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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (78210)	1/26/2007 4:23:38 PM
From: forceOfHabit	Read Replies (1) \| Respond to of 110194

ahha, Maybe you'd like to answer the question of what is the alternative to "cash flow" oriented. Get a book on fundamental analysis. Read it. Many of the same principles that apply to business accounting / financial management apply to your personal circumstances. "Cash flow" is but one important metric of the health and viability of any enterprise, including your own finances. The only possible alternative is idle funds, money that sits around in banks doing nothing. This condition is seen at the large as indicative of depression. You don't actually invest any thought into the opinions you spout, do you? Then maybe you'd like to reveal your cash asset ratio. An entertaining non sequitur. As a matter of fact, I would be perfectly happy to tell you that ratio if I thought it was relevant, but it would of course be meaningless without some idea of my risk appetite, leverage, risk management etc. In fact, since I run more or less market neutral, you'd have to tell me what you meant by the asset part of "cash asset ratio". In fact, I think that would be a great topic for a board here on SI: risk management. We could talk about the use of stops (personally, I think actual stops are an invitation to be gamed by the market makers, mental stops are essential), leverage (imho very useful), options (from the point of view of managing risk, not for expressing a view), diversification (over-rated imho), position limits, scaling, maximum drawdown, whatever. I don't have huge amounts of time to spend here, but I'd welcome the chance to skim other people's thoughts on the topic. foh