Most newcomers misjudge the potentially catastrophic damage leverage can do on their accounts.
Understanding leverage sufficiently to know when and when not to use it is vital to your success!
Leverage is a tremendously powerful instrument, yet both old and novice traders utilize it to lose their trading capital simply because they underestimate or disregard its destructive impact.
It’s unfortunate, but the more of them there are, the easier it is for us savvy traders to profit. It’s unfortunate, but it’s true.
In any case, most forex brokers promote large leverage as a selling advantage.
That you can make a lot of money with a lot of leverage, but you can also get killed with a lot of leverage.
Most brokers want you to trade with a short-term mindset.
They urge you to trade as much and as frequently as possible.
It’s their only source of income. They care about one or two pips.
They profit from the spread the more you trade.
It is not in their best interests to advise you to keep your trades open for more than one day.
To give yourself the best chance of success, first learn to trade profitably without using leverage.
Play it safe. Protect your capital.
Only until you can consistently make more pips than you lose should you release this weapon of tremendous destruction known as leverage.
Destroy traders who are on the other side of your trade. Don’t kill yourself.
Forex trading should be considered a profession or a business.
Don’t believe that because brokers let you to employ high leverage with a minimal minimum deposit, you can “make a quick” or “get rich quick.” Approach currency markets with caution.
Be reasonable in your expectations and willing to educate yourself.
You will perish if you do not.
Okay, not really, but your account will be terminated.