Affordable mistakes

We all make mistakes in our day to day life. I make them all the time. I bet you do too. For the most part, we don’t pay any special attention to them. But sometimes, when they get a bit bigger, we become very aware of them. We repeat some over time, and for most we’ve learnt over the years what we can and cannot do to minimize the effects.

I bet you’ve heard countless times what you should and shouldn’t do to avoid mistakes and how important they can be in not resulting in ruin. For example, in trading, people advise you shouldn’t risk more than x% of your capital per trade. Quite often they over generalize. They give this advice to both young folks, just starting their careers, and older guys and girls, already counting down the hours to retirement.

Why is this? Why do we think a piece of advice is good for some circumstances? Are they really equally effective in all circumstances? Read More

Brazil’s plunge and what can we learn from it?

This week I would like to write about Brazil and it’s stock market. Most of you are probably aware, that the market opened with a nasty gap down of around -17% on Thursday the 18th of May. I was long EWZ, Brazilian ETF and of course I was down on this position that day. I decided to close my position with no hesitation. Let me write about this position and what can one learn from it.  Read More