Novice forex traders chase 500:1 leverage despite daily moves of only 1-2%, betting they have an edge most don't. High leverage scales positions easily, but the market's low volatility makes it hard to profit consistently enough to live on.
A lot of beginner traders, they will look at Forex because of the leverage. Yeah, when you look at Forex, it's like 20:1 leverage. I don't know how much is it. Way more. Way more. Okay, 500:1. 500:1. That is insane, right? But do you have any edge? That's what, like, okay, you have the leverage, 500:1. Why do you have the leverage? Because it's very efficient. It's only moving 1-2% every day. So, but do you have any edge right there? Yeah, there are a lot of good Forex traders because it's very easy to size up on it, but only very select Forex traders. It's very difficult to make a living trading Forex because it only moves 1-2%, but you can size up exponentially because of all the volume in the forex industry.
