A coulple of excerpts from the book "Inside the House of Money". Billion $ Fund managers. A number Vic wont see at this rate. So are you still saying a predetermined "I am wrong" stop loss level is not needed? Are these 2 Elephants wrong??? Does Vic Run his losses ? Are these guys below full of SH**?
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The stop-loss is by far the most important aspect to a trade,'' says John Porter, who runs Barclays Plc's cash positions. By setting a limit on how much money a trade is allowed to lose, ``you'll never blow up.''
As the hedge-fund industry matures, it may be sowing the seeds of its own destruction. Investors are becoming less willing to take big risks to make big money.
Club Selection
Drobny saves the best until last. His final interviewee is identified only as ``the chief investment officer at a several billion dollar hedge fund within the asset management unit of a bank.'' This last chapter crackles with acumen and flair, aided perhaps by that guarantee of anonymity.
``In trading, like golf, it's how you play the bad shots that really matters,'' the trader says. ``Recognizing when you're right is as hard for some people as recognizing when you're wrong. I find it comical to see people cut their profits and run their losses, but it happens all the time.''
