Most beginners place too low value on the potentially disorder damage leverage can cause the infliction on their accounts. It is curtail to Understand leverage enough to know when to use it and when NOT for you success.
A very powerful tool Leverage is but both old and new traders use it to ruin their trading capital simply because they take its destructive force with indifference or carelessness or ignore it altogether. But the more of them the easier for us smart traders to make money. Sad but true.
High leverage is a great selling point for most of the forex brokers. Yes they are pitching that you can make a huge killing using huge leverage, but be sure you could easily be killed by huge leverage as well.
Brokers want you to trade with a short-term mental attitude. It’s the only way they make money. Some few pips are important to them. The more you trade the more they make from spreads. It’s not in their best interest to tell you to let your trades run longer than the same day.
If you want to give yourself the chance to succeed, first of all learn how to trade profitably without leverage. Trade it safe and protect your capital.
When you can make more pips more than you lose steady continuity, then, and only then, you should let loose this weapon of destruction called leverage. Destroy broker (or traders) taking the opposite side of your trade. Don’t destroy yourself.
Forex investments should be treated as a business. Don’t think that its just because brokers let you use high leverage with a low minimum deposit that you can “make a quick
Be concern for facts in your expectations and be willing to educate yourself very good. If you didn’t, you will die. Not really, but your account will.
LEVERAGE:
The ability to control large amounts of currency/commodity with a comparatively small amount of capital
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