Laurent Lequeu – Sizing Is Crucial When Trading
My Worst Investment Ever Podcast
The Importance of Risk Management and Being Humble in Trading
The speaker shares their worst investment experience and highlights the significance of risk management and humility in the trading business. They discuss the lesson of exiting a trade when it goes against expectations and emphasize the need for proper position sizing.
BIO: Laurent Lequeu is a multi-asset investor dedicated to assisting High Net Worth Individuals and Retail Investors in achieving financial success through actionable investment insights derived from comprehensive global macro trends and meticulous bottom-up analysis.
STORY: Laurent thought he could outsmart all the hedge funds and the most brilliant investors by shorting NVIDIA before the first quarter results. His thesis was that the stock was an extended and overcrowded trade. However, people were still interested in the stock, so the price didn’t fall as Laurent expected. Consequently, he made a loss.
LEARNING: Sizing is crucial, especially in a short position. Apply risk management when investing. Accept that you’re going to be wrong.
“You have to admit that you’re wrong and that the market is always right.”
Laurent Lequeu
Guest profile
Laurent Lequeu is a multi-asset investor dedicated to assisting High Net Worth Individuals and Retail Investors in achieving financial success through actionable investment insights derived from comprehensive global macro trends and meticulous bottom-up analysis.
Laurent is a global citizen with a mission to enhance financial literacy and empower individuals worldwide through education.
Worst investment ever
Not too long ago, Laurent thought he could outsmart all the hedge funds and the most brilliant investors by shorting NVIDIA before the first quarter results. His thesis was that the stock was an extended and overcrowded trade. However, people were still interested in the stock, so the price didn’t fall as Laurent expected. Consequently, he made a loss.
Lessons learned
- Sizing is crucial, especially in a short position.
- Apply risk management when investing.
Andrew’s takeaways
- You have to accept that you will be wrong, and when you get it wrong, be willing to exit, particularly in a short position.
- If you don’t admit you’re wrong, the market will admit it for you.
Actionable advice
Before you enter the trades, know how much you can lose. Knowing what you can lose is more important than knowing what you can win. Also, admit that you’re wrong because there’s nothing wrong with being wrong. This is an industry where you must be right more often than wrong, but you will be wrong eventually.
Laurent’s recommendations
Laurent recommends focusing on personal learning and personal development regarding financial literacy.
No.1 goal for the next 12 months
Laurent’s number one goal for the next 12 months is to be fully dedicated to his new company, which is focusing on improving financial literacy for everyone. He also wants to democratize and demystify macro investing.
Parting words
“Unlock your individual financial success and learn to be financially independent.”
Laurent Lequeu
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Connect with Laurent Lequeu
Andrew’s books
- How to Start Building Your Wealth Investing in the Stock Market
- My Worst Investment Ever
- 9 Valuation Mistakes and How to Avoid Them
- Transform Your Business with Dr.Deming’s 14 Points
Andrew’s online programs
- Valuation Master Class
- The Become a Better Investor Community
- How to Start Building Your Wealth Investing in the Stock Market
- Finance Made Ridiculously Simple
- FVMR Investing: Quantamental Investing Across the World
- Become a Great Presenter and Increase Your Influence
- Transform Your Business with Dr. Deming’s 14 Points
- Achieve Your Goals
Connect with Andrew Stotz:
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