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.”
General Risk Warning for stocks, cryptocurrencies, ETP, FX & CFD Trading. Investment assets are leveraged products. Trading related to foreign exchange, commodities, financial indices, stocks, ETP, cryptocurrencies, and other underlying variables carry a high level of risk and can result in the loss of all of your investment. As such, variable investments may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall Witbrew LLC and associates have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to investment trading or (b) any direct, indirect, special, consequential or incidental damages whatsoever.