How I approach risk.
I invest only after I understand what I'm holding. For equities, I use a value-investing approach. For crypto, I follow a written set of rules. In both cases, I decide the risk before entering a position.
Price, financials and competitive advantage.
I look for businesses trading below what I believe they are worth. Before investing, I review the financial statements and the company's competitive advantage. I then adjust the position as the price changes.
Look for a valuation gap
Screen for businesses where the market price appears lower than the underlying value.
Review the financials
Study the balance sheet, cash flows, margins and debt before taking a position.
Check the advantage
Look for a durable advantage such as pricing power, network effects, brand strength or lower costs.
Adjust the position
Reduce or add to a position as the price changes while keeping the original risk limits in view.
Written rules and a fixed risk limit.
Alongside equities, I trade crypto CFDs using several strategies. The mix changes with the market, but I follow the same risk rules for every trade.
- Entries and exits follow written rules rather than impulse.
- I size every position in advance and cap the risk on each trade.
- I use leverage cautiously and account for the added risk.
Personal track record, shared for transparency and education only. CAGR figures are my own and my family's portfolios. Not SEBI registered. Nothing here is advice, a tip, a call or a signal. CFDs and leverage carry significant risk.