Previous chapter: Chapter 10
Next chapter: Chapter 12
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... he stock market fluctuates randomly until reaching that point. The market may rise by one percent before falling by three and rise by two before falling by two. Then, in a second, the market collapses as investor fear reaches a tipping point. That’s why trading skills become more important than strategy as the leverage ratio becomes higher.


(EN: Leverage results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk ...

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