Excessive Leverage

Discussion in 'Trading' started by sobemark, Mar 24, 2010.

  1. Why do most novice traders believe the more leverage they recieve the better chance they will have to make money.

    Let it be known that leverage is a double edge sword and if you don't know how to trade with 2-1, 4-1, or even 10-1 leverage... then 50-1 or 100-1 certainly will not help your quest !

    Guys, learn how to trade first, and worry about the leverage last. Firms offering 20-1 leverage or more to beginners is just a quicker way for the trader to get to -0- !!

    --mb
     
  2. Yep. You'd think this would be common sense, but apparently not.
     
  3. Greed is a powerful elixer, and one of the most potent ways to lose a fortune fast, IMO.