Let’s say a biotech CEO learns that, in two days, her company is going to announce clinical results that will surely boost its stock price. She can’t legally buy up a bunch of the company’s shares right then — that would be the bad kind of insider trading — but she can cancel a scheduled 10b5-1 sale to avoid dumping stock just before its price soars.
Good post on position sizing techniques of qualitative managers. Good quantitative managers spend a lot of time on this, but their strategy with robust historical data lends itself to it. By now I’m sure most people have heard of kelly betting? I think most qualitative PM’s utilize some form of fixed position sizing based on trial & error….I think there is room for improvement.
Another excellent post/pdf on position sizing h/t @rjs2006
This is another trading tale I’ve heard over the years, Japanese day traders that make millions that started off with a huge fat finger fade trade in J-Com. Trades a momentum strategy, treats trading like a video game rather than an intellectual endeavor.
This seems to be a new guy but there’s all kinds of youtube videos and interviews if you look hard enough on the other guy mentioned BNF. Here’s a few:
“All he does is eat Ramen and pick winners.”