dynamic leverage?

[tonegawa]

I'm still practicing with a demo account.

I'd like to know if I can use leverage in a demo account and if, when I will open a real account (for example Oanda), I can change the leverage value whenever I want or it is a parameter which is chosen once for all during the registration.

Anyone knows the answer?

 

[Rhody Trader]

To your first question, yes you can use leverage in a demo account. Generally speaking, they operate the same way as a live account in that regard.

Second, with Oanda you can change the account leverage, but most brokers have a fixed permissible maximum. Really, there isn't much need for changing your permissible leverage so long as it does not prevent you making the trades you want to make. Set it and forget it. You're actual leverage is based on the trading you do, not on your brokerage setting.

 

[tonegawa]

To your first question, yes you can use leverage in a demo account. Generally speaking, they operate the same way as a live account in that regard.

Second, with Oanda you can change the account leverage, but most brokers have a fixed permissible maximum. Really, there isn't much need for changing your permissible leverage so long as it does not prevent you making the trades you want to make. Set it and forget it. You're actual leverage is based on the trading you do, not on your brokerage setting.

thanks for the answer.

Another question. How much leverage do you suggest for a beginner? The range of possibilities is pretty high and I don't know what to choose.
Even if for the demo it's kind of useless, I'd like to train as if it was a real account.

 

[Rhody Trader]

Another question. How much leverage do you suggest for a beginner?

Read this: http://www.theessentialsoftrading.c...1/25/how-much-leverage-to-use-wrong-question/

 

[jiggly]

thanks for the answer.

Another question. How much leverage do you suggest for a beginner? The range of possibilities is pretty high and I don't know what to choose.
Even if for the demo it's kind of useless, I'd like to train as if it was a real account.

I suggest you open a micro account for $100 and treat it like, $10k, $100k, whatever.

same amount to risk % wise, just your pip value will be miniscule. Your leverage should not matter when you are looking to only risk 2-4% of your account, your lot size should be a function of the distance to your stop loss and the total $ amount you can risk on the deal.

If you cannot afford $100 to treat it as tuition money to the market, i would not bother with this business. You will only trade as if it was a real account, if it is actually a real account. There is a massive difference in this game when 'something' is on the line.

 

[tonegawa]

I suggest you open a micro account for $100 and treat it like, $10k, $100k, whatever.

same amount to risk % wise, just your pip value will be miniscule. Your leverage should not matter when you are looking to only risk 2-4% of your account, your lot size should be a function of the distance to your stop loss and the total $ amount you can risk on the deal.

If you cannot afford $100 to treat it as tuition money to the market, i would not bother with this business. You will only trade as if it was a real account, if it is actually a real account. There is a massive difference in this game when 'something' is on the line.

Actually I prefer to use the demo account for some months. When I'm learning the basics, I prefer not to be worried to lose everything (and also the annoyance to deposit again).
Then I think I will start with 1000$, and if I achieve several months with gains I will go to the next step with 10000$ and so on :cheesy:

 

[jiggly]

Actually I prefer to use the demo account for some months. When I'm learning the basics, I prefer not to be worried to lose everything (and also the annoyance to deposit again).
Then I think I will start with 1000$, and if I achieve several months with gains I will go to the next step with 10000$ and so on :cheesy:

a few months of gains should probably be more like a year of consistent gains before making a decision to put more money in.

theres no point making larger investments into something that is not working for you. your results will be the same, whether you are trading a $1000 account or a $100,000 account.

 

[LazyManForex]

Unless you have a disposable 10 grand, it all sounds like crap to me.

If you trade demo and you are convinced you think you've got it, then trade your $1,000 account into a $10,000 account using your new skills.

Then if you blow out your 1k account, go back to demo because your money management is screwed. Rinse and repeat.

But for god sake, don't deposit 10 grand. Ever. Each step should prove itself to you, and always in demo first.

-The laziest man at LazyManForex-

 

[tonegawa]

Unless you have a disposable 10 grand, it all sounds like crap to me.

If you trade demo and you are convinced you think you've got it, then trade your $1,000 account into a $10,000 account using your new skills.

Then if you blow out your 1k account, go back to demo because your money management is screwed. Rinse and repeat.

But for god sake, don't deposit 10 grand. Ever. Each step should prove itself to you, and always in demo first.

-The laziest man at LazyManForex-

that's what I was saying

 

[LazyManForex]

As to the leverage question, the answer is obvious. You should use *no* leverage. Use appropriate position sizing and money management for your trading system. Leverage is irrelevant.

-The laziest man at LazyManForex-

 

[LazyManForex]

Jeez. I'm typing all this from my pda. You saying I coulda gotten away with "ditto".

Well, ditto!