I finally got around to reading about the blowup of Amaranth Advisors hedge fund. I’m astounded that some of these supposedly sophisticated hedge funds apparently have no clue about such basic concepts like money management, position sizing and ‘risk of ruin‘. The disaster at this fund is a great illustration of why I’ve always said [...]
Posted by 2 January 2005
Surviving Speculation
Here’s an article by Adam Hamilton about how to speculate successfully. It covers what should be familiar topics — money management, position sizing, trailing stops and expecting the unexpected. Here’s a snippet: This week I would like to discuss tactics that speculators can use to survive and thrive in a limitless environment. The markets could [...]
Posted by 3 June 2004
Expect the Unexpected
I was moved to do some research on Nassim Nicholas Taleb by some reader comments on my expectancy post. I began by looking at the reviews of his book, Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets, over at Amazon. Here’s just one of the reviews: If the prescriptions [...]
