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A Short Video explaining the Important Concept of Position Sizing and Risk Management "Never Risk more than 1% of you Portfolio on a single trade."

38,076 просмотров • 10 месяцев назад •via X (Twitter)

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One common reason why traders blow up is because of poor position sizing. In other words, how much do you bet on a trade. You can be right on direction 60% of the time and still lose everything if you size your positions poorly. One oversized trade can wipe out months of gains. This is why position sizing is a big part of risk management. Sandeep Rao - SEBI Reg. RA🖖 recently spoke to Tom Basso, one of the original Market Wizards, to discuss his approach to trading. I was listening to the interview and the one thing that stood out to me was how Tom's thinking on position sizing evolved over decades. He started simple: risk the same percentage of equity on every trade, inspired by Larry Hite's philosophy that every bet should be equal in terms of potential loss. But then came a silver trade with explosive volatility. Clients were calling, nervous about the wild swings. So he realized it wasn't just about the amount you could lose—it was also about the speed of movement. High volatility creates psychological stress that leads to poor decisions. So he added a second layer: volatility as a percentage of equity. Now he'd calculate both risk % and volatility %, then take the smaller of the two. Then came the third refinement: margin-to-equity ratios. Some markets have deceptively low risk and volatility but require high margin because of sudden jump risk. By incorporating all three factors, he never got caught overexposed. The result was a position sizing system that automatically scales down when markets get too volatile, protects against margin squeezes, and keeps portfolio risk in check. It's really interesting conversation. Link to the full interview is in the comments.

Nithin Kamath

59,213 просмотров • 7 месяцев назад

DR. PAUL THOMAS: “You are MORE likely to die from the VACCINE than from the DISEASE, this is true for EVERY single vaccine on the childhood schedule.” DR. SUZANNE HUMPHRIES: “If mandates were to STOP, these companies would CRASH. And that’s not going to be allowed to happen...” The statistical analysis of each vaccine... The risk of death from Polio is 1 in 1 trillion The risk of death from the Polio vaccine is 1 in 215K The risk of death from Diphtheria is 1 in 42.5 million The risk of death from the Diphtheria vaccine 1 in 76K The risk of death from Tetanus is 1 in 1.5 million The risk of death from the Tetanus Vaccine is 1 in 76K The risk of death from Pertussis is 1 in 2.3 million The risk of death from the Pertussis vaccine is 1 in 76K The risk of death from Measles is 1 in 106.5 million The risk of death from the Measles vaccine is 1 in 108K The risk of death from Mumps is 1 in 40.3 million The risk of death from the Mumps vaccine is 1 in 108K The risk of death from Rubella is 1 in 0/negligible The risk of death from the Rubella vaccine is 1 in 108K The risk of death from Chickenpox is 1 in 32.3 million The risk of death from Chickenpox vaccine is 1 in 202K The risk of death from Hepatitis-A is 1 in 1.6 million The risk of death from the Hep-A vaccine is 1 in 73K The risk of death from Hepatitis-B is 1 in 305K The risk of death from the Hep-B vaccine is 1 in 96K The risk of death from HIB is 1 in 1.5 million The risk of death from the HIB vaccine is 1 in 46K The risk of death from Pneumonia is 1 in 236K The risk of death from Pneumonia vaccine is 1 in 50K The risk of death from Meningitis is 1 in 822K The risk of death from Meningitis vaccine is 1 in 141K The risk of death from Influenza is 1 in 136K The risk of death from the Influenza Vaccine is 1 in 15K

Valerie Anne Smith

188,376 просмотров • 2 месяцев назад