Categories

Pragmatic Capitalism

Practical Views on Money, Finance & Life

THE IMPORTANCE OF POSITION SIZING

Position sizing might be the most important function of risk mangement in the investment world.  What allocation do I place on any particular stock in my portfolio?  How much commodities and currencies do I want to own and how are they correlated?  What is the potential draw down with this particular asset allocation?  Position sizing is the key.  Unfortunately, position sizing requires a great deal of skill, common sense and experience.  Hopefully this great read helps:

Cullen Roche

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC.Orcam is a financial services firm offering asset management, private advisory, institutional consulting and educational services.He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance and Understanding the Modern Monetary System.
Cullen Roche

Latest posts by Cullen Roche (see all)

Did you have a comment or question about this post, finance, economics or your love life? Feel free to use the discussion forum here to continue the discussion.*

*We take no responsibility for bad relationship advice.