What leverage is best for a newbie?
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Thread: What leverage is best for a newbie?

  1. #1
    What leverage will you guie as a newbie trader to utilize? Can you think 1:1000 is too high for inexperience trader to utilize? Since I have been advised against using high leverage but I believed it broker have supplied it why will not I use it. Everything you think?

  2. #2
    If you don't know how to use it than to gods sake don't. 1:1000 leverage is massive.Learn to win with little leverage and tiny lotsizes, and as soon as you get good you can gradually increase leverage but still you have to know how to use. Cheers

  3. #3
    I believe for the newbie the best leverage is 1:20(max) attend no 200. Bu the traders that has 100% wining method in forex currency trading can utilize 1:500 leverage . 1:500 leverage will probably be best for all those traders. However, 1 thing that, all leverage are all great. It is depends upon trading egies and egy of a trader.

  4. #4
    If you drive a car with a max speed of 200 MPH is that car more dangerous than driving a car with a max speed of 80 MPH?

    You are in charge of the accelerator so only more harmful if you step on it too challenging. Are you in charge of your actions or do you need somebody else to set restrictions on for you?

    If you lose $20 in 1 trade with a $100 account, will the account endure long based upon your trading style/performance ?

    Calculate the dollars forget about the leverage amount.

    Just my view.

  5. #5
    In the name of all that's holy, please don't use 1:1000, as most possibly this experience will end up with a huge disaster. Leverage work either way, it either helps you when you know what you are doing or may kill your account in a matter of moments if you are unexperienced. The best egy is to begin low with 1:50 -- maximum 1:100, gain some experience, and then and only then go to greater leverage if need be.

  6. #6
    Should you mean ACTUALLY employing the 1:1000 leverage complete out then yes its not suitable for a novice or anyone at all. This large leverage would be a pute bet so if this is what you are trying for then proceed
    sole reason I can see such large leverage will make sense is if a person is too reluctant to deposit a major sum onto an forexbroker account. So rather than depositing 10.000usd using 1:100leverage it is possible to deposit 1.000usd and still trade same lot dimensions together with all the 1:1000leverage. Should you go bust reload...

  7. #7
    Quote Originally Posted by ;
    .... If you go bust reload....
    You mean when you go bust


    let us make sure we place the appropriate expectations

  8. #8
    Quote Originally Posted by ;
    quote you mean when you go bust let's ensure we set the proper expectations
    kindly state if the exact probable second comes and you go bust, reload.

    But in all seriousness. What I am saying is that you do have 10.000usd but only deposit 1.000 for your finance securities interest. Itself is not affected. You merely make use of the leverage your brokers offers you in a smart way.

  9. #9
    Well that is just another egy with small deposits to go full throttle but that is pure gambling of course and its really formula 1. Its not great for a newbie to ride a formula. Better start off using a small car

  10. #10
    Quote Originally Posted by ;
    What leverage would you guie as a newbie trader to utilize? Can you think 1:1000 is too large for inexperience trader to utilize? Since I've been advised against using high leverage but again I believed it broker have provided it why wont I utilize it. What you think?
    I would counsel you to understand leverage initially and then start to make use of it. The question clearly demoned that you do not understand leverage. 1:1000 is perhaps what your broker offers you (provided leverage) but really doesn't matter how much. The interesting question is the position size in relation to your account equity, in other words your own employed margin or your leverage. In the soul of srts post: you don't need to go full throttle.
    I would strongly advise not to think in leverage, margin or what not else but in money per pip and observing that logic your next issue is how far should/do I would like to risk per trade? And there you have your position dimensions. If your offered leverage allows you to exchange that much (which is practically guaranteed at 1:1000) you're fine.

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