How often do you use leverage?

Discussion in 'Trading' started by a529612, Nov 13, 2006.

  1. How often do you use max or near max leverage for that gung-ho trade when you feel that the odds are really in your favor?
  2. never
  3. What kind of leverage and type of odds are are you talking about?

  4. lescor


    How often do I use leverage? Every minute of every trading day. How often do I use maximum leverage on one position? Never. Not even remotely close.
  5. NEVER
  6. craneman


    I use some margin quite regularly for day trades that are closed by end of day, but would I ever use it to load up on a "single gung-ho trade' ?? absolutely not ever.

    This is not Las Vegas. The most I would ever risk on a single trade is 4-5%, and even then 99% of trades I risk 2% max. At least in Vegas you can get free drinks while you watch your money go down the shitter.

    Why would you ever put yourself in a position where 1 trade could put you out of business? There will always be more opportunities. By never putting more than 2% of capital at risk on a single trade you could sustain a string of say 10 losses in a row and still be in the game.

    My Port is up 2.7% today and the overall market was not real strong and I never risked more than 2% on any one trade.

  7. faure


    This is a bit of deja-vu topic isn't it? There was a thread on this subject a few days back.

    And yes I think you need to step on the gas when you perceive better odds - nothing close to risking it all, but at least a couple times more than the usuall.

    I vary my trades from as little as 1 lot to 100 lots depending on how well I'm trading and how much opportunity there is.
  8. Always
  9. Never Always.
  10. Drew07


    I've noticed in the journals forum that a lot of you prop guys trade with a million buying power. How much of that is actually at risk throughout the day?
    #10     Nov 13, 2006