Tag Archives: position sizing

Stock Market Returns Are Almost Never Realized Returns

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

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Practical Position Sizing Based on the Risk Ratio

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

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