Welcome to our Free Course
Enhance your trading knowledge by studying our legendary free online program!
  • Beginner
  • Intermediate
  • Advanced
  • Completion
  1. Beginner
    Early Stages for Beginners
    8 Topics
  2. Forex Terminology
    11 Topics
  3. Margin & Leverage
    2 Topics
  4. Intermediate
    Identifying Scams
    2 Topics
  5. Brokers for Beginners
    5 Topics
  6. Technical Analysis
    13 Topics
  7. Advanced
    Using Indicators
    6 Topics
  8. Technical Analysis (Part 2)
    8 Topics
  9. Market Structure
    5 Topics
  10. Fundamental Analysis
    9 Topics
  11. Completion
    Risk Management for Beginners
    8 Topics
  12. Psychology for Beginners
    7 Topics
  13. Personal Psychology Questions
    2 Topics

Over-Leveraging

Over leveraging is one of the leading causes of many blown accounts. We discussed leverage earlier on within the free course, but let me give you an example that ties in with risk management.

If you have $100.00 in your account, using a .10 lot size can be very risky. With a 30 pip stop-loss, you are risking 30% of your account. Three bad trades will leave your account balance at close to nothing! You want to make sure your lot size aligns with your future trading goals. Walk into a trade knowing what it is that you’re risking, before looking at the reward. If you’re not okay with taking a loss that big and it puts you under financial stress, you are over-leveraging.