Category Archives: Financial market

Fixed Initial Investments

Posted on December 10, 2009 by admin

How much should be invested? The optimal amount is difficult to pinpoint because you would have to know what risks lie ahead, and of course, that’s not possible. However, based on a very small likelihood of losing 50% of the … Continue reading →

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Adding Equal Positions

Posted on December 7, 2009 by admin

As larger commitments are added, an inverted pyramid is created in which the risk of an immediate loss due to a small reversal becomes greater. Adding equal numbers of contracts reduces the proportion of the original commitment in the event … Continue reading →

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