Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
There are plenty of ways to run either your own or OPM (other people’s money) in markets. The art of running other people’s money is having money to manage. So you better have a #process that you can both sell and execute on profitably.
I get plenty wrong… but when I am right, here’s a basic lesson on how I execute with discipline on A) and B):
A) I buy (longs) and cover (shorts) when something is at the LOW end of my @Hedgeye Risk Range … and
Yes, buy-the-crap is also a very technical term you’ll learn as you play The Game.
It’s actually what makes the difference between someone making money and someone making a lot of money when they are right – how BIG did you buy at the LRR (low-end of the Risk Range)?
I’ll struggle with that until I’m on the wrong side of the grass. Why? Mainly because I stay with my process. My process defines MAX size by position. That said, going big (to my max) has been plenty enough to feed my 4 kids in Westport.