Options Jive - January 15, 2021 - Types of Risks in a Portfolio
When managing a portfolio, it’s important to consider directional exposure, underlying correlations, leverage/account allocation, and tail/outlier risk. Since traders can’t control how the market moves, they can focus on risk mitigation with managing early, trading small and often, diversifying between asset classes, and never allocating more than 50% of the available buying power in a portfolio.