This article is taken from the Forex Journal (July 2008 issue)
The author, Richard Morrish, is Head of M I G’s Research Department. He has been a trader for the last 23 years for international banks, hedge funds and himself. A regular contributor to CNBC for the last five years, Richard has also lectured on global macro hedge fund strategy and technical analysis. He has traded all asset classes from Forex to bonds to commodities. He is regarded as one of the leading technical trading proponents in the United Kingdom and one of the most accurate predictors of the markets.
- Richard Morrish discusses the benefits of ‘choosing wisely’ when using leverage as a trading tool. Leverage is a doubleedged sword that can create impressive gains very quickly or devastating losses in the same short time.
Walter Donovan: “We’re only one step away.” Indiana Jones: “That’s usually when the ground falls out from beneath your feet.”
Lines taken from “Indiana Jones and the Last Crusade” (1989)
I doubt that Indiana Jones had much time for trading the financial markets. Those of us that do trade are driven to do so by the hope of discovering potential treasure, lured by the lustre of some financial ‘Holy Grail.’ Although the risks that we face in trading may not be quite as apparent as a room full of poisonous snakes or the odd Angel of Death encountered by Dr. Jones and his friends, we must be aware of the choices we make and the risk that each choice entails. We must look to “Choose Wisely.”
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