What leverage should be good for a newbie to use?

[radex78]

The most problem when using high leverage is how the trader control emotion, as human nature they have greedy, high leverage allows trader to trade using higher volume because leverage like a loan from a broker, and greedy often leading to get worst trades

 

[Esha.J]

Leverage is the use of borrowed funds to increase a person's trading position beyond what is obtainable from their cash balance alone. Forex traders often use leverage to profit from relatively small price changes in currency pairs. However, leverage can magnify both profits and losses.

 

[Paula Pink]

Well said, thanks for clearing my doubt.

 

[Schmutz]

I don’t think it is a good idea for newbies to use leverage because leverage is a tool that has both positive and negative effects. If used properly, leverage can magnify profits but if the market goes in the other direction, then it can magnify losses as well. Since newbies lack trading experience, using leverage will drag them towards ‘magnified losses’. If they want to use leverage, then it should be on the lower side to avoid heavy losses in case of an unfavorable trade.

 

[radex78]

Very advisable for newbies they use low leverage to prevent over-trade or greed, but for the better to keep learning and practicing using a demo account until finding a good trading system that works according to trading style and felt comfortable to use.

 

[FahadMd]

leverage works to fail particularly when you trade with low risk management . so traders should build RM before using leverage.

 

[Henry520]

i have seen sometimes in spite of having good risk management the result of trading be useless , market is really unpredictable.

 

[Feculent]

I would not recommend a newcomer to use leverage Even though the profit is more, the risks of losing are also high.
Only after a good amount of practice and understanding one should start using leverage. However, don’t forget to have a solid risk management strategy for leveraged positions.

 

[KCalhoun]

Leverage is usually a really bad idea for new traders

 

[Muffuletta]

I think it depends on how much leverage one can handle. A beginner should first try using leverage on micro lots as it would help the newbie to get familiar with leverage trading.