3: Using Too Much Leverage
Overleveraging is trading too large a position size relative to your available margin.
Even a small market move against you can be enough to cause an overleveraged position to be liquidated for insufficient margin.
This common no-no is made more tempting by the generous leverage ratios available with some online forex brokers.
Just because they offer you 100:1 or 200:1 leverage does not mean you have to use it all. Don’t base your position size on your maximum available position.
Instead, base your position size on trade-specific factors such as proximity to technical levels or your confidence in the trade setup/signal.