Category: Position Sizing
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Ed Seykota on Position Sizing
Ed Seykota was asked: “If you could give me ten rules to consider with respect to position sizing what would they be?” He replied: 1. Bet high enough to make meaningful profits when you win.… Read More
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Risk comes from not knowing what you are doing so wide diversification is only required when investors are ignorant.” – Warren Buffett
Sourcce: http://www.azquotes.com/quote/1259463 Read More
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Actively Managing Investment Risk
The global market declines in early August offered a fine example of the kind of conditions that cause me to exit my long positions and end up in cash. For me, this is a normal part… Read More
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Absolute Return: an investment objective and strategy
Absolute Return in its basic definition is the return that an asset achieves over a certain period of time. This measure looks at the appreciation or depreciation (expressed as a dollar amount or a percentage).… Read More
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The Mistake is Not Taking the Loss: Cut Your Losses and Move on
One of the keys to managing investment risk is cutting losers before they become large losses. Many people have difficulty selling at a loss because they believe it’s admitting a mistake. The mistake isn’t taking… Read More