Adrian Reid (speaker) introduces the topic of protecting trading accounts from catastrophic market events and black swans. He frames himself as conservative and stresses the importance of managing catastrophic market risk so that trading accounts can grow over time even if rare, large dislocations occur. He advises trading as if black-swan events are possible and emphasizes personal and audience protection.
Chapters
This is one of these things. I'm a fairly conservative person. I don't want you or anyone that comes into contact with me blowing up their trading account because money takes energy and effort and time to earn. So I don't want you saving money and then putting it into the markets and something unexpected taking that away from you. I want you to put it into the market and be able to grow it no matter what happens. Very, very important to me. So same as I don't want my own trading account to blow up, you know, I want to protect and allow it to grow over time. So if once in a decade there's a market dislocation and it drops some large amount in a very short space of time, I want to know that I'm protected. And same for you. So that's really important to manage your market catastrophic risk. Even if there's never a market dislocation in your lifetime, you should still, you know, if you don't expect one, you should still trade as though there's.
There's a possibility that could happen. You know, the black swans that are event. The unexpected adverse event could be a real problem.
