{"id":5914,"date":"2019-07-09T02:46:59","date_gmt":"2019-07-08T14:46:59","guid":{"rendered":"http:\/\/blog.local\/?p=5914"},"modified":"2019-07-09T03:45:30","modified_gmt":"2019-07-08T15:45:30","slug":"you-should-know-when-youre-hot-or-not","status":"publish","type":"post","link":"https:\/\/blog.local\/you-should-know-when-youre-hot-or-not\/","title":{"rendered":"You should know when you&#8217;re hot or not"},"content":{"rendered":"\n<p>Another kicker from the Druckenmiller interview I shared in the <a href=\"https:\/\/blog.local\/friends-family\/\">last post<\/a>. <\/p>\n\n\n\n<p>(for context he is a fund manager)<\/p>\n\n\n\n<p>Skip to 49:00 minutes to pick this chat up.<\/p>\n\n\n\n<p>They get in to, what do you do, after you&#8217;ve had a bad year? The analogy is the same with betting after you&#8217;re down. <\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>As an aside, the investment principle: if you&#8217;re down 20%, you now need to make 25% on your principle to get back to where you were. Or if you&#8217;re down 80% you need to make 500% on your principle to get back to where you were. This is when people tend to get irrational and make bigger and bigger bets. Only to lose.<\/p><\/blockquote>\n\n\n\n<p>Druckenmiller goes on..<\/p>\n\n\n\n<p>When you know you&#8217;re hot, make bigger bets. When you&#8217;re not, make smaller bets to find your groove. <\/p>\n\n\n\n<p>It&#8217;s when you make big bets when you&#8217;re not hot, that really hurt, and create bigger losses.<\/p>\n\n\n\n<p>A good fund manager should know when they&#8217;re hot or they&#8217;re not. And calibrate accordingly. <\/p>\n\n\n\n<p>I like this simple approach.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Another kicker from the Druckenmiller interview I shared in the last post. (for context he is a fund manager) Skip to 49:00 minutes to pick this chat up. They get in to, what do you do, after you&#8217;ve had a bad year? The analogy is the same with betting after you&#8217;re down. As an aside, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5916,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blog.local\/wp-json\/wp\/v2\/posts\/5914"}],"collection":[{"href":"https:\/\/blog.local\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.local\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.local\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.local\/wp-json\/wp\/v2\/comments?post=5914"}],"version-history":[{"count":2,"href":"https:\/\/blog.local\/wp-json\/wp\/v2\/posts\/5914\/revisions"}],"predecessor-version":[{"id":5917,"href":"https:\/\/blog.local\/wp-json\/wp\/v2\/posts\/5914\/revisions\/5917"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.local\/wp-json\/wp\/v2\/media\/5916"}],"wp:attachment":[{"href":"https:\/\/blog.local\/wp-json\/wp\/v2\/media?parent=5914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.local\/wp-json\/wp\/v2\/categories?post=5914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.local\/wp-json\/wp\/v2\/tags?post=5914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}