Summary

This entire book has led to this and the next chapter. In summary, to put together all we have covered in the preceding chapters, switch to relative series and triage with the market regime. Enter short after a swing high or long after a swing low. Set a stop loss above or below the swing and a target price to reduce risk. Calculate your position size using your cost, stop loss, and risk budget.

Keep a separate risk budget for each long/short side of each strategy. Honor your stop losses and respect your strategy. Keep a clean trading journal. Refine your mandate along the way.

In the next chapter, we will be looking at one of the most underrated tools in your arsenal: your portfolio management system. Being a stock picker and a portfolio manager are two distinct jobs that require different skill sets. The moment you chose to manage a portfolio, you are no longer a stock jockey. You have become a stable master. Your job is not to cross the finish line on horseback...