Forex Trade Practice
2010
How much leverage should I be using when trading Forex?
I am going to be 18 in a few weeks. My brothers set me up a forex trading practice account a fair while ago now, and I have been playing around with it, trying different ways to make money and what I’ve discovered is that by using 1:100 leverage in each trade is really not a healthy habbit and along with that using the suggested stop-losses and take-profits, all because I’ve been consistently losing money that way. I have, however, been using 1:25 leverage and have been setting stop-losses using all of my trading capitals value and by not being greedy, have been taking in enough profit to get 10% return on my trading capital and so far I’ve discovered, this actually has worked everytime I do this.
What I’d like to know is whats the best amount of leverage I should really be using, and the stop-losses I should I set up to minimise all potential losses and make consistent profits?
I want you to re-read this sentence, which you wrote, at least 10 times.
No I am not kidding! Here is the sentence:
“I have, however, been using 1:25 leverage and have been setting stop-losses using all of my trading capitals value and by not being greedy, have been taking in enough profit to get 10% return on my trading capital and so far I’ve discovered, this actually has worked everytime I do this.”
If you have something that ALWAYS works, don’t change it bro!
You are 18, which is awesome age to get into Forex. You will be a millionaire in 5-10 years if you trade consistently and don’t get greedy.
I generally trade with the maximum amount of leverage possible (100:1 with my broker – Alpari US).
Why?
Because I can!
Leverage is what makes your account grow really fast. You essentially get to bet with money that you don’t even possess.
Sure, it’s riskier, but also opens up the door for bigger profits.
It’s a double-edged sword. If you get into Forex with real money, just do whatever it is you are doing now and do not deviate from it.
Simple systems are the best. Once you get rolling along you can always increase your lot size.
Just remember that you can never change your leverage though (at least not to my knowledge).
Good luck!
Learn Forex With Plus 500 Trading Platform – Practice Forex Trading
|
|
Evidence-Based Technical Analysis: Applying the Scientific Method and Statistical Inference to Trading Signals $54.33 Evidence-Based Technical Analysis examines how you can apply the scientific method, and recently developed statistical tests, to determine the true effectiveness of technical trading signals. Throughout the book, expert David Aronson provides you with comprehensive coverage of this new methodology, which is specifically designed for evaluating the performance of rules/signals that are discovered b… |
