Archive

risk management

Jul 27 When the Hedge Became the Trade JPMorgan called its London Whale book a hedge. The harder question was always simpler: what, exactly, was it hedging — and who could prove it? Jun 01 Phil Goedeker and the Trades You Should Not Be Taking Phil Goedeker's sharpest lesson is not the parabolic short. It is the review that found the trades that never should have been there. May 30 Mark Minervini and the VCP Setup That Gets Quiet First Mark Minervini's VCP is often copied as a breakout drawing. The useful version is more specific: leader, base, contraction, pivot, stop. May 30 Peter Brandt and the Position That Is Not an Opinion Peter Brandt is known for classical charts. In a FundSeeder interview, the stronger lesson is that a chart is only useful when it defines risk. May 29 Larry Hite and the Bet Small Enough to Lose Larry Hite's risk lesson is simple and hard to live with: the trade has to be small enough that being wrong does not become the event. May 29 Captain Condor and the Defined-Risk Trap The reported Captain Condor wipeout was not just an options story. It was a reminder that defined risk can still become account risk when size keeps growing. May 28 Tom Basso and the Trade That Lets You Breathe Tom Basso's old lesson is not that trading should feel exciting. It is that the system has to be boring enough to survive the next 10,000 trades. May 28 Jack Schwager and the Winning Trade That Teaches Nothing Jack Schwager's FundSeeder interview turns into a simple journal rule: do not grade the trade by the money first. May 28 Ed Seykota and the Trade That Does Not Care If You Are Right Ed Seykota made trend following sound simple, then spent years pointing at the part traders avoid: the feeling that makes them break the rule. May 26 The Stop Has To Be Where The Trade Is Wrong A useful stop is not the nearest painless number. It is the place where the trade has stopped being the trade. May 26 Linda Raschke and the Trade Small Enough to Repeat Linda Raschke's best lesson is not a setup. It is the desk work of keeping losses small enough that the next trade is still available. May 26 XIV and the Product That Shorted Panic XIV did not fail because volatility rose. It failed because the product was built to give inverse daily exposure to a market that can jump faster than holders can react.