Hi I am new to Forex and reading voraciously about it for past 2 months. I have started a demo account and will usually use the daily chart for entries and exit.
I was planning to go live with a $1000 account. If I can tolerate 2 % risk that would be $20 risk per trade. According to risk calculators, if my SL in pips is 100 pips per trade ( for EUR/USD), I can only take 0.02 lot size per trade. That sounds pretty small but I guess it will test my patience.
So no matter what my leverage, I CANNOT take a position of more than 0.02 lot size. I can take another position only after my first position becomes break even and I have maually moved my SL to breakeven position.
With high leverage, I can take a lot of positions, but I should not risk more than 2% capital of my COMBINED positions.
So leverage is not a bad thing at all as long as we can manage our risks properly
Does it make sense?