Why Traders Spread Their Bets: Portfolio Review

“If you personalize losses, you can't trade.” - Bruce Kovner

Traders and investors spread their investments across different markets to handle ups and downs and find the best chances to profit.

Here’s why they do it:

• Balancing Risk: By investing in multiple areas, a loss in one market can be balanced by a gain in another.

• More Chances to Catch Trends: Different markets move at different times, so spreading out investments helps traders be in the right place when trends happen.

• Smoother Results: Since markets don’t all move together, investing in various areas helps cushion unexpected drops in one market.

• Better Profit Potential: By looking at different markets, traders increase their chances of catching big moves, making the portfolio more steady overall.

Spreading investments across markets helps traders keep their portfolio balanced and catch emerging trends wherever they appear.

A trader who brags about individual trades likely doesn’t grasp the difference between being right and making money. The goal is consistent annual returns, each individual trade is meaningless.

Most newsletters focus on keeping you engaged, pushing trade ideas to keep you engaged without sharing actual returns. I don’t do that here.

I share the good trades as well as the bad ones.

Real teaching means showing you how I handle my own money.

The most valuable lesson? Watching how I stay disciplined and stick to my strategy, even during rough patches.

Now, we are out of the choppy summer period and heading in to the best 6 months of market returns.

Here is how we are doing.

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