The leverage in multiples on the Forex market offered by forex brokers is up to 500 to 1!The use of leverage in Forex is certainly one of the most interesting aspects of the foreign exchange market, but it is necessary to know how to use it in moderation.
It is sometimes heard that 50: 1 or 100: 1 was not enough because other brokers offer more
Even if there is a theory that having more cartridges in your rifle is better, remember that using 10: 1 leverage exposes your account to a 15 times greater risk of daily loss. Something is missing in the original text if the volatility reaches 1.5% on the day. At that rate, four or five consecutive losing trades can wipe out your entire trading account. Therefore, it is highly recommended not to use high leverage when starting. As a part of the crypto engine review this is important now.
After a few months of practice and more at ease, it is advisable not to exceed the 50: 1 leverage, which already seems huge.
Currency pairs: don’t try to beat them
Diversification can be a good thing when you are a conservative investor in Forex Trading. As the saying goes, “don’t put all your eggs in one basket”.
But when starting to trade in forex, it is impossible to be able to correctly track all currency pairs and news related to each one. Each currency pair reacts according to its own parameters.
In the same scenario, two currency pairs will not behave in the same way. To avoid losing, it is best to start by focusing on one and only one currency pair, with a maximum number of three.
Use the stop loss
Placing a stop loss correctly is not easy, especially for beginners.As a result, even if the novice investor has taken a position in the right direction of the market, he will lose money by executing a stop loss out of place. The next logical step for the beginner, out of fear, is to abandon the use of stop los s. Do not give up. Use them with care to protect your funds but not too tight, to allow the market to naturally swing.