Is high leverage really bad for traders? -
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thread: Is high leverage really bad for traders?

  1. #21
    Member Rentt's Avatar
    32
    Let me see if I understand this properly...

    You are saying we should (if we have $1000 to spend on an account) only wire $100 at a time?
    Can I state that Hidethereal? :

    By the way, funding/depositing money (to your FX account) by credit card charges nothing, zero, there are no fees involved.

  2. #22
    What the heck happened to my article???!

  3. #23
    Junior Member Cardtt's Avatar
    5
    Did I state that Hidethereal? :

    Incidentally, funding/depositing money (to a FX account) by charge card charges nothing, zero, but there are no fees involved.
    You didn't state this exact scenario, but the concept is the same.

  4. #24
    I'm the one using $10,000 cause then I could open new ($100) positions while the other positions are still in play. While the man can do one place at a time. Since more chances translates to better returns (provided you've got the edge).

    So I guess in fact, both traders aren't equal. They could risk equal $ number, but the one trader has a higher probability of success.

    Plus does not it take at least few hours or even days for account balances to be upgraded even if you do credit card deposit? The trader who retains depositing will wind up wasting time and overlook good trades. .

  5. #25
    Member Rentt's Avatar
    32
    I rather be the one with $10,000 trigger I could start new ($100) positions while the other places are still in play. While the other man can do one place at one time. Since more opportunities translates into greater returns (provided you have the advantage ).
    Well we do not know for certain if greater opportunities translates into greater returns in the long run Hilmy83. What is true however is it will certainly decrease the drawdown and give you a much smoother equity curve.

    But MORE profits I am not certain about that.

    Subsequently the trader who keeps depositing will end up wasting time and overlook superior trades on the way. .
    Authentic, but he'll also avoid a lot of losing transactions too, while awaiting his deposit to clean in the long term things will even out.

  6. #26
    Junior Member javiersd12's Avatar
    21
    Well we don't know for sure if more chances translates into greater returns in the future Hilmy83. What is true however is that it will certainly reduce the drawdown and give you a smoother equity curve.

    But MORE profits I am not sure about that.



    Authentic, but he'll also avoid a lot of losing trades also, while awaiting his deposit to clear in the long term things will even out.
    You are supposing his system has only a 50% success rate and also that his profit trades and losing trades will be exactly the exact same size.

  7. #27
    Junior Member Cardtt's Avatar
    5
    True, but he'll also avoid a lot of losing trades too, while waiting for his deposit to clear in the long term things will even out.
    If you get a good system with specific entry and exit rules you want to take every sign. You never know which trades will likely be profitable and which will be unprofitable. You might miss the winner or even the loser, which makes it up to determine which trades you miss turns your system to betting.

  8. #28
    Junior Member javiersd12's Avatar
    21
    It ought to be extremely obvious by now darkstart: this called high-leverage-is-bad fantasy is simply that, a myth, since the preceding examples show.
    Okay....not that I buy your entire premise, but what if it's a fantasy? That is his point. Are you going to tell us that if we have two accounts, one with $100 and one using $10,000 and should we utilize the system on the two, that we'll earn more money by maxing out our account on each transaction? If not, then there is no point.

  9. #29
    Senior Member layunny's Avatar
    195
    It should be extremely obvious by now darkstart: that called high-leverage-is-bad fantasy is only that, a myth, as the previous examples show.
    Finding a hypothetical situation where you incur outrageous transaction costs and gain zero tangible benefit barely qualifies as justifiion for a blanket statement about something being generally good or bad.

    Make your point about how a person may benefit from your arguement.

  10. #30
    Member Rentt's Avatar
    32
    you are assuming his strategy has only a 50% success rate and also that his profit trades and losing trades will be exactly the same size.
    Everything depends on your take profit and your stop, not your winning percentage.

    Also please bear in mind I wouldn't have to deposit $100 eternally in my FX account, at the second or third deposit the profits will begin to grow by the system wouldn't require any more deposits.

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