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>BTW: Just out of curiousity, how is Richard doing now?
I'm not sure, I heard he blew out, but then was back in
the top 10 CTAs not so long ago..... I don't
think it's "easy" for anyone.
BW
>From: Alexander <alexander@xxxxxxxxxxxxxxxxx>
>To: Bill Wynne <tradewynne@xxxxxxxxxxx>, omega-list@xxxxxxxxxx
>Subject: Re: Under financed trader seeking solutions to trigger pulling
>issue
>Date: Thu, 18 Apr 2002 09:13:21 -0700 (PDT)
>
>Ah, if only I could be a consistently three-sigma trader...
>
>And there's the rub. For me at least. I keep thinking I can consistently
>pull
>off "tail events" at will just because one person, or even ten people out
>of
>two million did it. (Fooled by Randomness, by Taleb).
>
>BTW: Just out of curiousity, how is Richard doing now?
>
>alexander the hopeful
>
>
>--- Bill Wynne <tradewynne@xxxxxxxxxxx> wrote:
> > >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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