what do you prefer high or low risk?

Apr 17, 2012
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what do you prefer high or low risk? i mean do you like high leverage and high volume or low one and why?
what is the leverage and volume that you are always use in your trading?
 

Fxpipper

Master Trader
Oct 26, 2011
1,132
3
49
Same here, high leverage but low risk..makes sense in the long run and you get to avoid burning your account out..
 

cjthelegend

Trader
May 3, 2012
15
0
12
the higher the risk, the greater the varierty of outcomes, you can win big or you can devastate your account. I use 1:50 leverage on my MahiFX account, really don't need much more than that if you compound and your risk management is efficient. I am however only trading a small amount of capital until my long term stats show a good positive trend.
 

Easy Trader

Master Trader
Sep 17, 2011
240
4
59
John Forrest, the answer is yes and no. Leverage is just the ratio of capitol you need to put up(freeze) on margin to control X amount of contracts. Any negative results will directly come out of your 'free margin' or profits will be added to 'free margin'. Now if you abuse your leverage and buy to many contracts then you will have frozen most of your capitol and left only a small amount as 'free margin' thus if your trade goes negative greater than that amount then you get a 'margin call'....So like Enivid, he likes 100:1 which leaves him with alittle more free margin than Cjthelegend who perfers 50:1 which may give Enivid the ability to have 1-2 more trades open than Cj. Its a exercise in preference and common sense. A 1000:1 is crazy and any broker offering is probably a bucket shop and wants you to abuse the leverage and blow the account. You have a Ferrari and I drive a Mini we both maintain the speed limit but you like the comfort of knowing you can go 170 and I prefer to get more miles per gallon. You can have high leverage and still risk only 1% of your account balance per trade.
 
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Fxpipper

Master Trader
Oct 26, 2011
1,132
3
49
Noo!

What do you do to lower your risk if you have high leverage? is your risk not already greatly increased the move leverage you have?

I meant high leverage [within reasonable limits], for example opting for a 1:200 sounds good to me as long as risk % is kept low.
However, you do come across brokers who keep offering extremely high leverages [1:500] and if you are new to trading - you need to avoid opting for the high end leverage.
A better solution would be to select a leverage level, one that you are comfortable with, based on your trading performance. But make sure you exercise risk management..for obvious reasons
 

inggo

Master Trader
Jan 13, 2012
493
12
59
Philippinese
I'd go for low risks on a low capital, i dont mind risking a bit more with a bigger account as long as it is with the my managed loses :) it really depends i guess but for starters I would highly suggest sticking to low risk and low leverage for first time live traders before they move on to a 1:500 leverage :)
 
Apr 17, 2012
59
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I meant high leverage [within reasonable limits], for example opting for a 1:200 sounds good to me as long as risk % is kept low.
However, you do come across brokers who keep offering extremely high leverages [1:500] and if you are new to trading - you need to avoid opting for the high end leverage.
A better solution would be to select a leverage level, one that you are comfortable with, based on your trading performance. But make sure you exercise risk management..for obvious reasons

For the amount of mental and physical effort which is invested in trading it's only natural that you want to have a high return on your efforts, but the only way you can do this safely is to have a large account and also to have a high leverage.
Opt for a high risk- high rewards:)
 

TheLastBear

Banned
Jul 11, 2012
192
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Risk = lack of knowledge. The markets in general are almost risk free. Each individual loads risk into their portfolio by their lack of knowledge. I prefer high leverage (1:500 or 1:1000) with lot sizes between 0.01 and 0.10.