high leverage contains high risk , i think there is no way to avoid , without losses but using high leverage there is any chances to bring good profit ratio at all ?
Modern portfolio theory is based on diversification and the utilization of asset correlations. The use of long/short strategies can reduce the risks associated with leveraged trading.
Usually you increase your exposure because you decrease your initial risk. Inversely, you decrease your exposure because you increase your initial risk. Leverage is exposure but your nominal, or absolute, risk depends on the underlying payoff.
%% Almost never. One or 3 exceptions+ I cant think of the 3rd one. An overpriced home may payoff; if you worked out of it, had your recreation in it/smaller budget, Realtor agreed with that, or owner agent property...………………………………………………. I had a much bigger order than usual one time; home improvement + bid ask was equal.They could have charged me a 10% re-stocking fee/ but did not. The fact they could have kept me from ever or never doing it again. And so many get forclosed on that are over leveraged I don't do that myself...……..
Leveraging onto a breakout or area of capitulation can work well - but you really have to have a black-belt with your risk/trade mgmt. Don't stare at your open P/L, or your screw up the trade every time. Take one of your worst losing days & backwards engineer it, you probably avgd into a loser, fighting a strong trend in hopes it would reverse. If you can learn to flip the script on your hard wired human nature. You want to be a pig with the winners and a sheep in cutting losers fast & furiously every time, than you can use leverage to your advantage.
Yes it is possible but two prerequisites are low volatility and trend. Central bank easing policies showed pretty much efficiency in creating such periods.
In general, higher leverage has nothing to do with higher risk. And we shouldn't blame high leverage for our failure. Those who are unskilled, lazy, unable to neutralise negative emotion carries higher risk. If there is any failure, blame ourselves similarly if we accidentally cut ourselves with sharp knife , blame ourselves, not sharp knife.
I have never gone higher leverage. But if you can maintain risk management, then it could be helpful.
Some things and products, will put you into position, where time becomes your enemy, or someone else, will be able, to dictate the outcome of your trade. You should avoid both, unless you're bloody sure about that which you do.