Yes, to choose high leverage, you must have a clear strategy and a well-defined plan and also use leverage with more caution.
I never change the size of the leverage. After all, there are no perfect trading strategies with 100% correct entries, so we must always control our risks no matter how profitable the entry into the market seems to us.
In highly volatile markets, lowering leverage can help reduce risk, while increasing it during more stable periods may allow for greater potential gains. However, it's important to use leverage cautiously, as higher leverage amplifies both profits and losses.
Also, lower leverage helps reduce stress and maintain emotional stability, since market movements will not affect the deposit as much.
Leverage can amplify both gains and losses, so it’s important to use it cautiously. Personally, I prefer using lower leverage to minimize risk, especially when starting out. Some traders adjust leverage based on confidence in their trade, but it’s crucial to stick to your risk management rules regardless. For me, keeping leverage moderate helps avoid unnecessary stress and large losses.
Since you carefully assess your risk tolerance before using leverage, how do you typically determine your position size? Do you use any specific formulas or tools to ensure your risk stays within acceptable limits, especially when trading volatile pairs or markets?