Sep

24

Limit your losses, and gains and growth will take care of itself.

Asindu Drileba wonders:

Strategies for limiting losses?

1. Position sizing
2. OTM options
3. A friend of mine holds long VIX positions

Questions?
- What other strategies exist?
- What is best? 1, 2 or 3?

Zubin Al Genubi responds:

Those are all good strategies. Another way is to lower your expectation return targets in time or returns which in turn lowers loss expectations. In a competitive scenario this may or may not be acceptable but if you have enough, why take on more risk.

Larry Williams offers:

Once you set your stop loss, don't move it. Ever. Never.


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