Most beginners underestimate the potential destructive damage that leverage will bring to their accounts. Fully understanding leverage and knowing when to use it and when not to use it is crucial for your success. Leverage is a very powerful tool, but new traders only use it to destroy their accounts because they underestimate or directly ...
In addition to amplifying your losses, leverage can also kill you in another way. Although this death process is relatively slow, it is a bit like being executed in a hurry. Most traders cannot detect its arrival, and by the time they do, they are already dead. The killer I am referring to is the transaction cost associated with high leverage. Bar ...
As a trader, you must understand the benefits and pitfalls of leveraged trading. with100:1Taking the ratio as an example, it means that you can enter every1Input up to in USD transactions100Trading in US dollars. As long as your account has1000You can deposit in US dollars100:1Leverage ratio transactions10USD 10000 ...
I hope we have completed the task and you have a good understanding of what a deposit is. Now we're going to take a look at 'leverage' and show you how it destroys unsuspecting and fanatical traders. Before we start, let the following pictures linger in your mind, and you will find that using too many levers is not beneficial ...
Trading currency in the form of margin can increase purchasing power. This means that if you are allowed to use100:1In the leveraged margin account, there are5,000USD, you can trade up to a value of50A currency of ten thousand US dollars, because you only need to provide the purchase price1%As a deposit. Another way to express it is that you have50Ten thousand dollars ...
Assuming you are a successful retired British spy, his time is now trading currency. You open a mini account and deposit it1Ten thousand US dollars. When you log in for the first time, you will see in the "Account Information" window$ 10,000"Equity" column. Available Margin Your available margin always equals' equity ' ...
What is leverage? We know we have dealt with the relevant content, but since this topic is very important, we feel it is necessary to discuss it again. The definition of "leverage" in textbooks refers to the ability to control a large amount of capital with little or no own funds, while the remaining funds are borrowed funds. For example, to control10 ...
Most professional traders and fund managers use their accounts5A standard hand for trading funds worth ten thousand US dollars. If they trade mini accounts, it means they use the5000A mini hand for trading US dollar funds. Let this information flow through your mind for a few seconds. If professionals trade like this, why is it ...
Be a banker, not a gambler! Remember, the banker is a wealthy statistician! Money begets money. Everyone knows this. But how much capital do you need to start trading? The answer depends on how you will carry out your new business. People have different answers. Account shrinkage is a reality that may happen to you at some point ...
Another way to increase your chances of making a profit is to take advantage of your potential profit as your risk3Trading at times. If your return to risk ratio is3:1， You have a great possibility of making a profit in the end. Take a look at the table below as a reference:10Hand（10 Trades）Loss(Loss)reap profit(Win)1$1,0002$3,0003$1,0004$3,00 ...
How much risk does each transaction take?Good question. Try to control your risk within2%。 But this may be a bit high. Especially if you are a foreign exchange trader. The following figure reflects the difference between taking risks with a small portion of assets and taking risks with a larger proportion of assets. Traders' risk per transaction2% vs.10%You can see, ma'am2%of ...
We know that fund management can help us make profits in long-term transactions, but we would like to show you the other side of the story. What would happen if you didn't use the fund management rules? Take a look at the following example: Assuming you have10Wan, you lost5Ten thousand. What is the percentage of your loss to the total account amount? answer ...
Money begets money. Everyone knows this, but how much does it cost to start a transaction? The answer depends on how you will proceed with your new business. Firstly, think about the form in which you want to receive teaching. There are different ways to learn trading: courses, mentors, self-study, or any combination of the three. ...
Risk management is one of the most important topics you have read about trading. Why is it important?Okay, we're making money. In order to make money, we must learn how to manage risks(Potential losses)。 Ironically, this part is most easily overlooked in transactions. Many traders are only concerned about entering the market correctly, but ...
Not all trading platforms are equal. Damn it, even if it'sMT4The platform is also different!According to your agent, they have different indicators. Some people only have basic skills, while others are equipped with various tools and advanced research to help you make trading decisions. To some extent, this isMT4of ...
