A big responsibility when trading any portfolio is acting as the risk manager.
While that mostly involves sizing trades correctly, and ensuring that exposures don’t get too concentrated, there’s also a broader aspect to risk management – asking the broader “What if?” questions.
For example, we might ask ourselves, what if the market dropped 5% this month? What impact would that have on my P/L? How likely do I view that scenario, and what can I do to protect myself should that come to pass?
Traders can also play the “What if?” game in a more targeted fashion. For example, what if interest rates spike next month? Or, what if crude oil drops below $60 before the end of the year?
Whether you ask such questions routinely, or are seeking to learn more about this type of “scenario game,” a new episode of The Ryan & Beef Show is definitely worth a few moments of your time.
The show is dedicated to asking some of the most important “What if?” questions facing the market today, as well as a wide-ranging discussion on potential answers to those questions.
We think a review of this show will not only provide you with better perspective on the current trading environment, but may help you improve your overall skill as a risk manager.
To access this installment of The Ryan & Beef Show, simply click this link.
If you have any questions for the guys on the show, don’t hesitate to leave a message in the space below, or reach out via email at [email protected].
We look forward to hearing from you!
