Hello,
Everywhere I read that using high leverage is bad… I am just a little confused.
Lets say that I have $500 in my account, my risk is always 2% (or $10 on this trade)
I see a trade set up and to give my trade a chance at working out I need a 40pip stop, so I adjust my lot sizes so that it works out to $0.25 a pip.
With managing lot sizes to get to the proper pip value for my risk, I don’t understand how using high leverage is bad.
Can some one try to explain it to me as I must not be understanding it correctly…
Chris