Bruce Kovner: Turn Market Views into Defined Exposure
Three hypothetical positions each carry 500 of planned risk. One depends on a stronger currency, another on lower commodity prices and a third on a related interest-rate move. The account…
Three hypothetical positions each carry 500 of planned risk. One depends on a stronger currency, another on lower commodity prices and a third on a related interest-rate move. The account…
A hypothetical trading model earns 0.08 per share before costs. Its execution assumptions allow 0.03 per share for the complete trade, leaving 0.05. If the actual cost rises to 0.09,…
The plan on the screen is short. A growth stock has built a seven-week base with a pivot at 52.40, the index is holding above its 50-day moving average, and…
A hypothetical trade has an entry at 40.00, an exit reference at 38.00 and a quantity of 500 shares. The planned price risk is 1,000 before costs. If the trader…
A growth stock has spent seven weeks building a base with a pivot at 40.00. At 10:05 Eastern on a Monday it trades through that level on heavy volume, and…
A stock breaks out of a base and you buy 100 shares at 50.00. Six weeks later it closes at 65.00. The position shows a 15.00-per-share gain, 1,500 in total,…
A breakout clears resistance, looks convincing for two sessions, then falls back into the range. The losing trade alone tells you very little about whether the setup was worth taking.…
A stock clears its base, a trader enters at 100.00, and three sessions later the price is sitting at 95.40. The breakout volume has faded. Nothing on the chart says…
Two accounts finish the year at the same value, built from the same set of returns. One you could have held without much stress. The other spent months trading below…
Picture a book of six positions spread across different sectors, the kind that looks diversified on paper. On the three worst sessions of a rough stretch, all six close red…