Hmmm, I think that it’s depend on how do they manage it. Leverage can be the killer, LOT/Volume can also be the killer.
For using leverage, if you have small balance, you must use high leverage 1:1000. it will be safe for your account.
So, learning forex more and more. it will help you
Why would leverage be a killer in trading? Without leverage, you can’t even trade. To note the utmost fact that, most traders loses money because they over-leveraged. If you had a leverage of 1:500/1:1000 and you still utilizes the risk management of 1 to 2% per equity, it’s totally fine. Unless you are risking more than the standard 5% with 1:500 leverage, you’ll definitely bust your account in a short period of time.
Hehehehe, dude the OP was banned 82gazillion years ago
The Ever Laughing VIPER
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If you know what you are doing, leverage only helps you out. But if you don’t know anything, then yeah, it will destroy you.
If my risk management policy is sound, meaning I know exactly how much I am willing to loose in each trade, then leverage is meaningless…it only helps me to open up another valid setup.
That’s it…
Yes and no. Yes because many newbies just want to be bold and even if they have a trading plan, often play risky. They don’t understand that smaller lots are better for risk management and that more than 1 or 2% should not be risked. Stop loss is something they never bother about using as they think in a few days they know more about the market and can become millionaires. I can say this because I was one of them. You talk about a broker and I have seen my balance in it swiped to 0. From IB to Fxview to Pepperstone. I have blown them all lol
Coming to where I think leverage is not the killer is the fact that it is the trader’s mindset which is to blame in this. Overtrading, revenge trading, lack of knowledge, these are the factors that lead to losses. And then the delusion begins. It is always advisable to understand trading psychology, practice emotionless trading with small amounts (low minimum balance brokers like fxview, avatrade are helpful here) and then finally get on to the big monies.
If used blindly, without any plan leverage can definitely be a killer. It is better to use lower leverage, if cannot do without it.
Yes, if you do not set the leverage properly, it is very difficult to sustain the trading investment.
If leverage is not selected properly, it is not possible to sustain the trading investment. I think 1:50 leverage should be used.
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Its a double edge sword. More we use, more is the risk. I feel, its always safe to use as less as we can.
I agree with you buddy. Selecting leverage is a crucial part of trading and if it is used blindly, surely it will backfire.