Louise Bedford
speaker
1,768 appearances
12 recordings
1 series
first heard May 2026
last heard 10 Aug
Louise Bedford’s voice in public audio — every appearance, attributed to the second.
Trend
recordings per month · last 12 monthsRecordings per month over the last 12 months — 12 in all, peaking in Jun 2026 with 5.
Appearances
This is one of the most important tools in trading.
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It was developed back in the 1950s by a guy called John Kelly.
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He was working at Bell Labs and it answers a simple but vital question of how much money should you risk on a single bet?
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So here's how I apply it.
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With my share portfolio, my rule is to never put more than 25% of my money into one stock.
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Now, why?
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Because if that company tanks, you don't want it to sink your entire portfolio with it.
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I remember one time I had a share called Futurist.
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It was going beautifully up and up and there was no reason to doubt it.
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And then it fell from a great height.
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It dropped 33% in the period of two days and it did a massive gap down so I couldn't get out.
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Now, if I had have had more than 25% of my money in that share, it could have decimated my returns for the year.
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But it didn't because I had appropriate risk management.
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But with ETFs, it's a bit different.
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Because an ETF is already diversified, it's a basket, you don't need to actually feel that same level of restriction.
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You can allocate more to an ETF with confidence because your risk is already spread across dozens, sometimes hundreds of companies.
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You see, the Kelly Principle, it's all about survival.
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It keeps you in the game.
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Remember Ed Takoda's famous words.
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Now, for those of you that don't know Ed, such a famous trader.
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Showing 1341–1360 of 1,768 · page 68 of 89
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