LEVERAGE

LEVERAGE

One of the biggest advantages and risks of Forex trading is leverage.

Investors use leverage to considerably increase the returns on their investments. However, leverage also increases losses, as it magnifies the movements on the currency market – both upwards and downwards. That’s why leverage is often called a “double edged sword”.

Leverage will allow us to take advantage profitability when the favor goes with us. But using leverage without proper education will be very risky and we might incur a bigger losses due to its multiplier effect.

As much as possible our aim is to be in the game for longer time, investment is not a competition and as much as possible we earn reasonable amount and consistent enough is favorable and we can still trade more in the future. We might start doing x5 to x10 as a starting point and eventually increasing it once we fully understand how and when to use it.. On top of possible losses we also pay overnight fees. We all make mistakes but it is not too late to make adjustments and lower the risks in our future trades. Greed always lead us in troubles.

Example of possible scenario:

OIL

Educational insights only not an investment advice, exercise due diligence.

As earlier assumed , from the resistance area of 58 and 59, price of US Oil retraced and now sitting at 38.2 % fibo level as of this time still bears are in control. If the decline will continue we might see touching it at 54 level and deepest price support might be in 53.80.

Just an assumptions , price might be affected by the plan Aramco IPO , Iran discovery of biggest oil reserve and also output from OPEC. Not to mention also US have also technologies to extract oil better. Nevertheless based on the current trend still going down and lets see if reversal is coming and eventually breaking the 58 to 59 barriers.

GOLD

Educational insights only not an investment advice and exercise due diligence.

Nov. 20, 2019

After hitting the resistance last Nov. 6, eventually declined on the following day bulls are overpowered by bears .We estimated that rebound will be at 61.8% approximately at 1458 price range and indeed rebounded As of this time, bulls trying once gain to break the barrier at 1493. If bulls will be successful breaking the resistance. we might see a comeback at 1500 level.

For overall market sentiments still focus in China -US trade war and investors are still worried if the two giants eventually come up a trade pact.Seems they are still in stalemate and another issue would be the approval of resolution from US senate with regards to expression of freedom in HongKong, it will surely anger China and may consider this a direct intervention by US in China political and economic affairs. Nevertheless we only hope that they will see a neutral ground and end the chaos in HongKong peacefully.