High leverage trading is only for small investors I think. So that they can get good returns by spending less. It has a lot of risk involved but a lot of return too. Sensible and mature traders always use Low leverage approach. Moreover the traders here can better explain about it.

In my opinion high leverage trading is better even if its large investment.

There is nothing wrong with high leverage trading except "risk of loosing everything" But why you should go for high leverage trading when you can predict the long term behavior of a pair or commodity. Its almost impossible to predict short term behaviors.

There are many thinkings & many thoughts about this. Some people saying high leverage is better to account that don't have a large amount, while some say no. I think if you can do huge & large investment then high leverage trading is good similarly low leverage trading is for small investment.

kilinger444. I think you said totally opposite of what you actually wanted to say. If you invest large amount into a trade, leverage will usually be low. Higher leverage means greater risk. It is unwise to invest bigger amounts using high leverage.

I am against of high leverage, since a conservative, steady equity growth is better than an equity growth which is full of bigger drawdowns. Tho every strategy has to face drawdowns time by time, but leverage enlarges this which causes bigger stress (questions like is the strategy REAL good or I have to change it? etc) and also produces bigger drawdown than it normally would be.

I am not telling leverage is bad, I am just telling it has to be used properly and have to keep the ratio low. Even if you use only 1:10 leverage what you may think is extremely low, / trade 10 pip movement means 1% of your balance. Some bigger losses, and you are already in a bigger loss.

Just don't be overleveraged, I say!

High funds, low leverage is better.

Originally posted by Richde

I am against of high leverage, since a conservative, steady equity growth is better than an equity growth which is full of bigger drawdowns. Tho every strategy has to face drawdowns time by time, but leverage enlarges this which causes bigger stress (questions like is the strategy REAL good or I have to change it? etc) and also produces bigger drawdown than it normally would be.

I am not telling leverage is bad, I am just telling it has to be used properly and have to keep the ratio low. Even if you use only 1:10 leverage what you may think is extremely low, / trade 10 pip movement means 1% of your balance. Some bigger losses, and you are already in a bigger loss.

Just don't be overleveraged, I say!

 

Yeah, I follow what Richde says. You should only use High Leverage if you feel you are aware and willing to take the risks involved =)

Originally posted by illiterate

There is nothing wrong with high leverage trading except "risk of loosing everything" But why you should go for high leverage trading when you can predict the long term behavior of a pair or commodity. Its almost impossible to predict short term behaviors.

Arent you trying to deny daytrading strategies? Short term behaviours are also predictable to some extent. But same as in swintrading, you cannot be 100% right about prediction in daytrading.

I think illiterate just trying to say it is really hard to filter out the noise @ short term positions, and much harder to make profit -> what is absolutely true!