Using High Leverage (to Win Big) With a Small Position Size! 🔱⚡

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Using high leverage with a small position size? High leverage - high risk? Why do some traders like high leverage? Is it possible to trade with high leverage while limiting the risk? Does that make sense? OK.

This is a question we received from a viewer:
Forex Student •
Would you possibly recommend high leverage with a very small position size? I can’t get my head around how leverage is so risky of people place a stop loss equivalent to 1% of their account size.......I don’t see why you can’t have a stop at say 1 x atr and have a small position size within that. Can you explain or elaborate on whether what I am saying makes sense lol as I’m only a year into studying this and really wanna knuckle down with it for 2020.

This is a good question - we often talk about leverage being a bad thing. Actually, the issue comes with the risk you are taking. If you look at leverage as a tool and capital at risk as a completely separate metric things start becoming clearer.

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[AndyJMacLeod]

Leverage can speed-up your account growth or decay. The issue isn’t the leverage as such, it’s your trading plan and skills.

[GorillaForSale]

The big danger of using high leverage on tight stops is slippage and gaps during high volatility. When you've ramped the leverage right up and price slips past your stop by just a couple pips (which happens often) suddenly you're taking a far larger loss than you've planned for.

[georgep]

When I was new to trading i did a +1100% on my portfolio baboon trading on 125x leverage - I figured i have multiplied my money now, I´ll just do the same thing again and buy a lambo tomorrow, ecstasy was replaced with horror and the deepest abyss of regret a few moments later as I got liquidated....

The price we pay for knowledge eh?

[simrybak]

Leverage is good, skilled disciplined traders will make money faster,
the rest will lose money faster.

[pedroewert]

What kind of works is: if you start out with a low leverage position that goes your way, so that your broker would allow you to rebuy more. Then you can use those profits at a solid support/retracement level for an even higher leveraged trade, so you basically just risk profits, instead of risking your starting capital.

[Playeriyo]

Leverage is made for you to build really small accounts once is a big account is better to slow down on leverage or use leverage but with small lots decide

[zmwdnjl]

10x-20x leverage is the way! If you know what you doing then you can open a bigger position with 20x leverage and its going to work.

[weslie]

Thank you ! This is the question and answer i was searching for all over youtube !!

[azinyako]

Wow! You just hit the nail on the head. This is the perfect answer to the question that I've been wanting to ask. Thank you for this video.

[theunknown]

Totally agree and whenever a profitable trader with the correct mindset says something to losing traders, usually it will sound wrong to them.

[theinvestmentdoctor]

Can't thank you enough for this video. I stopped trading because I didn't know how to adjust my position size. That's why it's important to know how to tune your size. this video may convince me to start trading again.

[SalemGTV]

Isn’t this technically the best way to trade? Using massive leverage and only placing the maximum amount of risk as your principal. Like a buying an option....

[KMRNUK]

1:500 leverage is the leverage to make money if you know what you are doing and has a 80-95% win rate. 1:30 paltry little leverage makes you pennies unless you are risking £10, 000. With 1:500 leverage you can rapidly grow your account with just £100.

[David-cszo]

10x leverage is more than enough to make huge gains and you don't have to look at the charts 24/7.but for scalping i use 85x as it doesn't really matter.

[ntuidanito]

Damn! this just answered the big question on my mind

[XxXxDominator]

I HAD TO REWATCH THIS TO LET THE RISK PART SINK IN CUZ MY WHOLE GAMES ON POINT EXCEPT FOR THAT...NOW ITS ALL ON POINT AYYE!!!

[KMRNUK]

If you know what you are doing then you should only be looking at brokers who offer 1;500 leverage to make fortunes or you can just forget it

[believeurhappy]

Thanks mate I also couldn’t understand why everyone acts like high leverage is bad. It’s all about risk management as u said 👍

[BOXINGUNLOCKED]

Thank you for this video it was myself that sent the question in and this is the first iv seen the reply haha.

I’m struggling to pass challenges and just thinking that if I find an account by myself with high leverage and just cap my risk to 1% I can make decent profits.