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:

About Post Author

Cullen Roche

Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds. Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances. He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.

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