At times when you are in a DD, you get some of your strongest signals and some require heavier size and even after adjusting for reduced equity the position still seems bigger than usual...and then it's easy to think,it's a bet the ranch trade to recover the DD , but it's not..... It's hard to explain this to others and it is frustrating too.
riskarb's trading journal
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At times when you are in a DD, you get some of your strongest signals and some require heavier size and even after adjusting for reduced equity the position still seems bigger than usual...and then it's easy to think,it's a bet the ranch trade to recover the DD , but it's not..... It's hard to explain this to others and it is frustrating too.
Agree 100%.
The smaller trades [<250k] are usually based upon a principle of trading the distro as often as possible. There isn't any bet-variation attributed to those... it's table minimum, so to speak.
Anything $500k or larger is usually based upon system signals or a a compelling discretionary-trade. This one is a combination of both. So far, so good; +8 handles from signal.
Anything =/> 30d is always a mil or larger. The risk is VaR; in this case, $1mil at the barrier and +expectancy at >2sigmas up.
I think the best investors are true traders. The worst are Wall streeters on the sales side who think they understand the markets but don't. These folks are atcually worse than mom & pop on the street who know they don't know. Actually mom & pop aren't bad. If you fully disclose the risks to them, and communciate with them regularly they can be long term sticky money. Even stickier thna the so called "sophisticated investors"
Wish you well, pal! Be well.
Wish you well, pal! Be well.
Pax, RJ O'Brien or Penson are the three I hear a lot about.. assuming I listen 
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