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As a rule, when a trader makes a loss, he looks for something to blame the loss on. Sometimes he can say that the market went against him, or he can say that it was the leverage or overtrading that caused it. He never wants to take responsibility for a bad strategy. Using a big lot size with highleverage is a bad strategy.
Well said. From my opinion leverage has nothing to do with our loss if we do not allow our emotions to play. If higher leverage make to go for higher lot size means then going with greed will not get good results. On well trained emotion control has nothing to do for loss with higher leverageQuote:
Originally Posted by puri
many traders are using high leverage and I think that if they use high leverage, but if they know how to manage your account and useappropriate size lots with an investment will reduce risk
i think high leverage lead to loss if your capital not big yes then your money will dis appear but if you have good capital you can make any leverage you want.but leverage very important for small capital because if you have 100 dollar you can trade with double this money and double your earning so leverage good if you use it wisely
High leverage in the platform does not mean you are exposed to loss. Now this depends on the size of points that you chose in the trading platform. Now is the size of the dots which reflect the size of the loss. It is not high leverage. As insurance to be Rssd account by the amount of points set by the.
Yes, higher leverage leads to higher loss.
High leverage lead you to open a higher position and taking high risk.
that's right, if you want to trade in the forex business, the best way to make lots of money is to let it compound your winnings and be patient with your trades. Don't overtrade and find the obvious movements. and dont use high leverages
Well, you are right, it is not leverage that is to blame for high losses but the strategy. Leverage does not really have any role to play in your trades but to allow you open trades with big lots. If you open a profitabe trade wth big loss you will get big profits and if you open a bad trade with big lots you will get big losses.
You are right mate as leverage is not the killer and it is higher volumes and higher lots and trading with using stop loss that kills traders and they loose huge amounts. So always trade with proper money management.
It is not high leverage that leads to quick margin calls but it is trading in high lot sizes that leads to quick margin calls and to avoid the same a trader needs to make sure he trades in smaller lot sizes and take less risks .