This is an update to the post I made back in 2006. What I do hasn’t changed much but some of the tools have changed over the years. In short, the changes are: I’ve changed brokers/trading platforms — a couple of times. Schwab shut down Cybertrader and sent me scrambling to find a new place [...]
Posted by 11 February 2009
Tight Stops and Risk/Reward Ratios
Posted by 20 September 2008
Picking Your Spots When Selling Short
“Nobody makes money in a true bear market, not even the bears“ | The action this week got me thinking that I need to write a Duru-like missive on shorting. But since I don’t have a Ph.D you’ll just have to suffer through the following rant which I’ll try to keep relatively short. Yesterday Howard [...]
Posted by 19 September 2006
Amaranth Advisors Hedge Fund Ruined by Ignoring ‘Risk of Ruin’
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 5 September 2006
Position Sizing Q & A
Here are my responses to the comments left on last week’s “position sizing considerations” post: nonadamas wrote: 1. What about equipment, ISP failures, do you always write down your trades? 2. What kind of backup set-up do you have? 3. Brokerage problems, problems at their site or with their people making errors? When I started [...]
