Reality and Facts -- Winner Traders only 17% - page 4
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if you win 99 out of 100 wiith leverage 500 you loose all the account for the 1 loss. This is reality.
So, clearly there should be a balance between leverage and success rate and money loss/won for 1 trade.
So, leverage is a factor that can not be ruled out.
*- For instance, if you say 6 winnings out of 9 - let's say using leverage 100 and 30 pips stop loss. The 6 winnings are ok, and then 3 losses each 30 pips equals 90 pips loss with leverage 100 is equal total account loss - final balance = 0.
You giving example what happened with you or your trading style , but winner always thinks different and their math also different
You giving example what happened with you or your trading style , but winner always thinks different and their math also different
Leverage is good, with leverage you can split the money in several accounts, and trade the same volume. Example: 100000, you can send only 1000 to your broker and make the same trade volume as 100000, that way you keep your equity safe in several places. Also, for example, you can have a total capital of 1000 and leverage 1000x and trade only 10% of your total equity, and make 100 USD trades, this way you can keep 900 safe somewhere else, if your stop fails you have more security.
Leverage is not your money it's broker money they can run with you in profit but they kicks you in loss
When a trader know they got 1000 Balance and trading like they got 10,000 is this a trading style that's why 90% always loose
Without leverage you need around 1700 USD to start .01 lot n EURUSD you thinks it can beat trader easily?
I don't think leverage is suicide, is the same concept of getting loans from the bank. Some people will end up broke, others can use it very well, there are so many things you can do using leverage. 1000x leverage is not bad
a- you can use it to send less money to the broker, keeping it safe, and still trade the same volume, of course the stop will decrease but there are strategies with tight stoploss
b- you can use to trade risky capital. If you make 1000 from 10000 with low risk. Then you can trade these 1000 with max leverage, is you lose it, it will not decrease your original capital
c- you can use it with martingale strategies, recovering losses using less capital
d- you can use it to learn trading, using small capital
...
I don't think leverage is suicide, is the same concept of getting loans from the bank. Some people will end up broke, others can use it very well, there are so many things you can do using leverage. 1000x leverage is not bad
a- you can use it to send less money to the broker, keeping it safe, and still trade the same volume, of course the stop will decrease but there are strategies with tight stoploss
b- you can use to trade risky capital. If you make 1000 from 10000 with low risk. Then you can trade these 1000 with max leverage, is you lose it, it will not decrease your original capital
c- you can use it with martingale strategies, recovering losses using less capital
d- you can use it to learn trading, using small capital
...
It's a problem when people who don't understand what they say write in forums. What Deevog wrote in relation to leverage calculation, is totally wrong.
1000x leverage means you have 10 pips to wipe your account. Which means, if you open buy EURUSD at 1.1715 and the price moved to 1.1705 - you lost all your account.
While this is good for gamblers, casino style, which is fine and legal. But, casino is not trading.
It's a problem when people who don't understand what they say write in forums. What Deevog wrote in relation to leverage calculation, is totally wrong.
1000x leverage means you have 10 pips to wipe your account. Which means, if you open buy EURUSD at 1.1715 and the price moved to 1.1705 - you lost all your account.
While this is good for gamblers, casino style, which is fine and legal. But, casino is not trading.
Who said casino is not compatible with trading? They are different but not incompatible, you can use casino mentality to make money in trading. Pascal for example, great mathematician, he developed a money management system to lose the less money possible in dice games, it can be perfectly used in trading. Money management is 100% related to leverage, and it's a very complex topic, there are infinite ways to use it. You talk about leverage considering all the money that a person has, but on practice, people leverage only a fraction of the total money. OK using 1000x leverage may lost all account, but you can have several accounts, with less risk, that's not a big problem.
It's the same as driving 1000 km/h in the city.
but on lot size used by trader who still lack understanding :
patience, caution, wisdom, not greedy, and so on, -- that is about trading psychology.
be sure first learn and practice continuously for 3 - 5 years in demo accounts in the right way.
It is necessary to know more definitely,
whether we can work in forex or not.
Because forex is not always suitable for everyone.
Keep the spirit and
diligent practice in the right way.
Good luck :)
Regarding leverage:
If you know what you doing, it's not dangerous at all.
i've create simple calculation to differentiate them.
Full margin lot = once enter this lot, your margin percentage will be at 101% (assuming no other order previously running).
I use leverage a lot...... but my position size per trade is small.
These matters can be studied and debated forever, each of us is ultimately responsible for our losses.