Know your risk management

Risk management is the most important aspect of all trading. Most lack a robust risk management methodology, and are therefore usually caught badly when things go against their view. We have seen extreme markets for a year now. Latest survey by BofA reveals some extra interesting facts that we have not seen until now. Allocations to equities just reached another new recent high where fund managers have the most allocations to equities since Volmageddon hit. It is also interesting to note that the aggregate fund manager community thinks they are taking record amount of risk in their investments. Whatever happens next, risk management will be the most important aspect of your trading to "understand".