High leverage kills Trading account
Most professional traders trade one lot of Nifty Future for every 1.5 Lakh in their trading account.
Most of Retail Traders trade one lot of Nifty Future for every 50K-60K in their trading account
90% of Retail trader blow their account in less than 1 year. One of the main reason for losing money is Leverage.
Most of Brokers in India will allow you to open account and trade Futures and Options with just 20-30K capital also. They give leverage of more than 10-20 times and Retail traders feel happy to carry such big position and make money. But when the market turns opens gap down like it did today most of traders blow their account as they do not get chance to exit also.
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Most of Retail Traders trade one lot of Nifty Future for every 50K-60K in their trading account
90% of Retail trader blow their account in less than 1 year. One of the main reason for losing money is Leverage.
Most of Brokers in India will allow you to open account and trade Futures and Options with just 20-30K capital also. They give leverage of more than 10-20 times and Retail traders feel happy to carry such big position and make money. But when the market turns opens gap down like it did today most of traders blow their account as they do not get chance to exit also.
The number one reason new traders fail is because they are undercapitalized from the start and don’t understand how leverage really works.
What is Leverage?
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posted by Bramesh at
4:05 PM
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