I used to advise a fintech that made analytics for long/short managers. Generally their clients demonstrated great security selection skill but poor sizing skill and poor market timing skill
Position sizing should be a function of risk/reward. Your ability to estimate risk/reward is a skill. Your ability to know you have the skill to estimate risk/reward accurately is a skill.
Most people are bad at estimating risk/reward and, more importantly most people aren’t introspective enough to know they’re bad at this. That’s why most people blow up being concentrated.
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