|
PureBytes Links
Trading Reference Links
|
This is certainly one of the more interesting threads in quite some time! I
really appreciate everyone's insights, experiences and lessons.
Bluntly put, there is only one solution to being under financed. Don't trade.
Banks won't let you open a business loan unless it is enough for you to
succeed. EVERY trading book says that you need enough money based on some
simple math. Don't risk more than 2%/3% of a trading account on each trade and
don't trade more than a quarter of your account in initial margin. I've done
Monte Carlo simulation spreadsheets using even high percentage correct systems
and it's true. You run the risk of blowing out your account. You might as well
just send me your money, I will donate it to a monastery, you will gather great
merit and avoid the pain of losing the money yourself.
Psychologically speaking bluntly again, too small an account instills fear.
That fear will manifest and become true out of fixating on it. From my
experience, lots and lots of little losses with too tight a stop. Whittles my
account to nothing and with each little loss my fear gets more intense.
Was it Oscar Wilde or Jung that said, "We always become the thing we fear the
most."
alexander the fear-expert
|