yogeshwartyagi Posted November 27, 2011 Share Posted November 27, 2011 In my view it would keep newbies safe if they use lower leverage so they can wait for their price to return, and they account will usually not set to 0 due to margin call and closure of trades by broker. What you think should newbies use low leverage? Quote Link to comment Share on other sites More sharing options...
riddick09 Posted November 29, 2011 Share Posted November 29, 2011 Well some traders suggest to have 1:500 or 1:1000 but in other forex broker they dont have 1:1000 only in instaforex. FBS only have 1:500. It also said that lower leverage that is long term trading. Well i still want to try it first the difference of it. Quote Link to comment Share on other sites More sharing options...
budado Posted December 7, 2011 Share Posted December 7, 2011 Well some traders suggest to have 1:500 or 1:1000 but in other forex broker they dont have 1:1000 only in instaforex. FBS only have 1:500. It also said that lower leverage that is long term trading. Well i still want to try it first the difference of it. I suggest you do that. The simplest way to learn is to try it. I also do that and I always takes note. That the most important thing in forex trading to right notes. Because in this way we all know what is the best strategy for us. Theirs so many way to earn in the forex but the best way is one that we discover. Quote Link to comment Share on other sites More sharing options...
bloger90 Posted December 7, 2011 Share Posted December 7, 2011 Well i think if a newbie is going to use a lower leverage he/she will need a big capital to trade. Since most of the newbies trading with lower capital they probably will need a favorable leverage at least 1:200 . so that they can start trading with as small as $10. But you should able to control your margin without trying to over trade Quote Link to comment Share on other sites More sharing options...
riddick09 Posted December 10, 2011 Share Posted December 10, 2011 I suggest you do that. The simplest way to learn is to try it. I also do that and I always takes note. That the most important thing in forex trading to right notes. Because in this way we all know what is the best strategy for us. Theirs so many way to earn in the forex but the best way is one that we discover. Seems like that what we found strategy which will be convenient and which we are getting profit or suitable to our trading. Yes, practice makes good learning and will have the result that might happen when we trade in the real account. So for me, im always using 1:500 leverage and just this month try the 1:1000 leverage in other forex broker which i can use it or they have such leverage. Quote Link to comment Share on other sites More sharing options...
budado Posted January 31, 2012 Share Posted January 31, 2012 Seems like that what we found strategy which will be convenient and which we are getting profit or suitable to our trading. Yes, practice makes good learning and will have the result that might happen when we trade in the real account. So for me, im always using 1:500 leverage and just this month try the 1:1000 leverage in other forex broker which i can use it or they have such leverage. Anyway what site does have 1:500 leverage? Or do you mean margin? right now I'm looking for a broker that has lower leverage like 1:500 and I also want to trade using 1:10 margin. That means I need to have few dollars to start trading and yet I can tolerate volatility. But of course the earnings is also low. Quote Link to comment Share on other sites More sharing options...
flybiz08 Posted March 28, 2012 Share Posted March 28, 2012 There are brokers that do not offer leverages above 200:1. For instance, deltastock. It is important that a trader knows how a chosen leverage can affect an account. In the case of newbies. a low leverage should do and nothing more than 50:1 as the CFTC recommends. Quote Link to comment Share on other sites More sharing options...
Nagilover Posted March 29, 2012 Share Posted March 29, 2012 I ever trade in 1:1 since I am 12-13 years old.It is making massive money in the short time but It is very massive risk too.But in 70-80s they trade in 1:1 only don'ts ame as 21st centuries as traders trade in 500:1 or 1000:1 Quote Link to comment Share on other sites More sharing options...
rexway Posted April 4, 2012 Share Posted April 4, 2012 Am trading with 1:1 leverag too and my account balance is increasing with profit everyday and even my loos dont couse me much pain because I normally make use of stoploos which do help me if any loos signal occure and I wil also advice the Newbie to used this same leverge and not to go for the higher once. Quote Link to comment Share on other sites More sharing options...
monyitomon Posted April 4, 2012 Share Posted April 4, 2012 Yes, that's much more preferable with newbies rather than having a high leverage then lose their trades in just a seconds. So, usually a newbie has small deposit so lower leverage is much better to experience trading. Quote Link to comment Share on other sites More sharing options...
rexway Posted April 11, 2012 Share Posted April 11, 2012 lower leverage also lower the risk for us to loos huge in forex the only place which a trader should welcome large size of leverage is only if the trader is a professional trader then he can go ahead and leverage high Quote Link to comment Share on other sites More sharing options...
budado Posted April 15, 2012 Share Posted April 15, 2012 Well some traders suggest to have 1:500 or 1:1000 but in other forex broker they dont have 1:1000 only in instaforex. FBS only have 1:500. It also said that lower leverage that is long term trading. Well i still want to try it first the difference of it. I'm doing 1:100 right now and I feel good. The reason I feel good is that although I only earn few cents per trade I can survive market volatility. Now the pips can move 200 pips negative and I can still hold it. if I use 1:1000 leverage I'm sure I already get MC. But now I still have like 400% free leverage. But I'm still studying the long run effect. Because I want to trade long term and the swap interest is my main concern right now. Quote Link to comment Share on other sites More sharing options...
riddick09 Posted April 16, 2012 Share Posted April 16, 2012 Yeah, that will the advantage. But does it mean that even we have a long margin call if we have 200 pips negative then it will be difficult to say that it will be easy to get up which is more than 200 pips positive. As we might also think of possibility that it will be even have more negative pips and then difficult to recover. I still in the 1:1000 and just using 0.05 lot size now. Quote Link to comment Share on other sites More sharing options...
charlly007 Posted April 25, 2012 Share Posted April 25, 2012 I still have a long way to go on this forex trading issue.i am yet to fully understand what a leverage is though i have come across it when i was filling the liteforex account creation form.i think the 1:200 is the mosyt common leverage that people are using.Since it enables low investment such as $10,i am okay with it. Quote Link to comment Share on other sites More sharing options...
antthenait Posted May 1, 2012 Share Posted May 1, 2012 It's 100% true that newcomer should want to make big profit with a short time. So usually they just made bid invest and lose all by take useless items. Actually they never have experience of any market so they always unable to predict any market. So they need to use some lower value and after get profit they can move. Quote Link to comment Share on other sites More sharing options...
Sixteen Posted May 3, 2012 Share Posted May 3, 2012 An advise is for the newbies to invest high capitals and go for lower leverages as it will help not to make big losees if we are loosing. Going for higher leverages mean we are risking our money and the end might not be profitable as we got to loose all we have..we have to be wise. Quote Link to comment Share on other sites More sharing options...
brokenblade Posted May 8, 2012 Share Posted May 8, 2012 I believe that it is better for newbies to use lower leverage. It is not good to start off using the maximum leverage of the broker of your choice. As you gain experience as a trader, then you can increase your leverage little by little. Even as an experienced trader, it is better for you to keep your leverage in proportion to how much money you can afford to lose. Quote Link to comment Share on other sites More sharing options...
budado Posted May 9, 2012 Share Posted May 9, 2012 Yeah, that will the advantage. But does it mean that even we have a long margin call if we have 200 pips negative then it will be difficult to say that it will be easy to get up which is more than 200 pips positive. As we might also think of possibility that it will be even have more negative pips and then difficult to recover. I still in the 1:1000 and just using 0.05 lot size now. If you use 1:1000 and 1:100 and use 0.05 lot size what will be difference? Actually none. The only difference is when you add more lots position. Because what will happen is that you can pen ten times more using 1:1000 than 1:100 in the same amount. and that means your free margin is divided more if you have 1:1000 compare to 1:100 leverage. Quote Link to comment Share on other sites More sharing options...
Tariq777 Posted July 8, 2012 Share Posted July 8, 2012 yes you are right, newbies should keep their leverage levels lower as possible. The high leverage are only for professionals who know how to control the risk involved in it Quote Link to comment Share on other sites More sharing options...
budado Posted July 9, 2012 Share Posted July 9, 2012 I notice that my account loss about 400 pips already but I'm happy that its still holding with much more fre marging to spare as I'm using low leverage. My plan is long term so I'm hoping that a one week volatility will not going to make me loss money. But same time I'm of course worried as I don't have infinite funds to sustain my position if the price of eur/usd is keep on falling. Quote Link to comment Share on other sites More sharing options...
indieover Posted July 11, 2012 Share Posted July 11, 2012 that is just part of trading. just try to keep on trading . iam sure you are going to recover your losses. i will start trading also using a demo account. but in demo account i can use whatever leverage i want but it does not matter what leverage i will use actually. Quote Link to comment Share on other sites More sharing options...
budado Posted July 20, 2012 Share Posted July 20, 2012 It does matter as your leverage will going to be your profit tool or your losing tool. In forex trading we must understand the relationship between all components in forex trading. Like the connection of leverage to to the lot size and the lot size to the type of account you have and so on. In forex trading high leverage means you can maximize the capital you have by risking more. Quote Link to comment Share on other sites More sharing options...
indieover Posted August 9, 2012 Share Posted August 9, 2012 You can maximize you earning only when you are good trader. I don't use high leverage up to now. Because when I use high leverage that i tend to lose but when I use low leverage I tend to make a right predictions Quote Link to comment Share on other sites More sharing options...
rexway Posted August 10, 2012 Share Posted August 10, 2012 Lower leverage is the major key to succees in forex trading because high leverage means high risk for me I use 50:1 leverage and m doing quit well with it so all I can say now is cutdown your leverage to avoid more lose and minimize your risk. Quote Link to comment Share on other sites More sharing options...
indieover Posted August 12, 2012 Share Posted August 12, 2012 Although I am enjoying using small leverage. Since I don't lose a big amount. But I don't like the fact that I am not able to earn well also because of the low leverage. But it's just important that I would stick with the low leverage since I am still learning. Quote Link to comment Share on other sites More sharing options...
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