In this episode of the Trading Justice Podcast, Matt, Tim, and Mark are joined by Coach Emily Muiruri to discuss Portfolio Design. Topics discussed: How you allocate capital, which strategies you use, how you manage risk, position sizing, and financial goals.
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.
Over the years, I’ve received thousands of questions about trading concepts from my students. Recently, I received a question on how to determine if a portfolio is too bullish or bearish. There’s a video at the bottom of this post that explains everything there. If you want to skip straight to the video, scroll down….