Hell everyone and first excuse my English since its not my main language.
There’s something that I still don’t get even though I’ve been years in here, maybe I’m the one who is idiot or maybe everyone else is the one who idiot…
And its about leverage as double edged sword that everyone else always says which never makes sense to me even from the first time I read about Forex and I’ve been years in here
Honestly I felt hilarious when I read the lesson on babypips about leverage and how dangerous it is with long, useless, and over complicated… I don’t feel newbies need to read such a thing…
How can huge leverage give danger to us while it only helps us… ?
Its always the lot size or type that matters, why make things more complicated by saying its because we have too big leverage so we should use lower one etc…
Here’s my example:
I have 1000 $, I want to risk 2 % per trade with 20 pips stop loss, then that means 1 pip should be worth of 1 $ and we need to open 0,1 lot size right ?
And that’s it… its enough if we can count that, it has nothing to do with leverage as long as its not too small, the bigger is the better…
It doesn’t matter your leverage is 1:100 or 1:1000. If I get offered 1:1.000.000 leverage then yes I’ll still use it as it cuts down the margin we need, all we need to care is our lot should be 0,1 and we’ll be fine… why distract peoples attention by saying its leverage fault etc… ???
Its the lot size or type that always matters, the bigger the leverage the more positive it is because the less margin we need and the less chance we’ll get stopped out.
My approach and suggestion to newbies is to be careful on the lot size instead of leverage ( as long as its not too small ), while babypips gives that far far far consideration which is unnecessary and only makes newbies confused more…
What are your comments about this ?