Shouldn�t I leverage heavily so I can earn more?
[B]No[/B]
Put at risk a maximum of about 2% of your total income.
Unless you want a margin call 
…see Babypips school, last chapter.
Things could also go the other way around and you’d lose more. Leverage amplifies your profits as well as your losses. Though it would be nice if it would always go your way :]
A broker will encourage you to use high leverage, but the reason is because your position size dictates the spread income. The larger the position, the more money your broker makes.
Well, maybe. After demo trading for months I went “live” with a 1K US acct., 2.5% risk at 20:1 leverage. It was like watching paint dry. The strategy I used then required close attention while in a trade and after 1 or 2 hours I would have less than $5 added to my margin acct. I now trade 10% & 50:1. Yes, both wins and losses are bigger but I am trading currency and not a toe dipper. The IcyCloud strategy is building up my acct nicely now. d
In demo, with a $1K startup, I’m using 100:1, risking 2% and using 0.1 lots, increasing lots by .1 as the balance increases by 1K. So each pip is worth $1 x .lots, so at 2K balance and 0.2 lots each pip=$2, 3K balance and 0.3 lots = $3, etc.
Babypips didn’t cover that scenario so wonder if anyone has thoughts on this setup.
Sounds as though you have a good handle on margin/leverage - care to share your strategy. d
which trading system you are using?