In life there are factors you can and cannot control. You have no control over investment markets. What you do have control over is the discipline you apply to the allocation of your capital to those markets.
ETPs have attracted a massive amount of investors’ funds worldwide. Something like US$2–3 trillion worth of assets are invested across thousands of funds around the globe. These products are not a passing fad.
I would like to share with you what I’ve learnt from 30 years in the investment business. Hopefully this information assists you in making better decisions on how to best manage your financial affairs in the challenging times we face.
Options can be a great tool to put in your box. But you need to know how to use them. Although there are just two types of options — a call option and a put option — they can be used individually, or combined to create dozens and dozens of investment strategies.
Intuitively, these questions make perfect sense — buy when the market is rising; short when it’s falling. But it isn’t always that simple.
Take a moment to think about them. I want you to consider which words best describe trading.
A trailing stop is the best way I know to manage exits. It can give you both the discipline and confidence to stay the course.
Trading certainly qualifies as complex. Those who think it’s simple typically have short careers. Trading for these people is no different to visiting a casino.
To kick things off in 2016, I’m going to run through some of the different ways that investors can manage their trades. I’m talking about risk management.
If you do trade the short side, I suggest having a portfolio of shorts. This makes it more likely you’ll get a result similar to Quant Trader.