Leverage the two headed sword

Leverage can make you profit fast but also can make you loss quickly. Professional forex trader, always know how to manage leverage. You shouldn’t take high leverage in your trading. If you are wrong, then the game will be over. Leverage will affect your result the minute you enter your position. Because of the spread (bid and ask level difference), you might instantly loss 6% if you are highly leveraged. If one pip worth 2%, the the 3 pip spread will cause you to loss 6% from the beginning of the trade.

In eToro that I’m using, you can set the risk level you are willing to take. The more risk you are taking, the more leveraged you are. In eToro, I use the “X100” risk level.

And here is today’s trading result:

Today I can gain around 6%, which is very good. If you multiple this with 22 days. You will have 132% per month. Well I’m quite happy with 50% profit per month. Happy trading guys.