Comments on: Why You Should Build A Team.. http://www.tradingmalaysia.com/2007/04/19/why-you-should-build-a-team-2/ Asset Management and Trading Education for the KLSE Wed, 07 Jan 2009 19:58:30 +0000 http://wordpress.org/?v=2.6 By: dirtydog http://www.tradingmalaysia.com/2007/04/19/why-you-should-build-a-team-2/#comment-87 dirtydog Fri, 20 Apr 2007 03:59:50 +0000 http://tradingmalaysia.com/?p=419#comment-87 I have written a bit in my latest post why I have decided to appoint a manager for my fundamental (or "mechanical") portfolio. These are easy and objective to set up, evaluate, and monitor. Speculative (or "discretionary") portfolios, however, are not. I hope that you can also see why if you were a trader you would always want to develop and own a successful speculative system and not have it in the hands of another. Whilst I agree that outsourcing my discretionary portfolio will probably be more efficient from a time saving perspective, I have to consider that in making the allocations efficient .To apply an analogy, if you ran a successful car company you would not outsource the car design processes and keep the mailroom department. It would be the other way round. I have written a bit in my latest post why I have decided to appoint a manager for my fundamental (or “mechanical”) portfolio. These are easy and objective to set up, evaluate, and monitor. Speculative (or “discretionary”) portfolios, however, are not.

I hope that you can also see why if you were a trader you would always want to develop and own a successful speculative system and not have it in the hands of another. Whilst I agree that outsourcing my discretionary portfolio will probably be more efficient from a time saving perspective, I have to consider that in making the allocations efficient .To apply an analogy, if you ran a successful car company you would not outsource the car design processes and keep the mailroom department. It would be the other way round.

]]> By: swifz http://www.tradingmalaysia.com/2007/04/19/why-you-should-build-a-team-2/#comment-86 swifz Thu, 19 Apr 2007 20:48:57 +0000 http://tradingmalaysia.com/?p=419#comment-86 Why hire a manager to invest in fundamental and play speculative yourself? What I know is for fundamental, the time frame is long, thus it will require less attention. For speculative, you need to constantly monitor your position. So, I don't understand your action when you claim you don't have enough time. Better hire a manager to play speculative and you yourself fundamental, unless you are looking for the thrill of speculating. Why hire a manager to invest in fundamental and play speculative yourself? What I know is for fundamental, the time frame is long, thus it will require less attention. For speculative, you need to constantly monitor your position. So, I don’t understand your action when you claim you don’t have enough time.

Better hire a manager to play speculative and you yourself fundamental, unless you are looking for the thrill of speculating.

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