Disadvantages and advantages , difference between stock trading and forex trading - page 9

 
Yuriy Asaulenko:

With or without leverage, absolutely nothing changes. And even the risks in terms of money are the same.

You bought a 100k asset with leverage and I bought it without leverage. If the asset fell by 10% - both you and I will lose 10k. So, tell me, which of us has more risk? ))

They came up with some nonsense, and repeat after each other without thinking.))

But why do you need leverage? You'll be tempted to average, while I won't. You'll get a profit, and the instrument will go lower, then you'll average once again, and so on to the stopout.

Why else would there be so many losers in the Forex market, leveraged games?

 
Yuriy Zaytsev:

But why do you need a leverage? You will be tempted to average, while I won't. You'll get a profit, but the instrument will go lower, then you'll average again and so on till the stop-out.

I think this is why there are so many losers in the Forex market, games with leverage.

We do not deal with those who lose, but with the leverage ~ risk. Why would that be?

Well, in the example you have leverage, not me.) You tell me not who has what temptations, but who has more risk in this particular trade?

 
Yuriy Asaulenko:

Well, in the example, you have the leverage, not me.) You tell me not who has what temptations, but who has more risk in this particular deal?

Yuri, I understand what leverage is. The risk is the same for us, as long as we both work with our own money. The question is, why do you need leverage? So you can enter on credit? Suppose you enter, and the stock goes down for five years.


And then tell me who has the higher risk, provided you do not catch the reversal, playing with the leverage.

 
Yuriy Zaytsev:

Yuri, I perfectly understand what leverage is. The risk is of course the same. The question is why do you need leverage? To be able to enter on borrowed money? Suppose you enter, and the stock goes down for five years.

Well, only short-term games are played with leverage.) On forex, no one in his right mind will play for a long time.

And it makes no difference for short-term games, with or without a leverage. The risk does not depend on the leverage or its size. It seems we have already agreed that the risk is determined only by the size of the position. And if not according to Julio Sombrero, then you should not get into such positions, neither with leverage, nor without it.)

 
Yuriy Zaytsev:

And then tell me who has a higher risk, assuming you don't catch the reversal by playing the shoulder.

It's the same, it makes no difference. The degree of risk depends only on your subjective attitude to losses.

 
Yuriy Asaulenko:

It's all the same, whatever. The degree of risk depends only on your subjective attitude towards losses.

No doubt, as long as you don't use it, it makes no difference. And if you don't use it, why... do you need it?


But in practice, if you have it, they start using it, which is why there are so many dead bodies.

 
Yuriy Zaytsev:

no doubt, as long as you don't use the shoulder, there's no difference.

Well, okay. You and I are twin brothers, with the same income-expenses, and even the same name. We decided to play in the market, we agreed that we would make all trades the same way, each in his own account. I took 100 thousand to the market, and you agreed with the broker to leverage 10 thousand and you took only 10 thousand.

In the first deal, we lost 10 K. You`ve lost your deposit - what a woe - 100% loss.(( As a result, both of us have replenished our accounts with 10 K.) Want to prolong the deal, bring more money to the deposit, no problems. I have 100 thousand dead weight on the deposit, and you have free funds).

I think you don't have to go on. There are no increased risks. And the loss of the deposit turned out to be nothing at all.)

 
Yuriy Asaulenko:

Well, okay. You and I are twin brothers, with the same income-expenses and even the same name. We decided to play in the market, we agreed that we would do all the trades the same way, each in our own account. I took 100 thousand to the market, and you agreed with the broker to leverage 10 thousand and you took only 10 thousand.

In the first deal, we lost 10 K. You`ve lost your deposit - what a woe - 100% loss.(( As a result, both of us have replenished our accounts with 10 K.) Want to prolong the deal, bring more money to the deposit, no problems. I have 100 thousand dead weight on the deposit, and you have free funds).

I think you don't have to go on. There's no increased risk.

Yura, again, I understand leverage.

But we'll come to an agreement, you have 100k and I have 10k, use 10 lots and I'll repeat it with 1 lot, i.e. 10 times less. If you don't pull out, I will repeat after you too :) .


If you have 100K and I have 10K, our profits will be different, but the percentage income will be the same :)

 
You still haven't answered the question of why you need a shoulder if you don't use it.
 
Yuriy Zaytsev:

Yura, once again, I understand leverage.

But then we'll come to an agreement: you have 100k and I have 10k, enter with 10 lots and I'll repeat with 1 lot.


If you have a 100 K and I have 10, then our profits will be different, but the percentage income will be the same.

I may not be able to earn 10 lots for 100,000 because I'm too big for my feet, and you may not be able to earn it either - we're twins, you and I. But I'm such a jerk, and I think that the risks are big with leverage. But you don't, and you're doing well and have another 90 thousand available - you can buy a greyhound puppy). Our positions are always the same, and the risks are the same. And all these percents of deposit are nothing. I have a 10% profit and you have as much as 100% - I get jealous.