Best Trading Indicator™ isn't for or against leverage but here are a few obvious observations we made while working with hundreds of traders over the years. Listen well what's coming because it's crucial
6 reasons for NOT using it
1/ Most liquidated traders give up on trading because they used too much leverage too quickly
2/ Trying to get rich quick doesn't work in trading. Those with a few lucky positions often end up giving the gains back to the market.
3/ Leverage increases your position sizing but also the burden on your psychology. The I'm getting in quick and get out even quicker
doesn't work because many make bad decisions due a way too high positions sizing > stress > fatigue.
4/ Leverage increases your stress and fatigue.
Which decreases your risk management by design
5/ For those sharing positions on social media showing XXX% gain per trade per minute, I would ask them this:
- show me the proof it's on your real account
- show me your bank account statement
- show me you didn't use a web debug tool to fake the XXX% displayed
- show me the tesla you're posting on your account is yours? not bought with your parents' money? not bought entirely using a credit?
6/ Leverage X2 could be very stressful...
So imagine with X10/X15/X25+