What risk management lessons can we learn from Melvin Capital 50% loss in Jan 2021?

Discussion in 'Risk Management' started by helpme_please, Jan 31, 2021.

  1. LOL Tell us what you think/LOL.
    I dont short single stocks anymore. But really, there was a/Very good probaibility it would turn @ 50% loss. Thats why you see so many ads\ ''50% off sale''
    BUT Mr Melvins 53 % loss could have easy gone more.
    Aussie trader D Guppy has a real good risk management commandment;
    ''NEVER confuse a high probability with infallibility''
     
    #21     Feb 3, 2021