My first foray into the market ended in (minor) tears where I "invest" in a 10x leveraged pair trade (who could have known being 10x leverage to a volatile asset was a bad idea).
Anyway I went away to try to work out what I did wrong (I was actually right on the ultimate direction of the pair, but was so highly leveraged that it was a disaster waiting to happen). I learned about the Kelly Criterion [1, 2] which every investor/gambler should know about. As a rough rule of thumb never invest more than 5% of your capital in any one company or you will lose in the long run even when the odds are in your favour.
1. http://www.elem.com/~btilly/kelly-criterion/
2. https://en.wikipedia.org/wiki/Kelly_criterion
- Forums
- ASX - By Stock
- BIG
- BIG Filing for Chapter 11 and Ceasing all Operations
BIG Filing for Chapter 11 and Ceasing all Operations, page-207
-
- There are more pages in this discussion • 192 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add BIG (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CC9
CHARIOT CORPORATION LTD
MD - Shanthar Pathmanathan, Geologist - David Trabert
MD - Shanthar Pathmanathan
Geologist - David Trabert
SPONSORED BY The Market Online