Tag Archives: position sizing
Unless one is fully invested in a single stock or ETF, portfolio returns depend on allocation. In the case of trading, returns depend in addition on risk parameters. Although this sounds trivial, some economists and bloggers do not seem to understand … Continue reading
In the blogosphere and elsewhere one can find many articles about optimal position sizing and on maximizing equity growth via the use of fancy math, for example the Kelly ratio. Traders and investors should ignore such supposedly optimal methods of sizing positions … Continue reading
There are those who argue that panic and fear are responsible for most trader’s failures and for the fact that nearly 95% of them lose. But losers will not turn to winners if they see a psychologist. Losers will turn to winners if they are … Continue reading
This is what I could come up with today. Understanding this chart is half the battle.
This may be called “the year of the divergences”. Short-term divergences between key indicators and/or price are caused by volatility. For example, the 14-day Average True Range (ATR) of the S&P 500 Index was at 0.82% on March 21 but rose to 1.45% on June … Continue reading
This alert is about a signal in SPY for entry at today’s open and exit at the close and also about short signals in a Dow 30 stock.