Surviving Speculation
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 could not care less whether you or I win in the end or go bankrupt speculating, so you have to actively and continuously protect your own capital. You can approach speculating in such a way that not even multiple adverse unforeseen events can threaten your ability to stay in the game.
The wrong way to speculate is the way most new speculators …
tagged: Black_Swans, Exits, Expectancy, Expect_the_Unexpected, Money Management, Position Sizing, Risk Management, Speculation and Trailing_Stops
