Using 1:500 Leverage? Risk Management Formula to Avoid Account Blowups?

Описание: #ForexTrading #TradingMentorship

Most traders learn strategies, but ignore risk management—and that’s exactly why accounts get blown when leverage is high.
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In this video, you’ll understand what leverage really means, how to choose the right leverage for your capital, and how to control risk using position size + stop-loss + a consistent risk-to-reward plan.
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What leverage actually does (simple meaning)
Leverage lets you control a bigger position with smaller capital (example: 1:100 or 1:500), so profits can grow faster—but losses also increase at the same rate.
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That’s why leverage is never the “strategy”—it’s just a tool, and the real game is controlling how much you can lose per trade.
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The real mistake: lot size not matching capital
In your example, a trader with around ₹50,000 trying to take 1 lot is exposed to a loss that can wipe the account before the setup even plays out properly.
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Instead, the focus should be: “If my SL hits, can I accept the loss?”—then set quantity/lot size accordingly (your script suggests smaller sizing like ~0.25–0.30 lot with higher leverage for smaller capital).
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Stop-loss + win rate + R:R (how traders stay in the game)
Stop-loss is not optional—it’s part of professional execution, because no entry is right 100% of the time.
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Even a solid strategy might have only ~60–70% accuracy, so you must plan trades so winners pay for losers (your script stresses aiming for around 1:2 risk–reward instead of constantly switching strategies after a loss).
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Best trading sessions (and why many beginners lose)
Your script highlights that London and New York sessions tend to respect the moves better, while the Asian session can trap new traders through liquidity grabs and fast reversals.
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You also mention that ICT-style concepts like FVG (Fair Value Gap) and Order Blocks can work particularly well during London/NY timing windows.

#RiskManagement #Leverage #PositionSizing #DayTrading #SmartMoneyConcepts #ICT #FVG #OrderBlock #LondonSession #NewYorkSession #XAUUSD #GoldTrading #TradingPsychology