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Hi Tugrul
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> From: Tugrul Cavusoglu <tugrul@xxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: Victor Niederhoffer
> Date: Thursday, October 30, 1997 4:47 PM
>
> Also, what this tells me: If someone as smart, who has spent many years
> as a pro trading the markets gets sliced like this.
> What o what kinda slice is the market saving for the much less
> experienced "speculators" ?
What I know of Victor comes from reading his book and I have to
say his attitude to risk management scared me.
To answer your question - returns are a trade off between
experience & knowledge on the one hand and the risk of return
on the other - i.e. given my state of knowledge and experience
can I aim for a "x"% return in return for "x"% probability of risk
of return?
So if you're an inexperienced trader aiming for a consistent 10% pa,
and well capitalised, then it is likely you will survive to the next
stage of success; on the other an inexperienced, undercapitalised
trader shooting for a 100% pa is probably not going to be around next
year. This statement assumes that your aims at least partially determine
your position size. In other words, a trader aiming for a 10% return will
trader much smaller size than someone aiming for a 100%.
regards
ray
R Barros
101/25 Market Street
Sydney NSW 2000
Australia
e-mail: ramon@xxxxxxxxx
tel: 61 2 92673470
fax: 61 2 92673478
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