Risk Management
Hi SMP's!

What strategy do you use for your Risk Management in a Bear/Bull/Sideways Market with your allocated capital?

Let us break it down in terms of Invested Capital as follows; (i.e.,)

Capital Portfolio Sizing Allocation Max. Stock Position Cash
P100K 80%??? 2? 20%??
P500K 80%?? 4? 20%
P1M - - -
>P5M - - -

Do you go ALL IN for a particular stock?

I have always used 100% position sizing, zero cash reserved and nowadays allocate only to 4 stocks equally.. I have tried up to 12 maximum stock positions to minimize drawdowns but suffered losses due to wrong timing in the market.Big Grin.. I have tried going ALL in also for 1 stock.. again, wrong timing in the market again..Big Grin I used to be comfortable with 5-8% drawdown before but with dwindling capital, it is not now limited to 2%..Big Grin.. Today, I guess i have settled down my risk appetite and now comfortable with it even with some high flying stocks pass my radar screen.

I hope some people can share their view, specially to those traders who have matured with their risk management style.

thanks in advance.Shy
Up natin to.. magandang topic to.. gurus / veterans kindly share..
when GOD steps in, MIRACLE happens.....

It's more fun in FOREX!!!

O nga up natin ito. Nasaan ba tayo ngayon? Sideways?
Im into stocks for 4 years...but I still consider myself as rookie in stock market...

Here's mine...

will initally allocate 20% of the fund when a stock enters into oversold condition...then will continue to accumulate (up to 50%) until it leaves the oversold condition...but will cut when loss is 5% (normally this happes when major breakdown occurs for the stock).

same process if there's another stock that starts to enter into oversold condition until 100% into stocks.


Forum Jump:

Users browsing this thread: 1 Guest(s)