Bernard Drury: “An Intrinsic Part of Trading”

Bernard Drury of Drury Capital writes in his May 10 newsletter:

“While trading losses are never welcome, we know that encountering price corrections is an intrinsic part of trading these markets. As ever, [our] Program employs a disciplined approach to trade selection, position sizing, portfolio balancing, and equity protection when adverse market conditions are encountered. During a period when markets are behaving in a manner contrary to positions, [our] Program gradually reduces risk in a systematic manner. In some cases, positions in the opposite direction of the original trend may be established, even while some trades in the same sector are still positioned in the original direction. It is a dynamic process that responds continuously to changes in market conditions.”

Wise insights from a long time trend follower who I was fortunate to spend time with.

2 thoughts on “Bernard Drury: “An Intrinsic Part of Trading”

  1. Some times I also straddle a position by selling half of the longs and purchasing a like amount of shorts. I do this when my system is about to issue a trend change Signal. It assures that I won’t make any money, but more importantly, I will not give back any gains while the market is in transition.

  2. Likewise…often when things are going sideways but obviously getting ready to break out I take both sides and immediately cancel the loser after the trade.

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