thread: Is high leverage really bad for traders?

Create your point about how a person may gain from your arguement.

This post is NOT (NOT!) About not to trade on the FX or how to trade. I am exposing my views about this high leverage myth. How traders utilize their money or intend to utilize their money is not my problem and has nothing to do with this particular thread.

okay....not that I buy your whole premise, but so what if it's a myth? That is his point. Are you going to tell us that if we have 2 accounts, one with $100 and one with $10,000 and if we utilize the same system on both, that we'll make more money by maxing out our account on each transaction? If not, then there is no point.

No, all I said was that those 2 accounts would end up making the same sum of money, although at the next account it would appear we're using too much leverage and at the first account we're using secure leverage.

This secure leverage is of course only a illusion, both accounts are creating exactly the same precise profits and are experiencing the same precise drawdown.

No, I said was that those 2 accounts would end up making the exact same sum of money, although in the next account it would seem we're using too much leverage and in the first account we're using secure leverage.

This secure leverage is of course just an illusion, the two accounts are creating the exact same exact profits and are experiencing the exact same precise drawdown.

I dont see how this can be possible

I dont see how this can be possible

What's that?

Recall a pip is a pip, regardless of what leverage you're using.

But hey, do not even take my word for it, just try the experiment for a week and then see for yourself Don Perry.

This safe leverage is of course only an illusion, both accounts are creating exactly the same exact profits and are experiencing the same exact drawdown.

Okay, both are creating exactly the same drawdown and profits supposing that the wire transfer prices are minimal and no good/bad trade missed while awaiting wire transfer.

Why bother discussing this in the first place is what I do not know.

High leverage isn't the problem. It only becomes a problem when it's misused. It isn't only the novices that abuse ita lot of pros do all of the time.

Ok, both are creating exactly the same drawdown and profits assuming that the wire transfer prices are minimal and no good/bad commerce missed while waiting for wire transfer.

Why bother discussing that at the first place is exactly what I don't understand.

Well if both accounts are making precisely the very same profits even though one account is having an extremely conservative leverage and the other account is having a frightening 400:1 leverage then we have to conclude that this large leverage is poor thought is simply a myth.

This is precisely what I am attempting to describe from the start.

Okay folks, that is it for me as far as this thread is concerned, I cannot add anymore remarks. Thank you all for your input.

Well if both accounts are making the same profits even though one account is having an extremely conservative leverage along with the other account is having a scary 400:1 leverage then we must conclude that this large leverage is poor idea is simply a myth.

This is precisely what I am trying to explain from the beginning.

Okay folks, that's it for me as much as this thread is concerned, I cannot add anymore remarks. Thank you for your input.

I know im late to the party here but I must agree with you FXTerminator about your overall view of leverage when it comes to Currency Market trading. Ive been trading using the highest leverages possible and have been very profitable. What makes it work for me is that the fact I have a HUGE amount in my trading account but only trade a very low lot amount and here's the kickerI dont use stop losses. Yeah I know, alot of you are rolling your eyes but it works for me as it allows me a window of draw while also using the added impact of my broker not being able to stop hunt against me. In any given day a pair doesnt regular more than 1%. My guesses usually wind up correct. Sure ive taken losses and manually gotten from a trade but alot of instances just roll onto it until it veers back around my way. High leverage when investing low lot sizes allows you to just let it ride occasionally for two or three days before finally (barring some kind of sudden swing predicated on breaking news) items return around your way. Over the last 5 years I'm FAR more up than down entire.

As this thread began, those dumb CFTC rules tooke change and of course I immediately pulled my cash from my U.S. based broker and moved it abroad. FX, I'm interested to know how you handled this invoices **t regulation alter. Did it slow you down much or did you move your account abroad? I dont even have to ask exactly what the other guys on this thread did. They likely applauded that go and appreciate 50:1 or not as leverage lol. What believing that's. I'm a man. Everybody in the market are developed men and women. I dont think I must be limited because women cant and grown men manage cash. Bring back high leverage at the U.S. and let us GROWN MEN AND WOMEN decide for ourselves how we want to manage OUR money.

If money management is the key to making forex profitable, what level of margin vs equity would be good in the event that you want to be a long term trader. Thank you for any input.

Should you use EA leverage Might help