Hmm, you have got strong point my friend. We shouldn't take big leverages cause it is very risky for our capital. Capital is like our heart if it collapse we will gonna die.
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Overflowing leverage will always eat your equipoise. It should be utilized when you are reassert roughly the movement. I opine it will be arduous to hazard style in forex. With dominating investment you should not line in the volatile point it will hit your earnings label straightaway. Now you can strike from this facts and resolve whether to use or not.
No, high leverage didn't mean high risk because the risk in forex is depending on lot size too so it's not only leverage.
Leverage is facility from traders to trade with small amount of funds and it will allow me to maximize profits if there is
good money management.
I will always use highest leverage available from my brokers' services. In fact, I still cant find bad effect of high leverage but about that we can trade with higher lots with lower capital. I think, that bad side can be covered by our dicipline to stick on our rules. if we have good capital-risk management, and strong willing and good track record to always following that, high leverage will not able to blow our account. thats just my opinion based on my own experiences.
High leverage is not good. but it also depend on your own business plan strategy. if you have a good plan and good amount of capital then you can use high leverage. in this case high leverage is can be good and profitable to you. other ways high leverage for normal traders is not good.
We can make better trade in any laverage if we understand the risk involve, In forex however, such requirements include: learning the basics, the types of analysis technical and fundamental , control of emotions like greed, fear, learning to be patient, among others.
It should be used when you are confirm about the trend. I think it will be difficult to predict trend in Forex. With high leverage you should not trade in the volatile period it will hit your margin call immediately. do we can open position with good or not and how do we make analysis, so if we can make some profit with consistent.
The beginners in forex preferring to levarege high as 1:1000, but I think it's great levarege very bad for a beginner if any beginner to use such a small levarege 1:100 or 1:50 and he will be filtered out in the open position too much because it was at the limit