About Day Trading: Leverage Is Good, and More Leverage Is Very Good

Day Trading In the Spotlight | More Topics |   from Adam Milton For some reason, I continuely come across articles and comments that state that leverage is risky, and that new traders should not trade highly leveraged markets. This is completely wrong. Leveraged trading is no more risky than non leveraged trading, and in many cases using high leverage can reduce risk. This week's trading newsletter includes: - a discussion of leverage and why highly leveraged markets are preferred by professional traders, - a profile of the Nikkei 225 stock index and futures market, - and the weekly economic calendar with volatility expectations. Good trading :-)   In the Spotlight Leverage Is Good, and More Leverage Is Very Good Leverage is the ability to trade a large position (i.e. a large number of shares, or contracts) with only a small amount of trading capital (i.e. margin). Every so often, I read articles or blog comments that suggest that trading using leverage is risky, and that new traders should only trade cash based markets (such as individual stock markets) and avoid trading highly leveraged markets (such as the options and warrants markets). I disagree with this completely ... find out why leverage is good              More Topics More Market Profiles ... Nikkei 225 Market Profiles The N225 futures market is based upon the Nikkei 225 stock index, which is the primary stock index of the Osaka Securities Exchange (OSE) in Japan. The Nikkei 225 stock index consists of two hundred and twenty-five Japanese companies, that are traded on the Osaka and Tokyo stock exchanges. The Nikkei 225 stock index is an equal weighting index, designed to represent the overall Japanese stock market ... find out about the Nikkei 225 stock index and futures markets   Economic Calendar With Volatility There are several news releases from each region this week (US, Europe, and Asia). The US has six high volatility news releases, Europe has five high volatility news releases, and Asia has six high volatility news releases. Markets from all three regions will probably experience high volatility and significant price movement throughout this week ... view the economic calendar     Sponsored Links   Best Moves in a Bad Economy Save & Invest the Right Way Find out how to beat a bear market, make smart choices, and keep your cool even when the economy is unpredictable. Day Trading Ads Forex Day Trading Live Stock Market Stock Trading Investment Software Forex News Advertisement     Visit Related About GuideSites: Search About      Sign up for more free newsletters on favorite topics. You are receiving this newsletter because you subscribed to the About Day Trading newsletter as lemmetry@GMAIL.COM. If you wish to change or remove your email address, please visit: http://www.about.com/nl/usgs.htm?nl=daytrading&e=lemmetry@GMAIL.COM About respects your privacy. Our Privacy Policy. Our Contact Information. 249 West 17th Street New York, NY, 10011 © 2008 About, Inc.