If the discount to fair value changes, we will adjust
the position size accordingly.
I believe it is acceptable not to use a hard price stop - loss if you have a hard time stop - loss (trades are closed at the end of the week / day) and you calculate
your position size accordingly to volatility risks.
A trader does not have to risk more on higher time frames, they can simply adjust the trade
position size accordingly.
You need to consider how much disposable income you have to trade with right now, and then decide how much money you think you are emotionally comfortable with losing on ANY one trade, and then adjust
your position size accordingly.
Not exact matches
If you trade a very large account (and
accordingly large
position size), consider an average dollar volume above 80 million to be extremely liquid.
Accordingly, the Strategic Growth Fund is now back to a fully - hedged investment stance - meaning that the Fund continues to be fully invested in a broadly diversified group of stocks that appear to have some combination of favorable valuation and favorable market action, while at the same time, the Fund carries an offsetting short
position of equal
size in the S&P 500 and Russell 2000 indices (using option combinations that mimic short futures contracts) intended to mute the impact of broad market fluctuations on the Fund.
if the
position size gets scaled down
accordingly the monetary risk can be kept same and still one can participate in the bigger moves.
However, we factor this into the range of value outcomes and
size our
positions accordingly.
You must adjust your
position size and stop losses
accordingly.
«Ultimately you'll be right and you'll be wrong, but you want to make sure that [your
position] is
sized accordingly where, even if you're wrong, your portfolio does not suffer to a point where you can not recover from the losses.»
Bank loans and emerging - market debt offer attractive yields but come with additional volatility relative to traditional bonds, so investors should consider the tradeoff and
size positions accordingly.
YES and
positions need to be
sized accordingly.