After having sat on the sidelines for a period, yesterday a number of signals triggered suggesting it was time to reengage. Unfortunately, during volatile periods there are moments like today when one will take some lumps, but 3 or 4 won't be too damaging when trading small. Quartering account size is a solid risk management strategy during these periods. Should the market prove you incorrect the losses will be below average, and if the market proves your correct there is something to build off of should stocks continue to align with one's time horizon again.
Wednesday, August 14, 2019
How Many Lumps Do You Want
After having sat on the sidelines for a period, yesterday a number of signals triggered suggesting it was time to reengage. Unfortunately, during volatile periods there are moments like today when one will take some lumps, but 3 or 4 won't be too damaging when trading small. Quartering account size is a solid risk management strategy during these periods. Should the market prove you incorrect the losses will be below average, and if the market proves your correct there is something to build off of should stocks continue to align with one's time horizon again.
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