Lower leverage good for newbies?

[radex78]

Trading using low leverage does have a small risk. leverage like a double-edged sword, on one hand is very profitable, but on the other hand is very detrimental. therefore, if we do not have good self-control so it is better to trade using a low leverage

Indeed leverage like as double edge of swords, as trader edge to use leverage wisely and don't being greedy because desired to making huge profit at short time, as trader need pay attention with the risk that involved in trading, although might trader use high leverage they must control their decision with risk management plan

[uncle gober]

There are many types of leverage system. And its varies from Broker to Broker. Some trader want to trade with high lot volume with low deposit so they take big leverage. But i think that was not a good idea for long sustain in Forex marker. 1:1500 is the ideal leverage from my side.

[skyrock]

For the newbie traders I think that small leverage is for them when your leverage seems to be too high then dont expect anything than to trade because the more that you trade the better your chance to get success and the higher the leverage the higher your lossing chance if you are a newbie trader

[tray22]

Lower leverage is very good for the newbie traders they dont need to go for higher leverage because this may cause them their trading account so for this reason traders must ensure that they try and learn and have something to memorize before they trade

[pepy]

Lower leverage is very good for the newbie traders they dont need to go for higher leverage because this may cause them their trading account so for this reason traders must ensure that they try and learn and have something to memorize before they trade

This may cause them their trading account? Can you elaborate that? Lower leverage means you must spend more for one lot or micro or mini lot. So imagine you're a trader who still don't know much about forex, has small amount of capital and cannot make much profit, which one do you preder smaller leverage or bigger leverage?

[skyrock]

In forex trading lower leverage is sometime not really bad but what I have to say is that leverage is leverage be it lower or higher traders who are new to this forex game need to try and setup small leverage for themself as this could help them succeed.

Forex is not a game you need to ensure that you have good knowledge and put more effort towards your learning process

[tray22]

Yes it is the lower leverag that is good for the newbie trader if you are a newbie trader dont borrow the fund too high rather I will advice you to borrow lower amount by doing this more you are keeping your trade in a safety condition as the case maybe

[myregister]

Yes it is the lower leverag that is good for the newbie trader if you are a newbie trader dont borrow the fund too high rather I will advice you to borrow lower amount by doing this more you are keeping your trade in a safety condition as the case maybe

Huh, you know that with high leverage for example :200 you can afford bigger lot size with smaller price. So it is benefical if you have higher leverage especially as newbie, but you shouldn't take it for granted, some people prefer to overleveraging their account thus only let them lose in very fast way.

[radex78]

Use huge leverage like as use double edge of swords, on one side giving easiness to open trades, but on other side will harmful account if leading trader being greedy, using high leverage is dangerous for trader that having high temper and having tendencies to become greedy

[myregister]

The key is are you able to manage the risk? If you can then use high i think more than 1:50 considered to be high leverage for people. If you don't then use lower leverage but let me tell you tht use lower leverge means you must sacrifice more money. 1:100 need just half of what traders with 1:50,

[novarisa]

The key is are you able to manage the risk? If you can then use high i think more than 1:50 considered to be high leverage for people. If you don't then use lower leverage but let me tell you tht use lower leverge means you must sacrifice more money. 1:100 need just half of what traders with 1:50,

That's better because you can manage the risks really well with lower leverage that will prevent you to using a higher lot volume and facing less risks. We need to consider the risks when it comes to choosing leverage.

[myregister]

I said it once again without higher leverage you cannot trade just like what you do today, imagine if we don't have leverage or our leverage is just as high as 1:50 we need to spend twice for the lot size we choose right now, and this will create a barrier to foreign exchange and will discourage people to invest here which is bad thing.

[bearhugs]

To my opinion it is not the leverage that is important. It is the risk you take in a trade and the money management abilities.

[radex78]

Using leverage in forex trading might as trader also need understand with their capital, if still often tempted by market movement and leading them to greedy hence low leverage is safe than high leverage because low leverage will prevent from greedy in trading

[pepy]

I said it once again without higher leverage you cannot trade just like what you do today, imagine if we don't have leverage or our leverage is just as high as 1:50 we need to spend twice for the lot size we choose right now, and this will create a barrier to foreign exchange and will discourage people to invest here which is bad thing.

True, i agree with you many traders don't know about this thing and to be honest this is one the worst thing that could happen for someone who prefer low leverage, and for newbie most of them have small capital to start, and want to trade with lower leverage means they must spend more, LOL imagine newbie with small capital with small leverage and having less experience, if they can survive for one time then it would be like a miracle.

[myregister]

Well let me clearing up my stance here that lower leverage won't be useful for newbie, most of newcomers come with small amount of money in their account if not few hundred dollars then it would be less than that. Lower leverage also means when affords bigger lot size, a trader should spend bigger money in their account and it is clear that it is not feasible for almost all newbies

[radex78]

Yes small capital need choose high leverage to boosting opportunity, if start with huge capital indeed will safe use low leverage because can prevent from greediness in trading, which to open 1 lot size will required more margin requirement if use low leverage and if get margin call account usually still left money in account while high leverage might possible if MC only left small money

[myregister]

This is why i said it is important because many of traders here don't understand that use lower leverage means you cannot trade with smaller bucks, this is what makes leverage so important, and maybe they don't know what is leverage for and just choose the random standard leverage. Lower leverage maybe good but for big investors/traders not for small or medium scaled traders.

[pepy]

This is why i said it is important because many of traders here don't understand that use lower leverage means you cannot trade with smaller bucks, this is what makes leverage so important, and maybe they don't know what is leverage for and just choose the random standard leverage. Lower leverage maybe good but for big investors/traders not for small or medium scaled traders.

Pretty nice, i also agree with that leverage which is low is not useful for newbie, even some experienced traders will agree. At least they prefer 1:100 as the standard leverage or the highest. In some country foreign exchange leverage is lower like in US, as far as i know it is 1:50 and some people already complained but with no avail.

[gaban]

low leverage could provide its own advantages for traders who have a bad psychology, because they will be protected from greed trading. therefore, we should be able to minimize greed by trying to get the right leverage

[pepy]

low leverage could provide its own advantages for traders who have a bad psychology, because they will be protected from greed trading. therefore, we should be able to minimize greed by trying to get the right leverage

Yes, but do you have large amount of capital? Are you just simply trade because you want? In my own opinion, lower leverage is not good for newcomers it is good for someone who have a lot of capital in their hands. If you are not someone who have capital then you should think about that twice before applying for lower leverage such as 1:50 or 1:25.

[bearhugs]

It depend on every traders own capital. the best leverage to use in trading depends on your understanding of leverage.

[radex78]

Usually newbie start with small capital in their trades, and use low leverage is not suitable for small capital, and use high leverage will giving more chances to open trades as long as trader they can manage their funds with wisely, don't let use high leverage then greedy, but will safe if always use lowest lot size first to prepare is the risk before imagine easy profit

[aliforex]

Low leverage is helpful, but make use that we have enough money to start trading using that leverage. As a trader we also must try to improve skills and understand market movement

[novarisa]

Low leverage is helpful, but make use that we have enough money to start trading using that leverage. As a trader we also must try to improve skills and understand market movement

 

Agree, because on low leverage, it need enough amount of money to handle the risks really well on low leverage.