Eggs, Baskets and Risk
This piece originally appeared on Real Money Pro.
The CNBC Million Dollar Portfolio challenge is now a week under way, so some traders can get their focus back on using actual dollars and away from Monopoly money. I find the whole challenge a bit laughable, because a prudent diversified approach to investing wouldn't work well, nor would tight stops or scaling trades lead you to victory. No, this is a contest where you have to put all your eggs in one basket. Even more, it is a long equity basket without options and above a stated market cap. In the end, it is 50% luck, 50% timing, and 10% skill. There is probably another 25% in there for luck as well. (The numbers make about as much sense as the challenge.)...521 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.