High leverage , High risk ?

Sep 24, 2017 at 06:27
4,873 Views
100 Replies
Member Since Feb 22, 2011   4862 posts
Nov 15, 2018 at 14:36
Jingyi posted:
A beginner will lose it all on 1:1000 or 1:10. I think there should be enforced use of demo account for 1 month before open live account and a video course on risk management that all traders must watch before account is opened. That would help people a lot more

Even after ESMA which limits leverage drastically there is no decrease of losing traders.
Member Since Feb 12, 2016   427 posts
Nov 16, 2018 at 08:37
togr posted:
Even after ESMA which limits leverage drastically there is no decrease of losing traders.
Indeed. The only difference is that they have to deposit bigger amounts of money in order to lose.
Accept the loss as experience
Member Since Aug 09, 2017   785 posts
Nov 18, 2018 at 12:50
For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.
Member Since Aug 27, 2017   994 posts
Nov 19, 2018 at 11:11
Imamul posted:
For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.

Same to me! I think, most of the retail traders who are aware of money management issue they are playing with 1:100 trading leverage.
keeping patience.......
Member Since Aug 11, 2017   886 posts
Nov 24, 2018 at 10:21
Trading with high leverage in demo account is right decision , because leverage contains always higher risk in live account , it could be dangerous at any time despite of most accurate trading plan .
Member Since Aug 27, 2017   994 posts
Nov 25, 2018 at 08:14
Mohammadi posted:
Trading with high leverage in demo account is right decision , because leverage contains always higher risk in live account , it could be dangerous at any time despite of most accurate trading plan .

I don’t think it’s a good idea. Because, we need to treat in the demo as like our live. Same strategy, same plan even same mental preparations.
keeping patience.......
Member Since Nov 26, 2018   10 posts
Nov 26, 2018 at 08:50
Adribaasmet posted:
Mohammadi posted:
Trading with high leverage in demo account is right decision , because leverage contains always higher risk in live account , it could be dangerous at any time despite of most accurate trading plan .

I don’t think it’s a good idea. Because, we need to treat in the demo as like our live. Same strategy, same plan even same mental preparations.
i agree. demo is available to us for learning, why would we need demo if not for learning how to pull off our strategies and how not loose money.
Member Since Apr 18, 2017   920 posts
Nov 27, 2018 at 08:10
Basically, seriousness is very important! If we are not careful during demo trading, then there is no value.
Member Since Mar 12, 2018   40 posts
Dec 03, 2018 at 12:51
AniLorak posted:
Basically, seriousness is very important! If we are not careful during demo trading, then there is no value.
You are absolutely right mate, demo is useless for you until you don't take it seriously.
Member Since Jan 03, 2018   162 posts
Dec 10, 2018 at 15:05
you must use the same mindset than real money trading
nick123427@
Member Since Feb 22, 2011   4862 posts
Dec 10, 2018 at 15:09
SaltaLargo posted:
When on demo it is important to use same leverage account because if demo is 1:500 and real is 1:20 there will be big difference in number of trades opened

Rather in size of the trades
Leverage does not affect opening trade but its size
Member Since Dec 28, 2018   9 posts
Dec 31, 2018 at 13:35
Why Leverage is Incorrectly Considered Risky. Leverage is commonly believed to be high risk because it supposedly magnifies the potential profit or loss that a trade can make (e.g. a trade that can be entered using $1,000 of trading capital, but has the potential to lose $10,000 of trading capital)
Member Since Apr 18, 2017   920 posts
Dec 31, 2018 at 15:24
SaltaLargo posted:
When on demo it is important to use same leverage account because if demo is 1:500 and real is 1:20 there will be big difference in number of trades opened

I think, traders should use the demo as sincerely as like their real account! In addition, same trading features including the leverage number.
Member Since Aug 27, 2017   994 posts
Apr 28, 2019 at 10:59
AniLorak posted:
SaltaLargo posted:
When on demo it is important to use same leverage account because if demo is 1:500 and real is 1:20 there will be big difference in number of trades opened

I think, traders should use the demo as sincerely as like their real account! In addition, same trading features including the leverage number.

Yes, that’s the good practice! I see, which traders are enjoying today’s live trading, they were very serious in their demo, that’s the main trick.
keeping patience.......
Member Since Apr 18, 2017   718 posts
Apr 29, 2019 at 10:42
Well; I am not against on demo practice! But I think, if traders are unable to concentrate in demo; in that case cent account is a good alternative choice.
Member Since Aug 27, 2017   994 posts
Apr 29, 2019 at 13:45
AmDiab posted:
Well; I am not against on demo practice! But I think, if traders are unable to concentrate in demo; in that case cent account is a good alternative choice.

Yes, it can be! I believe, traders should try with the demo as much as possible! Because, the environment is almost same.
keeping patience.......
Member Since Apr 18, 2017   920 posts
Aug 26, 2019 at 17:03
Adribaasmet posted:
AmDiab posted:
Well; I am not against on demo practice! But I think, if traders are unable to concentrate in demo; in that case cent account is a good alternative choice.

Yes, it can be! I believe, traders should try with the demo as much as possible! Because, the environment is almost same.

Of course; having a long term trading plan is important on demo; I see, in this case using small trading balance is useful!

Member Since Aug 27, 2017   994 posts
Sep 01, 2019 at 15:19
Roberto21 posted:
For avoiding risk I always use 1:100 leverage in spite of having up to leverage 1:2000 , actually leverage is an important financial tool which always contains risk , so it is better if we avoid using high leverage in real account.

Nice ratio on trading leverage but what’s your risk reward ratio on per trade?
keeping patience.......
Member Since Jul 19, 2020   788 posts
Sep 10, 2020 at 00:49
New traders usually get into this kind of problem. Causes losses in high leverage trading. If a trader does not follow money management and risk management, he will never be able to make a consistent profit. Risk management has the power to cover the losses of two trades with one trade. Money management protects your investment at all times. So if a trader trades without maintaining high leverage and discipline, he will never succeed in trading.
Member Since Jun 26, 2020   327 posts
Sep 10, 2020 at 06:45
yes , i think also , high leverage contains high risk , generally i never use high leverage even though i can predict the real faction of this market with certainly.
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