Discussion of risk allocation
I recently read the blog post Risk Allocation Framework by Eric Xu, which also made me think about my own risk resistance , especially in the face of uncertain events that occur. In 2021, my main focus is on quantitative finance. Although the quantitative field sounds advanced to the layman, most commercial companies generally do not disclose algorithms that can be profitable directly in the market, and it still takes some coincidence and opportunity to profit from publicly available algorithms. In my opinion, no matter how many times your earnings, one thing you always have to consider is how to bear the risk, if you invest in a stock, the beginning is a lot of earnings, and finally because of market volatility factors lead to all your earnings to zero, and the cost also fell to 90%, this time how do you talk about profit. In the field of investment you can survive for how long, it shows how high your ability to resist risk, do not let yourself out easily, once out, you will never have the opportunity to enter the profit. ...