Being a successful trader - Forex Signals & Mentoring

2. LeverageOhhh what a huge issue this is. Most traders don’t even understand it. Yes, itis possible in our world to trade with money we don't have. But, do you thinkanyone is going to give you gifts when it comes to financial market??The idea behind leverage is simple – "You want to make fast money? Cool,you can. BUT remember that for that you will have to risk MORE!" Not moremoney, but more % of your balance per trade.Let's call it simply on its right name: Leverage = The speed of you growingyour account or losing all your money!It's hard to admit, but that's what it really is. As on the first point, it ispossible to turn 1K to 100K, if you use CRAZY leverages. During my tradinglife I saw people that turned 10K to 300K in 3 months, but I saw many morepeople who lost 10K after a week!!! That's how it works - The simple rules ofeconomics.It's actually very simple to understand. Imagine that you are buying a house.If you have all the money for the house, you pay with it and the house isyours! You bought it, and you enjoy it as your own. Now imagine you don'thave all the money so you borrow it, usually from a bank. You pay % for that.The more money you borrow, the longer the period you have to pay for it!The same rule applies to trading. When you use leverage – you use moneyyou don't own! And you will pay for that! But in the case of trading, you willnot pay % to the bank, you will pay your deposit money to the broker whenthe market is going against you!My conclusion – don't use leverage! Yes, it will take longer until your accountreaches high numbers, but you will sleep well, with no worries and with no"debts" you have to pay.| P a g e 4