Title: 19 Notable Quotes from the Book “Hedge Fund Market Wizards” – Ivanhoff Capital
Headings: 19 Notable Quotes from the Book “Hedge Fund Market Wizards”
19 Notable Quotes from the Book “Hedge Fund Market Wizards”
Content: All markets look liquid during the bubble (massive uptrend), but it’s the liquidity after the bubble ends that matters. 3. Markets tend to overdiscount the uncertainty related to identified risks. Conversely, markets tend to underdiscount risks that have not yet been expressly identified. Whenever the market is pointing at something and saying this is a risk to be concerned about, in my experience, most of the time, the risk ends up being not as bad as the market anticipated. 4. The low-quality names tend to outperform early in the cycle, and the high-quality names tend to outperform toward the end of the cycle. 5. Traders focus almost entirely on where to enter a trade. In reality, the entry size is often more important than the entry price because if the size is too large, a trader will be more likely to exit a good trade on a meaningless adverse price move.