Mac Murray

Posts Tagged ‘RISK Management’

Nick Leeson, Rogue Trader Who Destroyed Barings Bank

In INTELLIGENT Investor, RISK Management, ROGUE trader on December 31, 2009 at 1:40 PM

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E. M. Murray. Customized Stock Portfolios. Professional Management. Fixed Downside Risk.

The Primacy of Fixed Downside Risk

In DEEP Investing on December 14, 2009 at 1:50 PM

Defense Readiness meets Algorithmic Trading Systems

CONTINGENCY PLANS FOR CONTROLLING LOSS

The property of Fixed Downside Risk is one of the defining characteristics–if not the defining characteristic–of my investment methodology.

Furthermore, when it comes to Fixed Downside Risk, I’d go so far to say that 99% of all the retail stockbrokers I’ve met–in the Philippines and in the United States–received zero training in how to do this–nor indeed, even know what I’m talking about.

Don’t believe me?  Ask them yourself.

“We focus on risk before we focus on return. The best investors do not target return.  They focus first on risk.”

–Seth Klarman

Chinese Blue Marble Half Slice Read the rest of this entry »

Merits of Rules Governed Trading

In DEEP Investing on September 20, 2009 at 2:40 PM
Do you, your broker, or your investment manager have a pre-flight checklist?

Do you, your broker or your investment manager have a pre-flight checklist?

.Chinese Rose Marble Half Slice

“After 20 years of trading, I find it almost impossible to trade without a plan that does not have fixed rules.”

–Robert Krauscz, New Market Wizard

Chinese Rose Marble Half Slice

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Can you imagine the pilot of a jumbo jet climbing into the cockpit, firing up the engines, and hurtling down the runway into the sky without a second thought?  I mean, no checklist, no clearance from the tower, no nothin’? Read the rest of this entry »

“Just don’t go crazy with the leverage.”

In huMOR on September 4, 2009 at 7:50 AM

THIS LAND IS GOOD. JUST DON'T GO CRAZY WITH THE LEVERAGE

When Failure Is Not an Option: The Stewardship of Your Financial Future

In DEEP Investing on August 26, 2009 at 2:58 PM
"We have  a "zero fail" mission."  Colonel Mark Tillman, head of the Presidential Airlift Group

"We have a 'zero fail' mission." Colonel Mark Tillman, head of the Presidential Airlift Group

In Pursuit of Zero Fail

When it comes to certain tasks, the consequences of failure are so negative and far reaching they are almost too terrible to contemplate.

One such task is safely airlifting the President of the United States on Air Force One.  Other “no fail” occupations would be the operation of nuclear power plants and the deployment of ballistic nuclear submarines.  For those involved in such work and for those whom they serve, failure is not an option. Read the rest of this entry »