High leverage , high risk ?

[lioneld]

In my opinion, higher leverage is more higher chance to get more profit with small capital..

May I know your current number of trading leverage? I am really interested to know.

 

[TiongeEdi]

what are the objectives of risk management?

 

[Fx Master]

high leverage always contains high risk , there is no one who can avoid it , but if you know how to manage money when trading , there is a little chance to avoid risk when using leverage.

 

[Svetlana Loboda]

Well; if you are comfortable with high risk; you can use! But the point is; no one can be a successful trader with high risk reward ratio!

 

[Fx Master]

i have seen most of the traders above all beginners level consider high leverage as a much risk but i don't consider it , if there is any risk it is completely with non-sense planing with zero risk management plan.

 

[The trader]

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.

 

[Andrew McCalam]

leverage is a very complicated issue in Fx trading , sometimes it bring profit very rapidly , sometimes it causes a great losses and risk in spite of having risk management , but after all its one of the major financial issue in Forex.

 

[Adowyn]

In the beginning, I used leverage, but each transaction accounted for 2% of my deposit.
I very carefully analyzed the market, could watch the charts for hours and only then open a deal.
And if you set a stop loss, then the loss becomes less.
Leverage is a good thing for beginners, but it’s better to practice a demo account at the beginning.

 

[Svetlana Loboda]

In the beginning, I used leverage, but each transaction accounted for 2% of my deposit.
I very carefully analyzed the market, could watch the charts for hours and only then open a deal.
And if you set a stop loss, then the loss becomes less.
Leverage is a good thing for beginners, but it’s better to practice a demo account at the beginning.

So now you are trading without leverage? Are you trading with 6 digits account? Really?

 

[LorrainMor]

Over-leveraging is the second mistake of “what are the 10 fatal mistakes traders make”. Over-leveraging is a two-edged sword. In a winning-streak, it could be your best friend, but when the trend changes, it becomes the greatest enemy. Recent talks about banning leverage higher than 1:50 for experienced and 1:25 for new traders in the UK have been a result of a lot of traders losing their money too fast.

 

[Svetlana Loboda]

Over-leveraging is the second mistake of “what are the 10 fatal mistakes traders make”. Over-leveraging is a two-edged sword. In a winning-streak, it could be your best friend, but when the trend changes, it becomes the greatest enemy. Recent talks about banning leverage higher than 1:50 for experienced and 1:25 for new traders in the UK have been a result of a lot of traders losing their money too fast.

Yes; 1:50 trading leverage is a good choice; newbie’s should concentrate on quality instead of the quantity of trades!

 

[Andrew McCalam]

generally the target we select is not realistic, this is the main problem we have and for that reason we cant fill up our target completely, we have to make sure the target according to our knowledge and experience , over targeting make make us always greedy and emotional. so be careful

 

[Faal]

Managing 2% risk until until closing any order its not an easy task , pro trader can manage their risk ratio accurately because of having long term experience. but as a beginner there is no chance to keep 2% risk for all time , but if we practice more and more above all in demo account there is a possibility to become knowledgeable about risk management.

 

[Fx Master]

In Fx trading , by and large traders in particularly the newcomers fall a great loss by taking high leverage due to non sense planning and zero risk management policy, nothing to do with high leverage at all. so, I think, before trading with high leverage we have to know how to manage risk.

 

[Andrew McCalam]

leverage is a very complicated issue in Fx trading , sometimes it bring profit very rapidly , sometimes it causes a great losses and risk in spite of having risk management , but after all its one of the major financial issue in Forex.

 

[Faal]

Generally newcomers always try to make profit very rapidly by using high leverage and become loser because there is no money managing plan. Leverage always contains huge risk and by using this financial tool if you want to earn profit first of all make sure how to manage money in Forex.

 

[Andrew McCalam]

its a best leverage for avoiding unfortunate loss and risk. before using in live we should use it in demo to see the performance how it works.

 

[Chionao]

This depends of your definition of risk. Yes you can destroy your whole account with just one trade, high leverage allows you to do that. But the reward is also high, you could double your account balance with just one trade although I don't suggest it. Some strategies are built on this one concept, you try to double you account with a few trades, after you doubled it you withdraw your own money and use the earned money to double the account again, this goes on and on until you get margin call, the you enter a defined amount again and trade again. After all I don't think leverage would be a bad thing.

 

[Andrew McCalam]

Managing the risk is the most demandable ability in Forex market where risk is everywhere. My trading career, many times I fallen a great loss due to lack of exact risk management . now I am studying about this

 

[Lee Mark]

Managing the risk is the most demandable ability in Forex market where risk is everywhere. My trading career, many times I fallen a great loss due to lack of exact risk management . now I am studying about this

Honest answer! Thanks your words; and that’s the reality! Without following the rules of trading; there is no alternative way!