Advice Quote by Bruce Kovner
“Risk management is the most important thing to be well understood. Undertrade, undertrade, undertrade is my second piece of advice. Whatever you think your position ought to be, cut it at least in half.”
About This Quote
Source Interview: Market Strategies with Bruce Kovner, 2015
Effective risk control is essential; consistently reducing position size protects capital and limits loss.
In simple terms: Cut positions in half to manage risk.
Key Takeaway
Always prioritize risk limits over potential gain.
Themes
risk management
capital preservation
trading discipline
Mood
cautious
analytical
Type
practical
advisory
When to use this quote
- stock trading
- forex
- commodity markets
- portfolio construction
Key Concepts
risk‑reward ratio
position sizing
loss aversion
Questions to Reflect On
- Are you comfortable with smaller positions?
- How do you balance risk reduction with profit goals?
A Different Perspective
Over‑reducing can limit upside potential.
![“Michael [Marcus] taught me one thing that was incredibly important... He taught me that you could make a million dollars. He showed me that if you applied yourself, great things could happen. It is very easy to miss the point that you really can do it.” quote by Bruce Kovner](https://sms4smile.com/quotes/img-quotes/9e8/bruce-kovner-30819_can-do_michael-marcus-taught-me-one-thing-that_1708047.jpg)
