Everyone knows leverage acts as a double edge sword. Without having a precise knowledge of risk management policy, you are most likely to lose your entire investment by using a leverage trading account. Being a new trader in the Forex market, you need to understand the fact, trading is all about managing your risk exposure. You might have a huge amount of trading capital, still, there is no assurance you will make a profit from this market. To protect your trading capital, you must learn to use the leverage efficiently. To know more about the use of leverage trading account, read this article very carefully.

Trading with a small account

You can’t make consistent profit in the Forex market, without learning to use the leverage effectively. The rookie traders often make a huge profit by using the leverage trading account. But do you think you can develop your trading career based on the aggressive trading method? It’s true, a high leverage trading account will give the power to trade with a big lot but this also increases your risk exposure to a great extent. Unless you know the nature of this market, you should never trade with a high leverage trading account. Open a demo trading account with Juno Markets and see how things work in real life. Never make thinks overly complex even though you will have extensive knowledge of the trading profession.

Know your risk tolerance level

If you intend to become a fulltime trader, you must know your risk tolerance level. Some retail traders can bear 2% loss in each trade and some can bear 5%. Risk tolerance level greatly depends on the trader’s mentality. Based on your risk tolerance level, you need to craft a perfect risk management policy. Once you feel confident with your trading strategy, find the best ib introducing broker and start trading the market with real money. Being a new trader, you need to understand the fact, you might have to lose a few trades in a row. But this is not the end of your trading career. Trade with managed risk and effectively use the leverage so that you won’t have to lose a big portion of your investment.

Educate yourself properly

To become a better trader, you must educate yourself properly. Without having a precise knowledge of the technical and fundamental factors of this market, you can’t determine the optimum leverage required for your trading strategy. Being a new trader, you might get confused but there is nothing to worry. Use the demo account see how things work with different leverage. Though high leverage trading account can dramatically increase your profit factors in the hands of novice traders, it can also be the key threat to blow up the account. Before you choose your account leverage, you can also seek guidance from the professional traders at Juno Markets. Take advice from the successful traders so that you can do better at trading.

Learn to protect your trading capital

Without having a balanced risk management policy you can’t protect your trading capital. You might trade with 1:10 leverage but this doesn’t mean you will never blow up the trading account. Making consistent profit in the retail trading industry is all about finding the perfect trades. You have to limit your risk exposure in every possible way to protect your investment. You might have access to 1:100 leverage trading account but this doesn’t mean you can make a huge profit from this market by taking excessive risk. Regardless of the quality of your trade setup, you should never risk more than any amount which you can’t afford to lose. Follow the conservative trading technique and you will eventually do better at trading. Forget about the aggressive trading strategy and you can change your life by trading the currency market.