Val Sklarov —Investment Strategies: Position Size Before Conviction

In the Val Sklarov Decision Cycle, investors don’t fail because they lack conviction — they fail because conviction is allowed to dictate size. Being right does not protect capital. Being oversized destroys it. Position size is the real expression of belief, not words or theses.

Conviction without sizing discipline is disguised emotion.

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1. Size Is the Only Decision That Matters Under Stress

Market volatility tests size, not intelligence.

Val Sklarov principle:

“You don’t feel risk until size makes it physical.”

Oversized positions:

• Force emotional decisions

• Eliminate patience

• Transfer control to markets

Correct ideas fail when size removes optionality.

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2. Conviction Is Cheap, Exposure Is Not

Anyone can sound certain.
Few can survive exposure.

Val Sklarov framing:

“Conviction is narrative. Size is commitment.”

Legitimate investors:

• Separate belief from allocation

• Treat size as a risk instrument

• Adjust exposure faster than opinion

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3. Position Size Is a Function of Reversibility

Not all investments deserve equal weight.

Position Sizing Matrix

Val Sklarov rule:

“The harder it is to exit, the smaller the position.”

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4. Volatility Is a Size Problem

Volatility hurts only when size is wrong.

Val Sklarov insight:

“Volatility reveals sizing mistakes.”

Small, correct positions survive noise.
Large, correct positions become unmanageable.

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5. Scaling In Preserves Decision Cleanliness

All-in decisions eliminate learning.

Legitimate scaling:

• Starts small

• Adds after confirmation

• Reduces regret and rigidity

Scaling is how conviction earns size.

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6. The Val Sklarov Investment Decision Outcome

Clean investment decisions:

• Size positions before forming narratives

• Preserve optionality under drawdowns

• Allow conviction to evolve safely

Val Sklarov conclusion:

“Capital survives not because you were right, but because you were sized to be wrong.”