FUTR: Day/Swing trading ACCOUNT SIZE

[CalaxCorp@xxxxxxx]

In a message dated 98-07-31 08:40:58 EDT, you write:

<< Subj:	Re: FUTR: Day/Swing trading
 From:	SP Broker1
  
  <<  Peter,
  Why is the larger the account size the better (assuming the same number of
contracts)?  Doesn't that mean one may end up losing more capital?
   Bill W>>>
 
 Hi Bill,
  The larger account size eliminates (to some degree) the "fear" factor of
trading with an undercapitalized account. It is very important for what goes
on in your head.
  Peter
 >>>>>>>

Peter,

Thank you for your explanation. 

(1)  I think for the "fear" above, you are talking about the "account size"
being the only trading capital available to the trader, therefore creating the
fear of "losing everything" and the resulting stress, affecting the trading
decision of the trader.  Right?

(2) What if there is other available risk funds, but it is just not in that
particular trading account at that momemt?  Would that mean then there would
be less "fear"?  That means the smaller account size is not a problem?

(3) Is the following another consideration--  If the "account size" is
adequate, so the broker would not have to monitor it so much, so that in case
there is a series of bad trades, the intraday/overnight drawdown would not
turn the account balance into a negative, forcing the broker to make a margin
call or to liquidate the losing position, thus giving the trade a chance to
recover back to profitability?

(4) So a large account size is good for the brokerage/clearing firm--less risk
and less work.  But is it actually good or bad for the trader if his fear is
not a factor?

Thanks in advance for any clarification.

Sincerely,
BillW