Good Bye risky doggie

I should wrote this article earlier, early July, when I get burn from sudden trend change from bear to bull, with GS better than expected earning announcement. Eroding all the gain, with > 70% of initial capital, I start thinking am I betting too much, too much than I can afford to.

Start then, I decide to think back, and invest on fundamental stock. Really cannot get used with the portfolio only fluctuating <1% every day. When the age grow, we are not able to take risk as we are young. When our portfolio is 10k, we can put 100% in the options, but when our portfolio is 100k, we cannot do the same.

So many veteran investor i met, told me to invest, and not gamble. But, when you earn money from it, you thought you got the method, you think all is in your control, and trade bigger and bigger. This is the most common mistake amateur failed to do, position sizing, especially when you trade in high risk position.

I am old, and cannot afford to lose big money anymore. I will focus of manageable position, and only put small portion on trading high risk counter. Kiss good bye, risky doggie.