I finally got around to reading about the blowup of Amaranth Advisors hedge fund. I’m astounded that some of these supposedly sophisticated hedge funds apparently have no clue about such basic concepts like money management, position sizing and ‘risk of ruin‘. The disaster at this fund is a great illustration of why I’ve […]
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Amaranth Advisors Hedge Fund Ruined by Ignoring ‘Risk of Ruin’
Posted by Michael in September 19th, 2006
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Posted in: Stock Market Tags in: Expect_the_Unexpected, Hedge Funds, Money Management, Position Sizing, Risk, Risk Management and Risk_of_Ruin
Surviving Speculation
Posted by Michael in January 2nd, 2005
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Posted in: Stock Market, Trading Techniques Tags in: Black_Swans, Exits, Expectancy, Expect_the_Unexpected, Money Management, Position Sizing, Risk Management, Speculation and Trailing_Stops
Here’s an article by Adam Hamilton about how to speculate successfully. It covers what should be familiar topics — money management, position sizing, trailing stops and expecting the unexpected. Here’s a snippet:
This week I would like to discuss tactics that speculators can use to survive and thrive in a limitless environment. The markets […]
Expect the Unexpected
Posted by Michael in June 3rd, 2004
Posted in: Books / Reading, Stock Market Tags in: Black_Swans, Books, Expect_the_Unexpected, Nassim_Nicholas_Taleb and Risk Management
I was moved to do some research on Nassim Nicholas Taleb by some reader comments on my expectancy post. I began by looking at the reviews of his book, Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets, over at Amazon. Here’s just one of the reviews:
If the […]
