2014: The Battle for Survival

[Rashid_G.]

"The Brave do not live forever, but the cautious do not live at all"... Richard Branson

Neke.. Your braveness is uncommon but is necessary to get above average results. Problem is many see recklessness instead.. then again was Soros brave or reckless? The fine line between the two is if you manage the downside when the head goes crazy a little bit.

 

[kubek]

how can you be up/down 100k when your whole account reads 300k..looks like your money management is screwed...

 

[southall]

Neke really doesnt do money management, he is a bit like Jesse Livermore, and has wild swings in his equity.

 

[neke]

Neke really doesnt do money management, he is a bit like Jesse Livermore, and has wild swings in his equity.

Remind me again, what is 'Money Management'? I'm managing my own money. No???

 

[NoDoji]

Remind me again, what is 'Money Management'? I'm managing my own money. No???

Mrs. Language Person would like to interpret "money management is screwed" to have meant "risk management is skewed".

Mrs. Language Person would also like to respond to that poster by loosely quoting the ever-revered Warren Buffet: "If you can't handle a 40% drawdown you shouldn't be in the market."



Keep on growing those green crops, Neke!

 

[Rashid_G.]

=Warren Buffet: "If you can't handle a 40% drawdown you shouldn't be in the market."

I have always wondered if Warren was referring to position or Account draw-down? I think Munger actually mentioned 50% on Youtube..

 

[k p]

I have always wondered if Warren was referring to position or Account draw-down? I think Munger actually mentioned 50% on Youtube..

That's a good point actually.... Warren does actually say to also preserve capital, no? Isn't this rule number one? I can see this making sense in terms of a position, but a 40% drawdown on the entire account would be huge.

 

[blakpacman]

Neke's back!

 

[jajuanm2]

I been saying for years Neke was one of the best traders on this site and people just laughed. You are not going to see big gains without big drawdowns. The less you risk per trade the smaller your gains will be .

 

[newwurldmn]

That's a good point actually.... Warren does actually say to also preserve capital, no? Isn't this rule number one? I can see this making sense in terms of a position, but a 40% drawdown on the entire account would be huge.

Graham and Dodd investors don't see drawdowns as real. They see them as buying opportunities IF their fundamental thesis hadn't changed. Beekshire made some of its biggest investments in 2009 when their stock portfolio was down 30% and they were about to be downgraded because of their derivatives bet.