The key is to use your morale items wisely and sparingly. For example I have Mantle of Wizardry. Gives +30% resistance to magic and spell damage and +20 mana. However it loses morale when killing humans and if your not a mage. Im a mage so thats not a problem, but for example when I went to islands of freedom, most of the fights there are versus human pirates and none of them except bosses even cast spells. Rather than leaving the armor on I swapped it with a non-living (non-moral) cloak that gives +3 INT. The spell resistance was useless vs pirates anyways they didnt tend to cast fireballs on me if u know what i mean. I put the cloak on for bosses, but even the bosses mostly used order and distortion spells like haste mostly so In hindsight i should have saved the moral and left on the cloak of +3 INT. The +20 mana was nice but its not worth having to supress the item over and over and besides +3 INT is nice too so I do fine. When used correctly though vs a hero that throws a lot of fireballs on your army this mantle was invaluable and should be equipped no matter if u lose a little moral or not.
Basically you should have a basic set of general purpose non living items that give decent bonuses for u to where most of the time. And then when a tough boss fight or hero fight approaches u can put on your good stuff and choose wisely to counter what they use. Also as long as your not losing moral feel free to wear the best stuff whenever possible. Just be smart about it. Dont wear wizards mantle when your not fighting wizards and killing pirates. Dont wear a snake ring when your killing tons of snakes in the swamps. Choose your gear based on the region your fighting in.
Hope that helps you guys.
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