Understanding Leverage

This article originally appeared in the September 21, 2006 edition of Tradersmedia’s TraderSavvy Newsletter as “My Super Secret Trading Technique – Part I.”

Throughout my professional career, I have taught trading seminars and webinars, written newsletters and advisories, and generally spoken to a lot of people about trading. The most common topics people want to discuss are what indicators do I use and how do I time an entry. While these are important things to consider, they are not actually the end all and be all of trading. Probably the least common question is the question that I feel is most important: what about money management and risk?

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Chad Butler is president and a trading principal of Clarke Capital Management, a Commodity Trading Advisor (CTA). In the arena of trading, he is in demand as a published author and featured speaker.