Never Underestimate Leverage

Most beginners underestimate the potentially devastating damage leverage can wreak on their accounts.

Understanding leverage enough to know when to use it and when NOT to use it is critical to your success!

 

Leverage is a very powerful tool but both old and new traders use it to destroy their trading capital simply because they take its destructive force too lightly or ignore it altogether.

 

It’s a pity, but the more of them there are, the easier it is for us smart traders to make money. Sad but true.

 

Always keep in mind these words from a famous superhero:

“With great power comes great responsibility.”

Or something to that effect. Come on, we know you’ve seen that movie.

Here’s a clue:

 

Get it?

Anyway, high leverage is a favorite selling point for most forex brokers.

 

Yes, they pitch that you can make a huge killing using huge leverage, but also know that you could easily be killed by huge leverage as well.

 

Most brokers want you to trade with a short-term mindset.

 

They want you to trade as much as possible as often as possible.

 

It’s the only way they make money. One or two pips are important to them.

 

The more you trade the more they make on the spread.

 

It’s not in their best interest to tell you to let your trades run longer than the same day.

 

If you want to give yourself the best chance to succeed, first learn to trade profitably without leverage.

 

Play it safe. Protect your capital.

 

When you can consistently make more pips more than you lose then, and only then, should you use unleash this weapon of mass

destruction called leverage?

 

Destroy traders taking the opposite side of your trade. Don’t destroy yourself.

​

​

 

Forex trading should be treated as a job or business.

​

 

 

Don’t think that just because brokers allow you to use high leverage with a low minimum deposit that you can “make a quick ” or “get

rich quick”. Approach the currency markets with respect.

 

Be realistic in your expectations and be willing to properly educate yourself.

 

If you don’t, you will die.

 

Okay, not really, but your account will die.

​

" Under the expert guidance of Sensei FX, you'll have the opportunity to unleash your inner quiz champion as you tackle brain-teasers, unravel mysteries, and engage in a friendly battle of wits. This is your chance to shine and show off your expertise across a range of captivating subjects, all while learning from the best.

Come join us for an evening of camaraderie, learning, and a whole lot of fun, guided by the wisdom of Sensei FX. Remember, the quest for knowledge never ends!

Looking forward to seeing you there! " ~SenseiFx

​

​

​

​