How do I determine which leverage to use once I start trading live?
Experiment on a demo account first. Do not risk more than 1% of your capital per trade - which is how pro traders manage their money.
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Try to stay away from leverage, maximum 2% of your capital is what you should be risking always. Even 1% to be more safe. And I hope you are using a broker that provides negative balance protection, there are many: fxpro, fxview, fxcm, because even when you take all precautions volatility of the markets can come as a surprise any don’t want to see your balance gone down to minus.
I mostly use fxview for trading smaller charts for its low spreads/commissions and sometimes not putting sl is better for me as the seconds it would take for it to trigger can be disadvantageous for my 5 pips strategy. But you know how erratic markets are and it’s the NBP that comes to the rescue then when the trend reverses in the opposite direction.
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I don’t agree with you that much. In my opinion, leverage increases the prospects of profit. So in order to earn more, you need to trade more which is possible through higher leverage. If you are more concerned about the risk then you will never be able to earn more
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In my view, every trader should follow risk management. If a trader cannot control risk, he will never be able to succeed in trading. 1: 2 risk-reward ratio must be maintained and no more than 2% risk can be taken for each trade.
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It is never possible to go ahead in trading without practicing risk management. So every trader should first maintain risk management.
In the beginning, use as low leverage as possible.
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In the beginning of live account go for low leverage. don’t risk too much capital, start with 30:1 leverage