Using High Leverage (to Win Big) With a Small Position Size! 🔱⚡

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Using high leverage with a small position size? High leverage - high risk? Why do some traders like high leverage? Is it possible to trade with high leverage while limiting the risk? Does that make sense? This is a question we received from a viewer:
Forex Student •
Would you possibly recommend high leverage with a very small position size? I can’t get my head around how leverage is so risky of people place a stop loss equivalent to 1% of their account size.......I don’t see why you can’t have a stop at say 1 x atr and have a small position size within that. Can you explain or elaborate on whether what I am saying makes sense lol as I’m only a year into studying this and really wanna knuckle down with it for 2020.

This is a good question - we often talk about leverage being a bad thing. Actually, the issue comes with the risk you are taking. If you look at leverage as a tool and capital at risk as a completely separate metric things start becoming clearer.

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