Do we need to use effective leverage?

[mno3195]

Hi folks
I have been told that I need to use effective leverage which is less than1:10 on every trade to limit the risk
Is leverage calculation really in need since I already calculate my position size by predertimined consistant risk(2 percent of total capital)/SL distance.In this formula, position size is determined by Distance of entry price and SL,sometimes this distance could be relatively small based on candlestick range shown on PA,and hence causing overleveraging (exceed 1:10) and I found this type of set ups often don't play out due to relatively small SL got hit although these SL all are placed based on logical place so I am thinking to use so called effective leverage as a additional filter to determine my position size, what are your thought?
Thanks

 

[tjenarvi]

1:10 is already the maximum as I know to minimize your positions...
when you got limited, there is no way for you to overtrading, in which in will end up in a "grave stone" of your account..

 

[TheForexGuy]

1:50 is probably the minimum comfortable level you would need for sensible trading. 1:100 would be optimal.

I know most US brokers don't offer more than 1:50.

 

[hafizhanif84]

i get 1:500 leverage but still use money management..so im not using the high leverage at all

 

[tjenarvi]

doesn't really matter how high is the leverage, we must always use good risk position

 

[davidson333]

Leverage is an important aspect of Forex trading. My broker alpari.com gives me opportunity to trade with leverage 1:500.Also The Alpari PAMM account service allows investors to earn on Forex markets with the assistance of managers assigned to help them.