Does the trading style determine the leverage that should be used?
OR
Does the leverage one is comfortable with determine the trading style?
OR
Does the leverage one is comfortable with determine the trading style?
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QuoteDislikedTrue Leverage = Position Size / Account Size = 60,000 / 10,000 = 6:1
This level of leverage is too high if you lack experience. Better to reduce your percent risk from 2% down to 1%. That will reduce the leverage to 3:1 in this case.
Quoting RizkInvestmentsDislikedDoes the trading style determine the leverage that should be used?
OR
Does the leverage one is comfortable with determine the trading style?Ignored
Quoting PeterFMDislikedAccount leverage: Go for the highest leverage you can, irrespective of the size of your account. This means you can use micro-lots, giving you more flexibility in stop placement, and/or postion size, and stay within the 1% maximum risk that we are always advised to use. This advice is offered by at least two of the most respected (by me anyway) guys on the forum. One of them even states that you should stick with micros up to an account size of $25k - $30k.
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Quoting philmcgrewDislikedPlease explain why going for the highest leverage you can find is important to a trader. I never understood why a non-broker would advise someone to seek high leverage.Ignored
Quoting diallistDislikedBecause it yields the lowest margin requirements. There is a profitable hedging strategy that I use, that relies on 400:1 leverage to get the low margin requirements, but the true leverage used in the hedge strategy is only 2:1.Ignored
Quoting artem1985ilDislikedIn my experience, it is better to use high leverage (at least 1:100) when you are starting out with a mini account. You don't have much to lose, but higher leverage will accelerate your profits. Once you make some decent money, tone it down a little if you don't want to risk too much.Ignored
Quoting philmcgrewDislikedIf you risk up to 5% of your account you leave 95% of your money unused. Even if you have several positions on most of your account remains available. Margin really shouldn't be a concern to someone who employs some form of money management.Ignored
Quoting mohsen57Dislikedhi james
Would you please tell me a little about your hedging strategy, becouse i'm very interested in hedging so i would like to know about your profitable method. thanks in advance.Ignored
Quoting diallistDislikedFor normal trading I agree with you. But for the hedge strategy I'm using, it simply would not work with higher margin requirements. The strategy requires 400:1.Ignored
Quoting philmcgrewDislikedThat's cool. I respect that you have a unique strategy that employs have leverage and the fact that you have successfully tamed fire.
For the average bear starting out in Forex, the focus on excess leverage is highly overrated.Ignored