I received a number of positive comments from the interview of Index Trader Sam Beckers, CTA, in the previous issue of the Connors Research Traders Journal.
One trader was kind enough to share back an interview he thought would be of interest to me because it covered the very important topic of position sizing. A topic that is hotly debated and is so key to one’s overall trading success.
A pleasant surprise came when I saw that the interview was with Victor Haghani, one of the founders of Long Term Capital Management (LTCM) . Long Term Capital was made up of some of the very best and smartest traders in the world which included Nobel Prize winners. Their first few years saw spectacular returns only to be followed by one of the largest collapses in money management history. Their story is chronicled in Roger Lowenstein’s book “When Genius Failed”.
After this occurred, Victor retired for a decade before rejoining the asset management world including starting his new fund in 2011. He’s also done a number of talks of what happened at LTCM and more importantly, the lessons learned.
Victor’s a brilliant man and because of his background and experience, he’s someone who has firsthand knowledge that we can all learn from.
I hope you learn from and enjoy this interview on how to optimize your position sizing in order to increase your returns.
Connors Research, LLC.
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