Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Greywolf who wrote (89335)	3/27/2001 9:34:15 PM
From: isopatch	Read Replies (1) \| Respond to of 95453

Was discussing Bear Market tactics with an active trader friend on the phone over the weekend and we were reviewing some of the adjustments every good trader needs to make when the market morphs from Bull to Bear. Just ran across this excerp in Arthur Hill's market commentary today. It encapsulates some of the lessons I've learned over many years (the hard way in some instances) quite clearly and with more brevity than I've seen elsewhere. Kind of of a traders primer on how to play with Bears in the woods(G) "Position sizing is an important tool to successful trading and investing. Not every trade deserves the same amount of funds or commitment. To reflect higher risk in a bear market, bullish trades deserve smaller amounts and tighter stop-losses. In fact, the total amount of funds in equities should be reduced in a bear market. Position sizing also applies to certain setups. Trades that are considered bottom picking should be allocated less money than trades based on solid breakouts. If you want to play for a bottom, do so with small amounts and tight stops. Now is not the time to bet the farm." Amen! Isopatch