Comments on: The remarkable power of remarkable people http://www.scholarsandrogues.com/2008/08/27/the-remarkable-power-of-remarkable-people/ Think. It ain't illegal yet... Fri, 10 Feb 2012 03:16:41 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jeff Watson http://www.scholarsandrogues.com/2008/08/27/the-remarkable-power-of-remarkable-people/comment-page-1/#comment-51991 Jeff Watson Wed, 27 Aug 2008 17:22:58 +0000 http://www.scholarsandrogues.com/?p=3326#comment-51991 Any margin is a double edged sword. If one is correct when using a great deal of leverage, unimaginable wealth can be the result. A single mistake while highly leveraged can put a huge dent in one's bank roll. I personally use about 5X margin, and hedge all of my trades with options. The funds and banks that use 100X margin are courting disaster, and are the reason of the financial melt down. The economic system can't handle all of this leverage, and that's why we're experiencing such volatility. The necessary unwinding of all of the leverage and carry trade is causing the market fits, but is nevertheless presenting excellent trading opportunities. Jeff Any margin is a double edged sword. If one is correct when using a great deal of leverage, unimaginable wealth can be the result. A single mistake while highly leveraged can put a huge dent in one’s bank roll. I personally use about 5X margin, and hedge all of my trades with options. The funds and banks that use 100X margin are courting disaster, and are the reason of the financial melt down. The economic system can’t handle all of this leverage, and that’s why we’re experiencing such volatility. The necessary unwinding of all of the leverage and carry trade is causing the market fits, but is nevertheless presenting excellent trading opportunities.

Jeff

]]> By: Ubertramp http://www.scholarsandrogues.com/2008/08/27/the-remarkable-power-of-remarkable-people/comment-page-1/#comment-51988 Ubertramp Wed, 27 Aug 2008 16:53:59 +0000 http://www.scholarsandrogues.com/?p=3326#comment-51988 Excellent post. Excellent post.

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