About sizing correctly 🔰
About sizing correctly. Size according to your conviction and thesis at the time of the trade
GENERAL KNOWLEDGE 📚
@gammichan
10/16/20241 min read
“It's easy to say in hindsight "oh, I should have sized up" after something rips and there's no lesson from that. But if you put yourself back in the shoes of the person the moment you bought and consider if you sized correctly then, there are lessons there.
If you were 5x more convicted than normal but sized normal, than you made a mistake. If you had normal conviction and sized normal, you didn't make a mistake. Notice this is independent of how much it went up. Whether it went 100x or to 0, the correct sizing is based on the conviction at the time of the trade and not the actual result.
Like if you size up on a card draw, dice roll, etc that has 90% odds of winning, you weren't wrong to size up even if you happen to get the 10% loss case”.
Link to the original tweet: https://x.com/gammichan/status/1846371556962062456