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Successful Traders Size Their Positions - Why and How?
Starting with purchases of mutual funds as a newspaper delivery boy at 12, through a brief chemical engineering career and a stock portfolio, then through 28 years as a professional money manager with securities, futures and currencies, and currently as an individual investor of our retirement funds, I have seen a lot of things across the world of trading investments. I’ve seen academics and money managers make the investment process mysterious and complicated, intimidating many individuals attempting to manage their own portfolio. It need not be overwhelming to get started.
The concept of right sizing your position is not a new one and there will be some simple math in this book, but nothing more than you learned in 8th grade. Computers might be useful, but certainly not necessary. Great books like Dr. Van K Tharp’s very heavy tome: The Definitive Guide to Position Sizing Strategies – How To Evaluate Your System And Use Position Sizing To Meet Your Objectives, cover it all, with lots of examples, lots of math and really do prove to anyone reading it that sizing your individual positions really does matter in the markets. These books have their place for those really wanting to dig into the topic, but most traders I am in contact with just want “the bottom line.” This book covers my thoughts on practical ways to deal with sizing your positions and I will try my best to keep it as simple and practical as possible.
The concept of right sizing your position is not a new one and there will be some simple math in this book, but nothing more than you learned in 8th grade. Computers might be useful, but certainly not necessary. Great books like Dr. Van K Tharp’s very heavy tome: The Definitive Guide to Position Sizing Strategies – How To Evaluate Your System And Use Position Sizing To Meet Your Objectives, cover it all, with lots of examples, lots of math and really do prove to anyone reading it that sizing your individual positions really does matter in the markets. These books have their place for those really wanting to dig into the topic, but most traders I am in contact with just want “the bottom line.” This book covers my thoughts on practical ways to deal with sizing your positions and I will try my best to keep it as simple and practical as possible.
- GenresFinance
74 pages, Kindle Edition
First published January 1, 2019
85 people are currently reading
243 people want to read
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Displaying 1 - 12 of 12 reviews
May 14, 2019
I think position sizing is the most importad thing is trading. Correct size position will keep your capital alive.
This books has very simple and helpful formulas and approaches to help with it.
Very help full and mandatory.
This books has very simple and helpful formulas and approaches to help with it.
Very help full and mandatory.
March 3, 2022
This ebook is read like a detailed version of a blogpost. As a renowned ex-hedge fund manager, Tom Basso detailed some of his position sizing techniques used through simulation tables. Personally I find it too theoretical. As a discretionary trader, I find his systematised way of sizing tedious. We are obviously very different kind of trader and he is managing millions in his portfolios. Either way it worked for him. But I find this book less useful. I do however admire Mr. Serenity in his other aspects of trading i.e. his mental side of trading, not so much about his specific trading styles. Perhaps the biggest takeaway from the book for me is at the end of the page - "Keep it simple. Trading does not need to be complicated.". Nonetheless I find Mr Basso a great inspirational trend follower to follow. His website and interviews were great. But not so much so about this book. 2/5.
March 5, 2023
Great if you know what he’s talking about
I’ve heard enough from Tom Basso to know that I trust him - he seems like a straight shooter, and a good guy to boot. I only trade stocks and ETFs so much of this book is Greek to me, but it gives you a sense of what risk management entails. There are probably better books on position sizing though. I mostly bought the book because I appreciate Tom and his willingness to help others, with no ulterior motive - he’s not trying to sell you anything.
I’ve heard enough from Tom Basso to know that I trust him - he seems like a straight shooter, and a good guy to boot. I only trade stocks and ETFs so much of this book is Greek to me, but it gives you a sense of what risk management entails. There are probably better books on position sizing though. I mostly bought the book because I appreciate Tom and his willingness to help others, with no ulterior motive - he’s not trying to sell you anything.
November 8, 2021
I liked that he didn't waste ink on this one, that's why I gave it 4 stars.
He mentions Van Tharp quite a few times in the book, since most of this work is repeating VT's book on position sizing. The 1 thing I liked is that he takes the minimum of 3 components, to define the proper size, one of those is % from portfolio. VT's book doesn't do this and you can end up with too big of a position to burn yourself.
He mentions Van Tharp quite a few times in the book, since most of this work is repeating VT's book on position sizing. The 1 thing I liked is that he takes the minimum of 3 components, to define the proper size, one of those is % from portfolio. VT's book doesn't do this and you can end up with too big of a position to burn yourself.
April 27, 2019
Very, very good book on position sizing@
I have made so many mistakes over the years trading too large. Always focused on systems, indicators...male ego, being smart in other fields got in the way of listening and learning. Thank you, thank you, thank you Mr. Basso for this book and simple, short and clear summary.
I have made so many mistakes over the years trading too large. Always focused on systems, indicators...male ego, being smart in other fields got in the way of listening and learning. Thank you, thank you, thank you Mr. Basso for this book and simple, short and clear summary.
September 18, 2020
Enjoy the read!
Things I liked about the book:
- Easy to read
- To the point. No mumbo jumbo.No
- Useful stuff. Few people talks about how to size your trades correctly.
- Good price.
Things I liked about the book:
- Easy to read
- To the point. No mumbo jumbo.No
- Useful stuff. Few people talks about how to size your trades correctly.
- Good price.
August 13, 2022
Quick read
Very good info on position sizing and portfolio management. The cost of book is bit expensive for the content but worth for beginners to get an idea about sizing and risk
Very good info on position sizing and portfolio management. The cost of book is bit expensive for the content but worth for beginners to get an idea about sizing and risk
November 24, 2019
Simplicity + objectivity
Recommend book for its “hit ratio”: wish most non-fiction books were this size, with such brevity and useful insights.
Simplicity is very useful.
Recommend book for its “hit ratio”: wish most non-fiction books were this size, with such brevity and useful insights.
Simplicity is very useful.
November 12, 2021
He's a great guy, his ideas are sound, but basic.
August 17, 2023
Practical
February 28, 2024
Good concise overview of various position sizing techniques
December 22, 2019
Straight to the point and succinct. If you think in global terms, you have to reckon that size determines how much you win or lose. It speaks volumes of the clarity of thought of Tom Basso.
Displaying 1 - 12 of 12 reviews