Lower leverage good for newbies?

[hardworks]

Leverage is the term to increase the margin level, if we have high margin level, then we are very free to use any lot size which may easily ends in stop outs. newbies should use the leverage that is reasonable to suit with the money management plan, by this they are controlled by leverage itself and there is no need to worry about stop outs.

[kaito kid]

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.

But if you have less starting balance, maybe higher laverage will help you. Just be always discipline and using a good money management.

I am using 500:1 with my broker now. It's really helped.

[Hunter]

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

 

Yes that happens a lot to most of us, mainly because over leveraging can affect over trading plans and actions and it puts more pressure to make a winning trade, if that happens over moves won't be that great and in the past i have faced this problem a lot, now i don't do over leveraging trades most of the time.

[budado]

But if you have less starting balance, maybe higher laverage will help you. Just be always discipline and using a good money management.

I am using 500:1 with my broker now. It's really helped.

Low capital + high leverage = MC. And if you have low capital theirs no way you can use good money management. Because the main reason why you are using money management is that you have good amount of capital.

For example the norm in good money management is that you need to expose or use 2% of your capital only. Now if you have minimal capital how can you follow the 2% money management rule?

[Hunter]

But if you have less starting balance, maybe higher laverage will help you. Just be always discipline and using a good money management.

I am using 500:1 with my broker now. It's really helped.

 

In this case one must use very small lot size, because you are using very high leverage. If you use very high leverge and huge lot size then it will be impossible to save the account from margin call if you encouter few losses because you have low investment ot play with. If you don't do that then there will be no money management in that.

[fari]

Here are some broker that do not present leverages above 200:1. For example, deltastock. It is significant that a dealer knows how a selected leverage can have an effect on an account. for newbie’s. a low leverage be supposed to do and nothing more than 50:1 as the CFTC advise.

[budado]

Its always good to use lower leverage and lower lot size. Even if you have plenty of free margin. Because in the long run you really need money to earn money and if you want to do some earning in forex and preservation of capital you can only trade about 2% of your capital per trade. So in short you really need to use smaller leverage and lower lot size to make sure that your free margin is safe.

[brokenblade]

I right now am in the process of building up a good capital to fund my Forex account. The more I practice, the more comfortable I get with trading, then I can increase the leverage I use.

[standart]

low leverage make traders able to manage trade with smallest lot. for newbie, its advantage to make their account last longer including longer time to practice with only small amount of deposit money. high leverage ratio make traders unable to trade with smallest lot. if haven't high amount of deposit, high leverage only cause them get trouble.

[indieover]

We should always advice the newbies not to choose high leverage. There's no point for the to choose high leverage because they aren't yet experienced and they would risk losing big amount fast. So we should emphasize to the newbies that they should not be greedy.

[budado]

They can try it in demo account first. But for me its really not good to use high leverage. Using high leverage is good for scalping strategy and other type of strategy that going to make you earn good amount of money in a short time. But the same strategy can also make you loss money in just matter of few hours also. So in short you really need to step up if you really want to make money and not realy on leverage only.

[zebrut]

that we feared with small capital we can not continue to sustain the number of pips of our ever fallen sharply, because if we let it be finished all our capital. but if we shut down draktis pips which is likely we will be able to close the trade with a high margin call. it's like tossing a coin we have to choose which one we think is right.

[riddick09]

More likely its applicable for long term trading. It will save them from having huge losses or it can be also a way of stop loss but its because of the free margin made because of the chosen low leverage. Still, I just used here high leverage so I'm technically doing only small pips target but they have free margin which if I want to have many trades simultaneously then, I can.

[rizal83]

with low leverage, the newbie can do trade with little risk and is certainly very useful for newbie because they will be more to learn again with actual trades as they learned to use a demo account and will also provide a much better experience for those in the trade

[zebrut]

a newbie who just play real forex trading account is very danjurkan to start trading with low leverage, because with a low reverage they can minimize the losses that they receive so that they do not immediately run out of capital. as a newbie who just do business in real trading account forex losses will certainly not just once but many times due to the lack of psychological control he has.

[rizal83]

is in fact a little leverage will help them and avoid the pressure that is let alone with a small amount of capital they have to trade so that they easily set their trading strtegi and adjust the level of risk they are trading well, therefore the beginner must really know how to manage trades hey well before they start because they will not soon experience a loss

[euro]

I think its advisable that you use low leverage to prevent low loss and prevent margin call. But you will be monitored by the broker if you use high leverage and they will take your trade off for you before you go into a big loss. However, you might have to pay interest for high leverage so stay low on  your leverage but always best to go low as newbie. You just want to trade modestly. Anything in moderation is good. 

[screw_twizz]

Well i do believe if the rookie is going to use a lower power he/she requires a huge capital for you to trade. Considering that a lot of the newcomers buying and selling having lower capital these people may well desire a advantageous power a minimum of 1: 190. in order to start out buying and selling having no more than $10. But you really should competent to control ones perimeter with no looking to more than trade.

[gaban]

low leverage is very good for a newbie. With low leverage, the risk that we face is also low. Leverage is like a boomerang, if we are not careful in using it then our  trading will become a victim . We could use a demo account to test the magnitude of the leverage that we will use in the real account.
 

[CahCuncun]

I think the perception of "low leverage" of each trader is different. I think leverage 1:500 is enough and it's not too big for beginners to start trading in forex. Leverage is Leverage is a double edged sword. And the matter is not how big leverage we use for trading, but how can we maximize leverage which we use for trading. You can use leverage 1:500 too in TenkoFX.

[riki143]

I'm using leverage 1:1,000 in FBS. That's mean i can trading in forex with $5!!! great!!

[forexlover]

Yes, Low leverage is also for newbies. They should also invest small money at starting. Because in strating they have no more experience so there are more chances of loss. 

[Decub]

Because leverage can be quite dangerous when not properly managed, it is always good that the trader make do with lower leverage. A newbie is always that which falls victim to losses and using a high leverage system only means hell for him. In this case, it would be better for him to cut his profit expectations by making use of a lower leverage system to avoid losing hugely.

[gaban]

I think the low leverage is great for beginner traders. Due to the low leverage then we can trade with maximum. But I prefer to use the leverage of 1:1000 instaforex. By using lower leverage then we can avoid ourselves from greed.

[standart]

low leverage enabling traders to trade with low margin which doesn't cost high reduction in capital when they are suffering loss result. however, will be require high amount of capital in order to trade with pretty high lot size. since small capital not enabling them to use high lot size.