Bloomberg Surveillance · Friday, August 14, 2026
Kathryn Kaminski emphasizes that position sizing is a crucial, often overlooked, aspect of trading strategy. She explains that rather than trying to time market tops and bottoms, the focus should be on making small, incremental decisions and adjusting position sizes based on prevailing volatility and market trends. This systematic approach helps manage risk and capitalize on opportunities.
“So I would agree in that position. Sizing and the way we think about it is sort of the way it's the secret sauce, right.”
“So, for example, for equities, when you're asking when is a trend over? If you need to make a binary decision, that's a really hard thing to do, right, So what we're trying to do is make small decisions over time and size positions as things move.”
“So as it's going up. If you're a momentum trader, you're going to continue to size into that position. But as you start to see resistance like we saw in the Nasdaq and some of the tech companies this summer, you pull back a little bit some of your gains so that if things go the other direction, you're ready.”