15best Practices Hedge Fund
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15 Best Practices I have observed over the years as a Peak Performance Coach to PMs at Hedge Funds Doug Hirschhorn, PhD [email protected] www.DrDoug.com 1) Ask yourself, “Is today a day to make money, do very little or limit losses?” 2) Always think, “If I had no position on right now, what would I do?” 3) Learn to endure the pain of your gains. 4) The path of the trade is much more important than the idea behind the trade. 5) Listen to observations rather than opinions. 6) 45% - 55% is the average winning % of Long/Short Discretionary traders (successful trading is not about being “right,” it is about making more when you are right and losing less when you are wrong.) 7) You can have 1000 reasons to get in a trade, but you only need 1 reason to get out. 8) Talk and think in terms of % and BPS rather than $. 9) Make decisions based on Expected Values. 10) The market does not know your position or your P & L and the market is not out to “get you.” 11) No Edge, No Trade Small Edge, Small Trade Big Edge, Big Trade 12) Trade your ideas, not someone else’s. 13) Making money is easy, keeping it is hard. 14) The market does not “owe” you anything. 15) H + W = P = EⓇ (Hoping + Wishing + Praying = Exit the Trade!) © Copyright 2016 Edge Consulting LLC ALL RIGHTS RESERVED Downloaded from www.hvst.com by IP address 49.149.99.114 on 2016/02/08
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Transcript of 15best Practices Hedge Fund
15 Best Practices I have observed over the years
as a Peak Performance Coach to PMs at Hedge Funds
Doug Hirschhorn, PhD
www.DrDoug.com
1) Ask yourself, “Is today a day to make money, do very little or limit losses?”
2) Always think, “If I had no position on right now, what would I do?”
3) Learn to endure the pain of your gains.
4) The path of the trade is much more important than the idea behind the trade.
5) Listen to observations rather than opinions.
6) 45% - 55% is the average winning % of Long/Short Discretionary traders
(successful trading is not about being “right,” it is about making more when you
are right and losing less when you are wrong.)
7) You can have 1000 reasons to get in a trade, but you only need 1 reason to get
out.
8) Talk and think in terms of % and BPS rather than $.
9) Make decisions based on Expected Values.
10) The market does not know your position or your P & L and the market is not out
to “get you.”
11)
No Edge, No Trade
Small Edge, Small Trade
Big Edge, Big Trade
12) Trade your ideas, not someone else’s.
13) Making money is easy, keeping it is hard.
14) The market does not “owe” you anything.
15) H + W = P = EⓇ (Hoping + Wishing + Praying = Exit the Trade!)
© Copyright 2016 Edge Consulting LLC ALL RIGHTS RESERVED
Downloaded from www.hvst.com by IP address 49.149.99.114 on 2016/02/08
