|
PureBytes Links
Trading Reference Links
|
Regarding whether one in real life trading compounds or not it is my contention that EVERYONE trading stocks or MF's compounds in one way or another. (Futures because of the inherent leverage is a different ball game).
By this I mean if today you have $1mm in equity and you get a buy signal or a bunch of buy signals you invest your $1mm in one vehicle or you invest $10K each in potentially 100 vehicles i.e. you potentially get 100% invested. By the time you have grown that original $1mm to $2mm you are either investing your $2mm in one vehicle or you are investing $10K each in potentially 200 vehicles i.e. you potentially get 100% invested.
Isn't this the way we all invest/trade ? Are those that say they disdain compounding really saying that when they've grown their $1mm to $2mm that when they get a bunch of buy signals they are still investing only $1mm and leaving the other $1mm in money market ? If that's what you're doing then I'll take you at your word that you are not compounding and have accepted the fact that over time you will get declining returns on a percentage basis, but if you are potentially investing 100% even as equity grows then you are compounding. You may not be increasing bet size but you are compounding never the less.
Fred
--- In amibroker@xxxxxxxxxxxxxxx, "Bob Jagow" <bjagow@xxxx> wrote:
> Fred,
> Though I innately rebel at pyramiding, AB would afford me great pleasure by,
> as a 1st step, accepting subsequent buy signals that deserving
> tickers.triggered.
>
> Regards,
> Bob
Yahoo! Groups Sponsor
ADVERTISEMENT
Send BUG REPORTS to bugs@xxxxxxxxxxxxx
Send SUGGESTIONS to suggest@xxxxxxxxxxxxx
-----------------------------------------
Post AmiQuote-related messages ONLY to: amiquote@xxxxxxxxxxxxxxx
(Web page: http://groups.yahoo.com/group/amiquote/messages/)
--------------------------------------------
Check group FAQ at: http://groups.yahoo.com/group/amibroker/files/groupfaq.html
Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
|