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>You run the risk of blowing out your account.
For the vast majority of people this is very true, but
consider: Richard Dennis started out with $700.... Different
times, and I know he gave a lot back, but still: $700 to $500,000,000 (or
whatever)?
BW
>From: Alexander <alexander@xxxxxxxxxxxxxxxxx>
>To: omega-list@xxxxxxxxxx
>Subject: Re: Under financed trader seeking solutions to trigger pulling
>issue
>Date: Thu, 18 Apr 2002 08:28:40 -0700 (PDT)
>
>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
>
>
>
>
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