How much leverage are you comfortable trading in FOREX? -

Does anyone have any suggestions on a leverage limit? Many FOREX brokers allow up to 200:1 leverage. My trading strategy is to take just very small gains (3 or 4 pips at a time) and set the stop losses way out there just to avoid a total wipeout. I never trade on Fridays either and of course close out before the market closes. Because of the giant stop losses, I am only comfortable with around 20:1 leverage or maybe 30:1. In other words, with a $500 margin account balance, I would only consider buying 0.1 lots of EURUSD (10,000) at a time; 0.2 lots with $700; 0.3 lots with $1100 and so on... Does anyone out there use the same strategy as me and feel comfortable with higher leverage like 40:1, 50:1 or even higher? As you indicated, it is not just your leverage that you need to take into account...it is also your margin level that is important. When I am drawn back to my technical analysis days I usually use a leverage of 40:1 unless I have a high probability setup occurring (based on pivot points and fibs). In that case I might go as high as 100:1. Currently the majority of my Forex activity is based on conservative hedge trades (usually hedging the EUR/USD and USD/CHF). With my hedge trades I use a leverage of 400:1 and a margin of 10%. Hedging is awesome because the position can make profit regardless if the market goes up or down. I also get paid a daily interest payment, 7 days a week. I have an analysis of the daily performance of 5 different hedge strategies over the past 500 days if you would like to see it. And these were all at 400:1 leverage and never anywhere near a margin call. Paul I also, do a 200:1 leverage and usally take small gains at a time. Using the Mtpredictor s technical analysis Elliot Wave Principle software, Bsmtprediction provides Forex Traders with FREE access to AUD/USD, EUR/GBP, GBP/USD, EUR/USD, NZD/USD, USD/CAD, USD/CHF, EUR/JPY, GBP/JPY amp; USD/JPY daily currency forecasts through this website. At Any Time / Any Day (we ll straight away post the signals here in real-time if there s any triggered) 1 hour, 4 hours amp; daily time frame forecasts are published on this site. The predictions are good from the moment they are published until either it reached the take profit target, hitted the stop loss or another new prediction of the same currency amp; timeframe unveils on the same / following day. Essentially, the prices shown are for an unknown period.. That s why we encourage you to subscribe our FREE Google Groups newsletter to get the latest signal updates sent to your e-mail from the very 1st minute it surfaces the net.. Forex is too dangerous for my liking, but I know a professional Forex trader, that says most people get into trouble because of using too much leverage. So take that for what it is worth. Good Luck