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Dear Pondering Mark,
Is time frame traders choose correlated to the amount of trading capital?
If what we know (from the books) about "great" traders is true then - no.
There are traders with substantial capital that trade short term (on the
floor) and there are traders with large capital that trade long term (Mr.
Baffett).
The time frame (in my opinion) correlated with trading style, the trading
style correlated with so called "psychological" make up of the trader (the
"personality" of the trader) even nobody knows what it means. The trading
style also influenced by the "education of the trader" (how he/she get
started to trade and how he/she progress in it).
The capital of the trader is derivative of the trader's success. Trading
business is such that successful trader increase his/her capital very fast,
and if the success is "systematic" (result of the trading approach) as
opposite of the "luck" then capital stays large and continue to grow (in
slower pace, understandable). On the contrary, the trading capital
disappears with the speed of light if the trader received it through the
luck either in trading or in other walks of life (inheritance, sale of the
previous business, etc.)
There are a specific problems to each trading time frame and different size
of trading capital. Also the "betting success average" (number of times the
trader is "right") presents specific set of problems.
There is nothing more important in traders life then "money management" (or
give that field any other name). No amount of "greatness" (Jessy Livermore)
could save you without it.
Opinionated Alex.
At 11:21 AM 11/16/99 -0600, Mark Brown wrote:
> ... Do you think the correlation is between looser in the
> market and the time frames in which they follow? In other words do
> you think that smaller time frames observed = less money made? Do
> you think there are any correlations between the amount of money
> put to risk vs the amount of money made?
>
> I have observed the following samplings of data. Less money = less
> risk tolerated = less winners = faster depletion of trading capital
> = less experience = more obsession with every tick of data = more
> concern for commission cost = more enthusiasm for the passing new
> guru of the day = willingness to listen to the pro's warnings (who
> say this business is much harder than the magazines lead you to
> belive) only after the money's gone and the day job is back in
> everyday life.
>
>
>
>--
>
>.oİş°¨¨°şİ[ WWW.MARKBROWN.COM ]İş°¨¨°şİo.
>
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