful about leverage.

Tradelist45 posted:
right now i am using high leverage most of the time in demo ,
 it supports me to avoid unfortunate risk and losses when trading in a real account.

blandpatsyy posted:
Leverage sure is a double-edged sword, but without leverage trading would not bring in any scalable results. That is unless you have heaps of money to invest. How much would a movement of a few pips give on 3 or 4k. That also might be considered a big amount for a lot of current investors in the market. Considering most are part-timers, and some even college lads.
Had it not been for leverage, I would have stopped after meagre earnings. Still trading solely because of high leverage.

blackChelsea posted:
I think when newbies enter the live forex market, they want to book more profits with very small amounts, so leverage attracts them. But it should be kept in mind that leverage is associated with a certain amount of risk. While it can push your trades to make profits also at the same time it can put you in loss which is even more than your balance you have. When I started, I used to look for a 1:30 leverage ratio with a minimal balance that I can handle. This keeps my risk minimal. You can gradually increase your leverage ratio depending upon your earnings and understanding.