← All lessons
Lesson · Investing · markets

Trade like the desk, not the crowd.

How professional traders think about risk, position sizing, and edge — the parts an individual investor can actually use, minus the mystique.

OVER 50%
Peak-to-trough drops in some large software names as AI repriced the sector

Key points

Why a 10% Drop Snapped Back

Everyone turned bearish
Funds cut exposure
Bad news got absorbed
Sellers ran out of shares
Chase back to benchmark
Highs in 8 to 10 days

RISK BUDGET

The 1% Rule on $100,000

Account size$100,000
Risk per trade at 1%$1,000
Exit set below entry10%
Max position size$10,000

How it works

Write the Rules Before the Drop

1
Set your max drawdownThe dollar loss that forces action
2
Pre-pick your buy listNames and prices you want 20% lower
3
Stage entries in thirdsBuy in tranches, never one click

TOOLKIT

Fund Tool vs Retail Version

Multi-market tradingIndex plus commodity funds
Short bookCash and hedges
Option overlaysCovered calls on holdings
LeveragePosition sizing rules

Key points

What Copying Funds Costs You

Commissions and spreads
Short-term gains taxed high
Screen time you don't have
Leverage cuts both ways
No edge without rules

Free download

The Hedge Fund Strategies field guide — one page

The strategy, the checklist, the key numbers, and links to the actual tax code. Print it, take it to your CPA. Free, no strings.

Scan to open this lesson
Field guide · PDF

Hedge Fund Strategies

Cliff notes + checklist + the law

Get it free

Follow along

Get every new lesson.

One short money strategy at a time — the video and the one-page guide, straight to your inbox. No spam, unsubscribe anytime.