Welcome to Extremistan, Part II: In this edition, we will present 15 rules on how to survive and be successful in the stock market.
How successful traders and investors are born? The first step is mastering Portfolio Design; the second is mastering Position Sizing. Above all, Position Sizing is an exercise of humility. We don’t move the markets, we follow them. They are indifferent to us and can be very hostile. They are not simple, but utterly complex and we don’t know the future. Only Position Sizing will be there for us when all else fails.