- Once you reach a few million under management, hiring a research staff to improve details is a good idea.
- Wait for momentum to build in one direction and get on the bandwagon. Expect to lose about two thirds of the time and so make sure your winners can pay for the losers and leave enough over to cover the rent.
- Using a single strategy on a single instrument is for people with either extreme skill or for those who simply have a death wish
- If we put the same notional dollar amount in each trade the portfolio would immediately be dominated by the volatile instruments and not much impact at all would come from the less volatile.
- Trend following: Buying high and selling higher
- Non professionals tend to spend an excess of time and energy on the buy and sell rules and neglect diversification and risk
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