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Thread: Leverage in aggressive and conservative trading

  1. #1
    Trader Silhouette's Avatar
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    Leverage in aggressive and conservative trading

    Leverage in aggressive and conservative trading




    in the first place, of course, it should be noted that policies are mechanical and automatic. an example of a mechanical-related trading strategy would be that the trader must have a decision about opening / closing the transaction, setting the take-profit and stop-loss according to the strategy. automated strategies are presented in the form of advisory (robot), they are without traders able to make transactions, but first they need to be set, or even likes to say adjust accordingly usually the automated strategy is already the default setting.

    it is also worth mentioning a semi-automated strategy. but the bottom line is that commercial counselors may indicate possible entry/ exit points in the market, or to help determine trends and support/ resistance levels, and traders can only decide to use recommendations from robots or not.

    the second factor in choosing a trading strategy, it is the time interval in which it is designed. trading strategies may be short-term, long-term (investment) or intraday. examples of intraday trading strategies may be designated scalping, trading pimples or news. long term strategies are usually trendy, although you can meet an aggressive long-term strategy, such as example trading strategies may trade on the martingale principle. long-term strategies require decent capital and time to generate income which, by the way, is not always great, but stable.


    aggresive and conservative trading intro


    and, nowadays there are two criterias when choosing a trading strategy that is so automated and how many time intervals to calculate. but there is another important criterion that is often decisive in choosing a trading strategy - is the potential level of risk. in other words, it is an aggressive strategy which promising big profits at high risk of losing most, if not all of the capital, or conservatives.

    conservative strategies because of low risk, negligible losses, truths and benefits are usually several times smaller than aggressive strategies. Examples of conservative trading strategies are those where there is a clear system of restriction losses, the priority being the preservation of capital, moderate gain. Examples of trading strategies with aggressive high-income trade pledges (even more than 100% per annum), a system of restrictions on loss are not thought, and often are nonexistent, designed for short-term periods, and intraday trading.

    despite the risk criteria, we identify then, in practice is the first factor in choosing a trading strategy. of course, everyone wants to make profits quickly and in bulk, but the choice of aggressive or conservative is personal, not everyone is willing to sit for hours in front of the monitor and make sure that all market players do not join, or to see how the profitable month is replaced as profitable.

    so do not round the conservative and stable trading system, chase for high profits, both to consider the pros and cons of each type, and choose the one that is more suitable for you. prioritize a new way, look at the criteria table for choosing a trading strategy.


    aggressive trading


    usually traders who like the high risk of trying to catch the price movement that happens this as early as possible to get the maximum profit. how to install stop-order 'buy' and 'sell' 10-15 points ahead of the news. stop-loss may not be installed, because with two transactions opposite to the same lot number will automatically occur hedging (in loss position) if one order is hit and the price movement reverses direction resulting in another order also active.

    the advantage of this way is the gain can be maximized if the movement is large enough and move in one same direction with our trades. otherwise if we place our trades in wrong direction, if there is a volatile movement / up and down, the possibility of loss is large enough. Also this way will be very detrimental if the brokers you use increase the spread when the occurrence of news.


    conservative trading


    known as safe trading. if you want to play it safe, you do not need to place any order just yet when the news happens but just pay attention to the market reaction. you can just enter the transaction after the direction of movement that occurred quite clearly. this can happen 10 minutes or even several hours after the news. the best time to enter a deal is when the 'wave 2' of the price movement is almost over and 'wave 3' will begin.

    indeed in this way the benefits achieved are not as aggressive as the transactions are taken at the earliest price level, but this is quite safe and the profits are still relatively large. if there are some important news happening in the near future, usually the first news reaction appears hesitant and the price tends to return to its original position. this is because market participants are waiting for the second news to take a position. this condition often traps aggressive traders. but if you use a conservative strategy, you can wait until the following news to ensure the direction of movement and transact when the price movement is certain.


    conclussions

    mostly, being so aggresive sometimes really stressful because we used a lot of our energy to focus with high concentration and this method not really suitable for some people who like doing things in safe way and relax. when there is a risk, there is also the reward, and of course there will be the effects too.


    otherwise, trading with conservative way is quite safe to do. in fact, i am sure that most people like do the trade with joy and relax without worrying about catching hundreds of pips at all times. just chill, forex market provides all the opportunities and there is no need for us to worry about being left behind.


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  2. #11
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    Quote Originally Posted by Nauman1 View Post
    Well in aggressiveness and aggression you may fall down and results may be hurt yourself and you just have to make sure that while trading you are not doing it with any aggressive approach be a mature trader do not be more aggressive because it will really make a bad impact in your trading career you should not be in a panic when loss occurred and be patience person.
    Trading with patient and good confirmation is just the best method of trading and it will save us some of the emotional stress. Generally, in all we do we need to trade with such discipline of being patient and consistent as well. The opportunity will always come, that is one thing I am sure about the business and when the opportunity comes later, take on it with patient and discipline approach.

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  3. #12
    Trader tfs2012's Avatar
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    [lang=ar]Excellent topic
    We as humans by nature are not ready to deal with the Forex market Because of the fluctuations that occur. That is why we must adapt to him. This stage of adjustment may be difficult for many, which ends in their loss no matter how they trade[/lang]

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  4. #13
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    The patient and disciplined traders according to the knowledge I have got are the ones that will last longer and make money because we ain't gonna be in profits if all we keep on doing is being so aggressive, taking trades when we should have waited and then not taking good planning. I don't dare be so aggressive on the market because I have learned on how patient works and how I can have it be on my side.

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  5. #14
    Trader cutiekc's Avatar
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    There is no need being in a hurry with the way we trade, if we want to make money the best method is being the kind of conservative trader because such trader will be able to pay close attention to the market. Leverage should also be done in the conservative approach as well so that we don't take huge risk as we trade and loss our money.

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  6. #15
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    Quote Originally Posted by Silhouette View Post
    the advantage of this way is the gain can be maximized if the movement is large enough and move in one same direction with our trades. otherwise if we place our trades in wrong direction, if there is a volatile movement / up and down, the possibility of loss is large enough. Also this way will be very detrimental if the brokers you use increase the spread when the occurrence of news.
    One can see the advantage but the truth be told about the trading method, it is not a right way and means of trading. Losses we will get from it will be much as well. Apparently the patient and conservative means of trading will give to us peace of mind and can save us from depression.

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  7. #16
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    I will always say to traders that there is no other best way of trading order than making sure that the risk is been take cared of, because trading with so much leverage and risk only gets to thus make things worse for us as traders, so it is quite important that we get to learn and know how to trade with little risk and more discipline and patient method.

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  8. #17
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    Quote Originally Posted by Queen-of-the-coastFX View Post
    I will always say to traders that there is no other best way of trading order than making sure that the risk is been take cared of, because trading with so much leverage and risk only gets to thus make things worse for us as traders, so it is quite important that we get to learn and know how to trade with little risk and more discipline and patient method.
    Only if we will learn and understand and then see that taking too much risk as we trade is one thing that leads trades to losses. Evidently the reason behind that too much risk when trading is because traders are looking forward to make fast amount of money. Leveraging too much or over trading is one of the reason for major losses.

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  9. #18
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    All i know about the leverage is that, it is a good and bad way of trading at the same time, this is why traders will not just use leverage, they will use leverage based on the way they can trade the market with passionate skills that will help them. If traders are using good money and risk management with their leverage trading, there will not be problems in their account.

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  10. #19
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    Quote Originally Posted by wish View Post
    Trading with patient and good confirmation is just the best method of trading and it will save us some of the emotional stress. Leverage is a means of losing your money when you don't even know how the market works. Such a trader will be successful in the long run. So we will know how sever they might be too.
    In all one does in as much as we want to make money and become successful one thing should be known which is patient when we have that we have bought our way to success. Patient is the key to being successful, due to a patient trader knows the right thing to be done and the right time it has to be done as well . When we are patient we get to catch the right time to take on trade and when not to.

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  11. #20
    Trader famousfx's Avatar
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    It is very necessary for traders to be conservative in their trading, exercising patience while many trader would be so aggressive in trading at last a conservative trader would laugh and have a lot of profits, so why don;t we all adopt the system of being conservative so as to have rest of mind in every trade we take.

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