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Articles
Averaging Down Turns Price Declines Into Size Risk
Averaging down does not only reduce the average cost basis; it increases exposure after the market has already delivered adverse information. Before the second order, the useful questions are about existing loss, execution conditions, and position concentration, not just whether the new price looks cheaper.
Before You Hold Through Earnings, Size the Gap Risk
Holding a stock through earnings is not a passive continuation of an existing trade; it is a decision to accept overnight gap risk when exits may not be available at the last quoted price. Position size belongs to the plausible downside gap and portfolio concentration, not to confidence that the company will report well.
After an Earnings Surge, Re-Size the Position You Hold
An earnings gap can turn a sensible holding into a concentrated position before the investment thesis has changed. The first review is position weight, liquidity, spread, tax exposure, and exit cost, not whether the last earnings release felt convincing.
When Bonds Are the Trade, Size Duration Before Dollars
A bond order can look conservative in dollar terms while carrying more interest-rate exposure than expected. The pre-trade check is to translate the proposed position into duration risk, spread cost, liquidity and portfolio weight before the dollar amount is set.
Size Earnings-Gap Trades for Today’s Liquidity
Earnings gaps change the trading problem because the entry price, spread, slippage and intraday volatility can all differ from the conditions visible before the report. This article sets out a pre-trade process for sizing post-earnings trades from current liquidity rather than yesterday’s chart.
When Rate Expectations Move, Recheck Order Size
A rate-driven move is not only a question of whether to buy, sell, or wait. It can also change volatility, liquidity, and execution risk enough that a normal order size no longer behaves like a normal order.
How to Read Depth of Book Before Sizing a Position
Position size is not only a portfolio decision; it is also an execution decision. This article explains how to use depth of book, spread, displayed liquidity, and expected slippage before deciding whether an order is suitably sized for the market in front of it.