John Maynard Keynes

John Maynard Keynes is best known for Keynes's theory, the belief that the government should be the generating force that increases demand to boost growth. Keynesians believe consumer demand is the primary driving force in an economy. As a result, the theory supports expansionary fiscal policies.
Like his theories or not, you have to be able to respect a speculator who has real experience with trading success and failure and success again. 

Keynes is also known for being quoted as saying “The market can stay irrational longer than you can stay solvent.” In these uncertain times, risking capital is more necessary if you want to your trading account or portfolio to benefit from the market rebound. I am definitely not advocating for timing the market, I am only pointing out the fact that global markets have recovered from pandemics, a recession, depressions, bubbles, and Great Wars. 

The inner prepper in me thinks about preparing my family in a post-apocalyptic world where I have to train my wife and kids to live off the land. Then I come back to my senses and remember that I am not a fan of camping, my hunting consists of going to the nearest supermarket in my gas-guzzling SUV. As for putting capital at risk, I am limiting how much is at risk based on how much of my own capital I am willing to risk on a monthly basis, not including previous gains. For example, $150 of my own capital is all I am going to possibly lose in any given month.

Part of trading that does not get enough attention is the ability to "actively" sit still and let a position work for itself.  My trading strategy has two major components, a portfolio that is passively investing by owning and holding stocks and actively hedging against the downside with options. This strategy allows for continuous participation in the market in these uncertain times.




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Active Portfolio Management



Evaluating Investment Performance


To assess how well your investments are doing, you'll need to consider several different ways of measuring performance. The measures you choose will depend on the information you're looking for and the types of investments you own. Learn more.



Asset Allocation


Asset allocation is a useful tool to manage systematic risk because different categories of investments respond to changing economic and political conditions in different ways. Learn more.



Diversifying Your Portfolio


When you diversify, you aim to manage your risk by spreading out your investments. You can diversify both within and among different asset classes. Learn more.



Rebalancing Your Portfolio


As market performance alters the values of your asset classes, you may find that your asset allocation no longer provides the balance of growth and return that you want. In that case, you may want to consider rebalancing your portfolio. Learn more.




Source: FINRA.org