• Bull.

    HEDGEYE'S DEAL OF THE MONTH

    TRY OUR DAILY MACRO PLAYBOOK

    FREE FOR 30 DAYS!

In this important clip from The Macro Show, Hedgeye CEO Keith McCullough reminds viewers that one of the biggest mistakes investors make is putting too much of their capital into one position. By adding and trimming positions incrementally, you can avoid large drawdowns when a position goes against you.

"This is embedded risk management," McCullough explains. "It may very well end up being a mistake—but it's a very well-controlled mistake."

McCullough: How I Use Position Sizing (To Avoid Blow-Ups) - TMS Banner