Best of Dragonfly Capital: Only Practice Risk Management Part Time?

While I am on vacation I have combed through the archives to find the best articles that also stand the test of time. Here is today’s selection from August 2014:

I think it is great all the opinions that you can get for free on the internet and via social media.  But as they relate to technical analysis and even fundamental and macro analysis on the the stock market the repeated mantra of “_______ is occurring so it is time to be cautious” drives me nuts.  Was I totally disregarding risk prior to this warning?

I practice technical analysis.  Known to some as voodoo, others as useless drawing of lines, and still others as complete bull….  Most with those views don’t really understand what technical analysis is all about.  It is about understanding the possibilities from a review of prior price history through supply and demand dynamics for stocks themselves.  In simple terms, it is about risk management.

I analyze the markets with technical analysis tools everyday.  And when I see other technicians pointing out potential risk areas I take notice.  I do my own analysis and determine a course of action.  That is what I do everyday.  That is risk management.  If you need someone to tell you when to practice risk management in the markets then maybe you should give your money to someone else to take care of.


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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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