Gurus
I quote Jonathan Hoenig in many of my posts in this blog and will continue to do so though I am a contrarian in the heart. I love Hoenig’s writings and thinking. Jonathan Hoenig is the portfolio manager at Capitalistpig Asset Management, a Chicago-based hedge fund. He wrote a weekly column known as Tradecraft (link below) in Smartmoney. I read and re-read his articles. I gone through his writing in the archive. He is a versatile trader with a long horizon in maximizing gains by portfolio management and style of a trader in cutting loss (my understanding only and I may not be right in this – remember I am still a pig and is likely to remain one – maybe slightly better – able to walk on 2 legs).
Instead of being a gambler, investors should think of themselves as gardeners.
Just as an acorn turns into on oak tree, positions should grow to be large — not start out that way.
The Essential Truths, by Jonathan Hoenig May 22, 2006
http://www.smartmoney.com/investing/stocks/The-Essential-Truths-19512/#ixzz0hQ7zO16J
His writing incorporated many guidelines on defensive and safe practice in trading which he wrote so simplistically that you can remember it by heart. I nitpick his ideas, select those that I can use and practice it (again I may be wrong to do but if I practice what he preached on defensive and safe trading, I will definitely survived and that is a big IF). Found his approach practical and sensible very different from the other school of “value” or “long term” Gurus who require us to passive and put a lot of faith in the long term. One of my favorite extract from his writing:
Our job as traders isn't to know the future, but to survive it.
The best way to avoid getting hurt is to avoid putting yourself in a position to be hurt.
I keep my positions small and my risk manageable.
My high-school hockey coach was right: A good defense is your best offense.
Size Matters, Jonathan Hoenig, March 1, 2001
http://www.smartmoney.com/investing/stocks/size-matters-10098/
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