Risk management is something no trader should neglect. Maintaining that balance between risk and comfort can be difficult but it is important. There are some ways every trader can manage risk: 1) Proper understanding of the market 2)Constant working on a trading plan 3)Understanding leverage 4)Setting risk reward ratio 5)Staying updated with the news 6)Using stop loss, limit orders 7)Testing on demos
I don’t like leverage, it is too risky. A higher leverage increases the chance of losing. I simply don’t take such chances.
If you don’t use some leverage, how will you earn profits? I made some really good profits with IG and Fxview after using 1:200 and 1:400 leverage respectively. Got about 4 to 5% returns on USDJPY, GBPUSD. I don’t know how you’re making any money without leverage, I can’t even afford to not use it.
Huh? It is like people don't like a sharp knife. it is too risky. A very sharp knife increases the chance of serious injury. High leverage and a sharp knife are harmless provided we use them properly.
I have always used high leverage brokers like IC markets and the results have been nice. I strictly follow 3:1 reward:risk ratio. Only when I am sure of profits do I go ahead with the trade, and rarely deviate from my trading plan. In fact because of my profits from using leverage I have been able to earn decently from trading, it’s my sole source of income and I am living comfortably.
If you know how to manage capital and calculate risks, then a large leverage will not be a big problem, but will only help you make good money
That’s quite inspirational. I too have been planning to add more high leverage brokers to my portfolio besides the ones I am currently using-IG, Fxview. Have my eyes set on Forex.com, I’m open to suggestions too. Extremely keen on leaving my job.
I'm a beginner in trading, been trading for two months with lower leverage and wanted to move to higher leverage (1:500), is it too early and risky to start trading with higher leverage?
When trading with leverage, a trader should first of all think about maintaining a balance between risk and comfort.
Professional traders mostly use high leverage because of their trading experience and using high leverage in trade brings in higher profit. Beginners and traders with mediate forex experience prefer using lower leverage to minimize the chances of higher loss and risk involved.