It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong — George Soros
Your approach to position sizing is interesting. How do you ensure downside protection while still capturing potential upside, especially when you're confident in a stock? Also, how do you avoid letting intuition lead to overconfidence or risky decisions in your portfolio?
Not OP but: first question can be answered by the use of call/put options if you know a payout by a certain date like special situations (lawsuits, DOJ contest to mergers, mergers arbitrage etc.). 2nd question is you have a hard stop at say 30% of the portfolio to any position to counteract hubris.
Your approach to position sizing is interesting. How do you ensure downside protection while still capturing potential upside, especially when you're confident in a stock? Also, how do you avoid letting intuition lead to overconfidence or risky decisions in your portfolio?
Not OP but: first question can be answered by the use of call/put options if you know a payout by a certain date like special situations (lawsuits, DOJ contest to mergers, mergers arbitrage etc.). 2nd question is you have a hard stop at say 30% of the portfolio to any position to counteract hubris.