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Yukki,
It is always easy to state my case and have it misunderstood to mean that that I'm talking about arbitrage. I'm not. I'm looking
for big winners is still the initial aim. However you can only take what the market is prepared to give you. So once in your
potential "big winner" its just hope and anticipation from there on. So the aim is to hold on as long as the market is giving you
money. If it stops at only (say) 10% just be happy and get out, so what if it wasn't a 100%. The really important thing to
recognise is if this is ALL you ever do, i.e take 10% profit on average out of your trades, and you only make 20 trades a year,
you'll find that over a six months period (10 trades) you would have made 2.5 times your working amount. The important thing about
compounding is you must eliminate hope from your repetoire and be extremely risk averse. This does not mean taking a profit the
instant it arrives, it means taking the loss the minute it appears. The reason is you had thought it was going up/down, clearly you
were wrong. If ever you do not understand completely whats up, get out.
I can adamantly suggest that this approach works. You are constantly increasing your trade sizes when winning. If you can't
handle this you must change your thinking. I know a $1000 risk is a lot, and then to advance and lose $2000 after you have
accumulated some winners feels 10 times worse (not twice). So you have to think, not in $ maginitude, but in $percentage.
Anyway I'd encourage you to think more about compounding.
P
----- Original Message -----
From: "Yuki Taga" <yukitaga@xxxx>
To: "server not recognized" <amibroker@xxxxxxxxxxxxxxx>
Sent: Thursday, October 04, 2001 8:33 AM
Subject: Re: [amibroker] Re: Testing Projects Question #2
> Hi server,
>
> Thursday, October 04, 2001, 12:17:17 AM, you wrote:
>
> snr> Afraid I disagree about compound vs fixed equity. Compound is
> snr> the small traders friend.
>
> Maybe so, but few people actually trade that way in real life. I've
> been trading 30 years, successfully, and I don't.
>
> And the issue really is about trying to get massive wins, or at least
> large wins. These pay the freight for all the losers, slippage,
> commissions, etc. Without them, you will at best break even, at
> worst grind up your account over time.
>
> Yuki ^_^
>
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
>
>
>
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