What leverage should be good for a newbie to use?

If you are a newbie then you are in the learning phase of your trading journey, so what you can do is, try both on a demo account i.e. higher and lower leverage and analyse that how it is working try to do some analysis and then choose by yourself that what is best for you.
 
"Most of the time play tight to the vest. Make enough to live well and cover your overhead. When you find an arb or quasi arb, pile it on. Hit it with everything you got. Borrow if you have to".

Ask yourself, "what am i trying to leverage"? Most of the time people are leveraging a negative expectancy. You will drive your self into the ground sooner. If you have an actual edge then you want to pack on some heat. Most people however do not have an edge. In fact, edges are extremely hard to come by.

Edges are usually extremely small in the market. Large edges are usually eroded by other smart participants. If you have a true edge - an advantage - than you want to hit it with size but not too much size that you blow out. A casino can loose on any one hand in black jack. There is a reason why they have many tables running and maximum bet per table. If your edge is 52/48 with 1:1 risk : reward you probably dont want the leverage to be that high (unless you have multiple uncorrelated trades happening).

However, if your probability of winning is 70:30 with 1:1 risk reward, then you probably want to pack on quite a bit of heat.

Before you even think about leverage, really try and understand what you are trying to leverage.

When Bill Perkins was asked how he got rich his answer was "By being right and applying leverage. Find an edge, apply leverage, get rich. Field agnostic". People forget that they need the first part of the equation. :)
 
tedmos38 said:
If you are a newbie then you are in the learning phase of your trading journey, so what you can do is, try both on a demo account i.e. higher and lower leverage and analyse that how it is working try to do some analysis and then choose by yourself that what is best for you.
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Still to be on the safer side, beginners should not make much use of leverage until they gain some experience. So if you want to use, you can start with something like 10-20x and slowly increase it once you get better at trading.
 
The higher the better like 100X or more.

Then you only need to put very little money into your trading account.
But if you can't control your emotion, don't put any money into your trading
account.
 
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El Trado said:
1:200? Why don’t you just donate the money to charity. Your chance of being successful with a 1:200 leverage is as high as the charity noticing your good deed, and give you a million as donor of the month.

Anything above 1:10 is just gambling. And unless you are a seasoned pro, you shouldn’t even go as high as 1:10
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Thank You for your kind reply and you have guided me in good way and give me good advice about use of leverage.
 
No good broker with strong reg will be able to provide more than 50x, as per my experience. and if you think they do, think again. brokers like Fxview, Fxpro and XM offer only 30x to EU residents because of cysec. and then you must've heard 888x with XM or 500x with fxpro, that is when they are outside of cysec's clutches. no upper hand.
And there is a reason behind offering low leverage, it protects you in the end. So the lower the better. Negative balance protection is advantage.
 
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