I think it was, was it Markowitz who said something like, diversification is the closest thing to a free lunch for… He was talking about investing, but I think it applies to trading as well. I’m really looking forward to seeing what you’re going to share with us. Can you share exactly what is diversification and what are some of the, I guess the challenges or issues in trading that we’re trying to address by using diversification? How about we start with some of the basics first, just so that we’re all on the same page. I guess there’s two ways to address diversification, Andrew. I guess, you’ve had some of these commodity traders on your podcast earlier on. They look at diversification by trading very completely different markets, a vast array, 50, 60 different commodity markets, corn and wheat, financials, foreign exchange, all sorts of different things. The theory there is that, these markets are uncorrelated, they react very differently to different situations and trends will appear that will ride them up and down. Predominantly what I’ve been doing for the last 30 odd years, is trading equities. I stopped really trading on the short side back during the GFC, for two reasons.
First of all short selling in Australia was completely banned back then.Īnd second of all, borrowing stock is now a very, very difficult thing, the regulator really shut it down due to some unfortunate circumstances back then. Things were very, very difficult in Australia to borrow stock, to sell short.
0 kommentar(er)
