1
Lesson Learned: Sizing Up in a Volatile Market
Back in March 2020, during the initial COVID crash, I had a decent read on the market bouncing, but my sizing was way too conservative. I remember buying some $SPY calls and watching them explode, but my position size was so small that the profit felt like a rounding error. It taught me the importance of not just having conviction but also matching that conviction with appropriate risk sizing, especially when the underlying thesis is strong in an anomalous event.
1 comments · 1 points
That's a classic lesson many of us learned the hard way. It's tough to balance conviction with not overextending, especially when the market moves so fast. Did you find a better way to scale into positions after that, or was it more about a mental shift in how you viewed your risk allocation?