Disclaimer:
Warning! The given tips are born from the minds of financial disasters and for entertainment purposes only. These are the results of the imagination of unsuccessful traders with a knack for making impressive losses. These master traders are known to make their financial mistakes by making huge losses. Unsuccessful traders are honored members of...
The difference between trading and gambling.
This article will shine a light on the most frequent mistakes that traders make. These mistakes blur the thin line between trading and gambling.
Many people have spoken on this topic, but we truly believe that it is still not sufficient, and traders should be better educated on how to avoid gambling behaviour and...
Contracts for Difference (CFDs) have garnered significant attention as derivative products that offer traders the ability to speculate on the price movements of various assets without the need to own them physically. These financial instruments emerged in the latter part of the 20th century, propelled by the advent of the internet revolution, which revolutionized...
Leveraged trading allows even small retail traders to make money trading different financial markets.
With a borrowed capital from your broker, you can empower your trading positions.
The broker gives you a multiplier x10, x50, x100 (or other) referring to the number of times your trading positions are enhanced.
Brokers offer leverage at a cost based on the...
“Leverage” means using a small amount of your own money in order to control a much larger amount of money. Typically, you borrow the remaining amount through your broker.
For example, say you want to control a $50,000 position. Your broker might put aside $500 of your own money and borrow the remainder. You now have control over the $50,000 with just $500...
There is one tool with trading, which you can accelerate your portfolio, compared to with investing.
I’m talking about Gearing (or leverage).
To wrap our head around this concept, here’s a more relatable life example.
When you buy a house for R1,000,000, it is very similar to trading derivatives. Initially, the homeowner most probably won’t have the full...
Margin can be a powerful tool to leverage your investment returns or to finance purchases apart from your portfolio.
Margin is an extension of credit from a brokerage firm using your own eligible securities as collateral. Most traders typically use margin as a means to purchase additional securities, but there are other uses too. Interest is charged on the...
Margin trading is when you pay only a certain percentage, or margin, of your investment cost, while borrowing the rest of the money you need from your broker.
Margin trading allows you to profit from the price fluctuations of assets that otherwise you wouldn’t be able to afford. Note that trading on margin can improve gains, but increases the risk and size of...
“Leverage” means using a small amount of your own money in order to control a much larger amount of money. Typically, you borrow the remaining amount through your broker.
For example, say you want to control a $50,000 position. Your broker might put aside $500 of your own money and borrow the remainder. You now have control over the $50,000 with just $500...
Understanding how to trade forex requires detailed knowledge about economies, political situations, all the individual countries, global macroeconomics, the impact of volatility, it goes on and on. But the reality of the situation is this isn't what makes most new traders fail. What makes most traders fail isn't the lack of knowledge or understanding of what it is...
When you should use leverage in your trades? I’m going to answer this question, but first, we have to mention two other questions to be answered.
Q1: What is a reasonable trade?
An order in which the entry point, stop loss, and take profit are already pre-defined based on a good return strategy or rules.
Q2: What is money management?
Money management is to...
Knowing the link between leverage and equity is important. Now, you have to decide how much you are
willing to risk and set your trading capital accordingly.
To find effective leverage, consider two inputs: trade size and equity.
Use effective leverage of 10:1 or lower.
Only risk 10% or less of your account balance at any given time. Add the cash value of your...
Advantages
*Enhances Capital Efficiency: In forex, capital efficiency is the comparison of how much money is being risked relative to potential profits. High degrees of leverage help traders maximize the potential of their risk capital and turn minimal investments into substantially larger returns.
*Extraordinary Profits: The greater the applied leverage, the...
In this video:
I draw out a hypothetical initial investment.
I should how you can multiply your net profit by trading out and back in along the way to your final projected target.
This video is all about trading levels, a strategy I have developed from years of experience that has helped my to multiply my crypto profits exponentially.
I have 30x'ed my...
Going to keep this simple here.
The price of bitcoin has sky rocketed these past few months. During the spring & summer time a few hundred dollar move in price would be crucial!
Now the price of BTC is lingering around 50,000. Those small movements that where only a few hundred dollars are now thousands.
👉 My point here is that anyone using anything...
Hello Everyone,
I had some questions recently asking me to explain leverage and margin so that's exactly what I'm explaining in today's video.
Feel free to drop a comment below if you have any questions.
Regards,
Michael Harding
Hello, in this educational idea, I tried to explain the logic behind leveraged transactions and the hedge effect of the leverage in a few sequential trades.
I hope that will be useful.
Best regards.
Hello everyone,
Many of you wonder how it feels to trade bigger accounts, and keeping it short: stop thinking punctual.
Whenever you think I'm buying HERE and getting out exactly THERE. Forget it, never again.
There's simply not enough volume for your positions - so what you do?
You break it up and you start thinking the final average price. You stop...
![GBPAUD: Daytrading Leverage Strategy for Bigger Accounts on Forex[R:R 3]](https://s3.tradingview.com/y/YKyJSx9e_mid.png "Daytrading Leverage Strategy for Bigger Accounts on Forex[R:R 3]")
