facebookShould I use leverage for net net investing. If I use a reasonable leverage of 2x? - Seedly

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Anonymous

18 Apr 2019

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Should I use leverage for net net investing. If I use a reasonable leverage of 2x?

Discussion (1)

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Bang Hong

19 Jul 2018

Sustainable Spender Specialist at Spender Bang

Why you should use leverage in the 1st place?

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Understanding 101 - Double edged sword for leverage.

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Reasonable or not, depends on risk appeitate. For short trading for FX, my leverage is 1:20 , and that's reasonable to me because I do have a stop loss for all my trades. My strategy 3-in-1.

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All trades are "10 credits", to win 20 credits or 10 credits. 3 trade at 1 go (maybe different fx pairs for all 3 trades).

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Trade 1 - Lose 10 credits

Trade 2 - Lose 10 credits

Trade 3 - Win 20 credits

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This way, I do break even, if i predicted 1 trade correctly for simplicy sake.

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Depending on your strategy, leverage might be a good thing, but becareful of the backfire.

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