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Episode 71 | Ben Sparham - stocks trader

A TRADER'S LIFE

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Avoid Leverage in Spreads or CFDs?

For me, I'm predominantly long only and I typically try to avoid leverage because I just feel yes, it can obviously increase the upside. For the way that I have structured my portfolios, it's not necessary because it just be increasing that downside potential as well. So this is one of the things that I think traders always have to weigh up and quite often they forget the other side of it. And a lot of people forget that when they're then having those down times or they're seeing those larger swings in the portfolio, it becomes very difficult for them to manage emotionally,. psychologically.

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