I don’t understand what that fuss is all about?Why should somebody loose money with high leverage, if someone use strict money management???
e.g. 5000$ account risking 3% per trade with 50 pips SL you can open 1 trade with 0.35 position or more position all together up to 0.35 lot.
With leverage 1:200 broker will block 175$ margin on your account.Still plenty of free margin left.Can you you open another position?
No,because you will violate money management(MM) rules.
Can you lost your money,because of high leverage? No,if you stick to MM rules,but if your position will be profitable and you will lock your profit,you can let it run for higher profit and you can open another position without violating MM rules.
With with leverage 1:20 it will be 1750$ blocked in margin and possibilities of opened trades are much lover.
I have 5000 dollars for trading.I will make deposit of 1000$ to my broker and keep 4000 on side.I can still apply same MM rules with 1:200 leverage account and keep my money at home.No worries about black swans,bad brokers etc,etc.
With lower leverage,I had to put all my trading money to broker and keep them there to hold margin requirements.
So is it high leverage bad?I don’t think so.It is a bad trader’s decisions,why people are loosing money.
Whether you think you can, or you think you can’t,you’re right. H.F.