This question is for experienced traders:
What tips do you have for using high leverage up to 400x
for major pairs?
Leverage is not what you actually use but what’s available. Leverage gives you greater buying or selling power but accepting it is up to you.
The rule of thumb is to use low leverage when your trading capital is low so that random streak of losing trades won’t produce uncontrollable drawdown.
Have a maximum lot size of 0.1 - 0.2, because your set up is high risk and not managed. With apologies, I also set a mental loss maximum, but also take advantage of using a S/L trailing process by shifting it manually towards the break even price point. From there you cannot suffer a loss. And which together, manages the risk.
For example, if I’m aiming to make $ 20 minimum and the trade heads into losing territory, I’ll cut it off around the $8-9 mark. Always. No point in hoping it will retract, just accept you got it wrong and use the savings to fund a better trade. There’s always one awaiting.
The key is NOT TO LOSE MONEY. I hate losing as we all do, but I hate losing big, more so.
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Thank you for the suggestions.
Looks like leverage is available to use or not to use.
Well,my margin is low to manage risk.Low leverage
with a small margin is just demotivating and disappointing at best.It won’t get anywhere.
I don’t know about losing streaks.It hasn’t happened to me since Apr 2019.I just stop trading for the day,when I lose a trade and the losing amount is not small.
Thank you for your suggestions
Be cautious when it comes to using high leverage. A lot of beginners make this mistake and lose a lot of money that way. Many experts say that they use a leverage of around 1:100 and I tend to follow that advice to avoid large losses.
high leverage for all times causes high risk its not true , if there is high risk it is completely with low money management with zero risk management.
Yes, money management is the key to having a successful trading plan. Without it, anyone can be lost so it is better to focus on it, right.
leverage is tend to be used wisely. its double edged and can give you good profits and a lot of losses.so one needs to know his/her limit while selecting the leverage.
Pairing money management along with a proper risk management can do wonders for a trader. Some techniques like stop loss can be used to minimise potential losses while risking a small percent, say about 2% of the capital can be a smart risk management tactic.
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I try to keep my leverage pretty low since I don’t risk much. Keeping it as low as 1:30 works well for me and it also helps me in managing unnecessary risk. I also try to go with brokers that provide the tightest spreads and don’t charge very high fees. Trading212, Fxview have a reasonable cost that helps me save some money.
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Thank you.
My trades are at least 90% winners from 30X to 400X leverage.So,leverage hasn’t changed that.
I’m trying to practice managing risk on demo.
I just need to stop a bad trade if it goes down to $-150 and stop trading the same week
This way I will be in $300+ profit every week.
I continue trading on demo this way,if it works consistently well for a few months,I will go live,again.
As long as I stop at 1 bad trade a week,losses are small bumps on the road.
Thank you.
That is quite a safe way of trading. I like that!
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My last trade was early morning today.
I had 2 losing trades.So,I stopped trading for the week and next trading day for me is gonna be on Monday.
I’m $160.08 in profit,for the week.
So far so good.
Margin: $500,leverage 400X for all trades.
Winning trades 14 out of 16 (87.50%).
Leverage has nothing to do with whether your trades win or lose. Winning and losing are purely a function of what direction your trade is and whether the market then moves in the same direction or the opposite, and then where you decide to exit.
Neither does leverage affect how much you make or lose, that is purely a function of your position size and the number of pips it moves.
The only impact (and function) of leverage is to determine how much of your account balance is reserved as margin against each trade. The higher your leverage the smaller the margin requirement. This means with higher leverage you can take larger position sizes with your available equity, which, in turn, affects how much you win or lose due to the larger position size. But whether that is a good idea or not is another matter!
Nobody said leverage creates winning or losing trades.
Leverage cannot change how much money you win or lose? The ‘X’ that you see after the leverage number multiplies wins and divides losses by the same number.That was funny!
You said that!
You’re leverage does not change how much you win or lose. It only determines how much of your margin is reserved.
Your result is the result of position size x number of pips. Leverage is not part of that equation.
Yes,you are repeating the correct part of your post,not the wrong parts.
Which wrong parts?