Asked this in r/investing a couple weeks ago and got a lot of good answers. Curious how the thought process here will be different with the focus on individual stocks and not just index funds.
Is there a good way to measure how risky your current portfolio is? I’ve looked at indicators like beta, sharpe ratio, and sortino ratio in the past, but I’m not sure how to actually use it to manage my portfolio.
Are there other indicators for things like interest rate risk? Or is managing risk really just about understanding the individual companies and sectors you’re invested in?
For example, I bought $TWLO at ~$80, and at one point it was one of my top performers and made up >10% of my portfolio. Now I've lost >70% on that position, and I'm kicking myself for not taking any profits off the table. Obviously hindsight is 20/20, but I'm interested in how r/stocks would have managed this position.
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