Category Archives: Position Sizing
I got an interesting question earlier this week while in Las Vegas where I was speaking at the MoneyShow… what works best right now?
Usually, that’s a question related to which specific stocks, bonds, ETFs or other funds you want to buy. But in this case, the person asking wanted to know what kinds of investment methods work best given current market conditions and how you adjust to all the volatility gumming up the works.
That’s a savvy question, especially since there’s a very counter-intuitive answer.
Asking which stocks are “best” is only half the battle when it comes to big profits. To really hit the home runs you and I both know are out there, you’ve got to know which methods work best and when to use them.
Right now, for example, the markets are completely dominated by tweet-driven trading. This favors day traders and the institutional big boys because it caters to the short-term trading methods they use.