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Leverage Isn’T A Bad Thing


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“The point [is] that a trader has to master their psychology to allow him or her to take many small losses, trade through drawdowns, and let winners run beyond expectations.” - Markham Gross

Some people preach against leverage because of their own faults. They use trading methodologies that ultimately make average losses that are bigger than average profits, while they should be doing the opposite. While we may find it difficult at first (the same was true of me), controlling losses and making trading decisions become very easy when they become our nature.

In order to know what leverage is in trading, plus the advantages in using it, please search for the information yourself. However, experienced traders should understand what leverage is. Leverage isn’t a bad thing- it’s irrational use of leverage that’s a bad thing.

So I recommend the use of leverage. When leverage is used with strict money management, a heartwarming balance is then found between decent profits and risk control. For example, I use a leverage of 1:100. However, I risk only 0.25% per trades: which means that I use only 0.01 lots for a $2000-account, with a stop of 50 pips per trade. With an account that’s less than $2000, I’ll recommend conversion to cents, for greater safety.

The greatest achievement in trading is controlling the treacherous statistics called drawdowns, not making profits, for profits are easy to make but difficult to retain. For example, if you made a profit of 10% in this month, you could start experiencing losses in the first and/or the second week of the next month (as it’s true of any trading approach you might adopt). A proof of your proficiency then lies in your ability to lose as little money as possible, going down by, say, 2% - 4% maximum. With this, it’s easier for you to bounce back when the strategy enters another encouraging winning streak. However, a bad trader would lose between 10% - 40% or even more, during such transitory losing streak. What’s the benefit of gaining 20% this month and losing 55% next month?

It’s a good thing to help our friends and well-wishers to be the best they can be in their trading careers – hence my articles. Directly or indirectly, we benefit when our friends and acquaintances when they become successful. If your friend doesn’t become a king, you won’t become a friend of a king.

The quote below ends this piece:

“The problem is adjusting expectations so that your psyche survives long enough for you to be around when the big winner appears. The majority of traders quit simply because expectations and reality are out of alignment.” – Chris Tate

Source: www.tallinex.com

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Leverage is considered as an important financial tool that allows an investor to grow his market exposure to a level that exceeds the initial investment. in my trading career, from my first day of trading, I at all times like to trade in a high leverage for making profit instantly. that’s why, I have selected Mxtrade trading broker due to getting 1:400 leverage for all time.

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I believe it’s very useful facility for Forex traders. But, the requirement is, good trading skilled. Otherwise, we’ll suffer quick losses because of using high trading leverage. Actually, I am depend on high trading leverage for my live trading account of TradingBanks, I use 1:400 trading leverage service of this broker. In my trading, when I get clear confirmation of market then, I open my trade with high trading lots. In addition, I get this higher trading space because of using high trading leverage of this broker. So, definitely it’s a great opportunity for me as a retail trader.

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  • TGF Premium

leverage in Forex allows you to earn much more money per trade. However, the flip side of this is that you can lose a lot more per trade. So it is VERY important that you know what you’re doing before you trade real money. Be sure to make a trading and money management plan to protect yourself from the bad side of leverage.

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I think the leverage in forex trading is very important, with the leverage will make us able to trade using little capital, so that we will be able to trade with the capital we have. now I prefer to trade with leverage 1: 1000

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Forget about leverage been bad, it’s the best thing that happened. If it was not for leverage, I don’t think small traders like me would have been able to work, so that’s why leverage is so crucial. I always enjoy when there is high leverage on offer by the broker and currently working with Nova FX, I get the highest possible up to 1:1000 while the minimum is just 100 dollars, so it’s very good for me to work with them!

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leverage is very profitable for traders because of the leverage it will make us able to trade using small capital. With the help leverage we trading using small capital we can trade with a large volume if the leverage is high and therefore, we need to use leverage with either

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  • 3 weeks later...

I have been seeing according to my trading experience that we the traders like to trade in a high leverage for making profit instantly especially the traders who are newcomers. In my trading career, for avoiding loss, I at all times like to trade in a small leverage, even though, I am getting 1:400 high leverage from my trading broker MxTrade. But, in my demo trading, I took high leverage to see the performance how it works. Actually, leverage is an important financial tool that allows an investor to grow his market exposure to a level which exceeds the initial investment.

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Never, leverage is very useful facility for traders. But, if you have huge trading balance then, you don’t need to use high trading leverage. In this case, I use high leverage because of my small trading investment. I use 1:400 trading leverage in my live account. And, when I see fresh entry then I use the advantage of high trading leverage. ECN broker TradingBanks provides me this high trading leverage facility. By the way, I don’t depend on high leverage but I rely on my own trading knowledge and experience. But, I like to use high trading leverage.

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It’s the joke of century to think leverage is bad thing, I mean do we even know what leverage does? If we take out leverage then people with 100-200 dollars investment won’t be able to survive the market even for a second, it is also why Forex has become so popular and now if anyone thinks that all this is do able without leverage then it’s one of the silliest thing I have ever heard. I am working with OctaFX broker where they have outstanding facilities which include giant leverage up to 1.500 and I use the highest one because that is what leads to positive results and without this I won’t be so comfortable since I am not a big investor.

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leverage is not a bad thing, even for me it was very favorable leverage with leverage because it will allow us to trade with the maximum, and therefore we need to use leverage so well that would allow us to trade with the maximum. With the leverage it will allow us to trade with small capital

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Generally, for making profit instantly, we the traders like to trade in a high leverage especially the newcomers. In my trading career, I have chosen MXTrade trading broker due to 1:400 high leverage. by means of this high leverage, I am able to trade in a high lot in spite of small balance. actually, leverage is an important financial tool to choose a trading broker.

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Leverage is very important for traders to leverage because it will allow us to succeed in this forex trading. We can use a demo account to choose the leverage that is suitable for our trade, that will allow us to trade with the maximum.












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  • 1 month later...
  • TGF Premium

Forex trading markets offer the lure of high leverage and potentially large gains, but leverage is always a double-edged sword and irresponsible use can lead to heavy losses. Recent changes in forex regulations have aimed to rein in market excesses. Regardless of maximum leverage regulations, however, traders should always manage individual use of margin responsibly and well within their capital limitations

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  • 2 weeks later...

In order to my trading experience, I think, leverage is an important financial tool that allows an investor to grow his market exposure to a level which exceeds the initial investment. In my trading career, I at all times like to trade in a small leverage for avoiding risk. Even though, I am getting 1:400 leverage from my trading platform MXTrade. But, in my demo trading I took high leverage to see the performance how it works.

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Leverage can never ever be bad thing, I believe it is one of the biggest benefits as far trading in concern and this is what makes it so good. I believe Stock trading is pretty much the without the leverage version, so we all know how tough it is which is why Forex is so highly considered by all. I trade with OctaFX broker where I get massive leverage up to 1.500 which is seriously useful given the low investment I have, it is seriously handy and allows me to be successful even with low level of deposit, as I said and this also is the way the risk stays down and allows me to be successful without any difficulty at all.

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  • 1 month later...

Absolutely not. In this stock market place, leverage is considered as an important financial factor which an investor should consider when choosing a broker. Practically, it allows an investor to grow his market exposure to a level that exceeds the initial investment.

in my trading career, from my first day of trading I have been using slighter leverage for avoiding risk , even though I have 1:400 leverage that always make sure my trading broker Trade12. But, in my demo trading I took high leverage to see the performance how it works.

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  • 1 month later...

I couldn’t trade flexibly in my live trading account if I did not use high trading leverage. So, trading leverage is very useful facility for me. By the way, which traders depend on only high leverage they are not on the right way, I use 1:400 leverage from TradingBanks and I opened my live account after confirming my good trading skills.

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  • 4 weeks later...

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