Preschool>= Lesson Status ?
Kindergarten>= Lesson Status ?
Elementary>= Lesson Status ?
Grade 1 Support and Resistance Levels
Grade 2 Japanese Candlesticks
Grade 3 Fibonacci
Grade 4 Moving Averages
Grade 5 Common Chart Indicators
Middle School>= Lesson Status ?
Grade 7 Important Chart Patterns
Grade 8 Pivot Points
Summer School>= Lesson Status ?
High School>= Lesson Status ?
Grade 9 Trading Divergences
Grade 10 Market Environment
Grade 11 Trading Breakouts and Fakeouts
Grade 12 Fundamental Analysis
Grade 13 Currency Crosses
- What is a Currency Cross Pair?
- Crosses Present More Trading Opportunities
- Cleaner Trends and Ranges
- Taking Advantage of Interest Rate Differential
- Obscure Crosses
- Planning Around News and Fundamentals
- Creating Synthetic Pairs
- Euro and Yen Crosses
- How to Use Crosses to Trade the Majors
- How Cross Currency Pairs Affect Dollar Pairs
- Summary: Currency Crosses
Grade 14 Multiple Time Frame Analysis
Undergraduate>= Lesson Status ?
- Why Keep a Trade Journal?
- Benefits of Keeping a Journal
- What Should You Record in Your Journal?
- Potential Trading Area
- Entry Trigger
- Position Sizing
- Trade Management Rules
- Trade Retrospective
- Trading Journal Statistics
- Reviewing Your Trading Journal
- Difficulties of Keeping a Trade Journal
- Summary: Keeping a Trade Journal
Graduation>= Lesson Status ?
- Which Trading Style is Best for You?
- Which Currencies Should You Trade?
- What is Your Level of Trading Experience?
- Should You Be a Discretionary, Mechanical, or Hybrid Trader?
- What Kind of Mechanical System Suits Your Personality?
- What is Your Attitude Towards Risk?
- What Kind of Stop Suits Your Trading Style?
Don't Underestimate Leverage
Most beginners underestimate the potentially devastating damage leverage can wreak on their accounts. Understanding leverage enough to know when to use it and when NOT to use it is critical to your success!
Leverage is a very powerful tool but both old and new traders use it to destroy their trading capital simply because they take its destructive force too lightly or ignore it altogether. It's a pity, but the more of them there are, the easier it is for us smart traders to make money. Sad but true.
Always keep in mind these words from a famous superhero: With great power comes great responsibility. Or something to that effect. Come on, we know you've seen that movie. Here's a clue:
Anyway, high leverage is a favorite selling point for most forex brokers. Yes they pitch that you can make a huge killing using huge leverage, but also know that you could easily be killed by huge leverage as well.
Brokers want you to trade with a short-term mindset. They want you to trade as much as possible as often as possible. It's the only way they make money. One or two pips are important to them. The more you trade the more they make on the spread. It's not in their best interest to tell you to let your trades run longer than the same day.
If you want to give yourself the best chance to succeed, first learn to trade profitably without leverage.
Play it safe. Protect your capital.
When you can consistently make more pips more than you lose then, and only then, should you use unleash this weapon of mass destruction called leverage.
Destroy traders (or your broker) taking the opposite side of your trade. Don't destroy yourself.
Forex trading should be treated as a job or business. Don't think that just because brokers allow you to use high leverage with a low minimum deposit that you can "make a quick
Be realistic in your expectations and be willing to properly educate yourself.
If you don't, you will die.
Okay, not really, but your account will die.
While you are logged into your account,
you can save your progress in the School of Pipsology!
- Leverage the Killer
- Leverage and Margin Defined
- Margin Call Exemplified
- Margin + Leverage = Possible Deadly Combination
- Negative Effects of Leverage
- More on Leverage
- How Leverage Affects Transaction Costs
- Don't Underestimate Leverage