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Norman,
For someone of your experience I'm surprised you would say this...anyone
who understands markets trading risk and possibilities knows your wrong.
Can you tell me which studies show that short term trading lead to
greater risk? I'd be interested to see how well based they are. I have
little doubt though they are based on shaky foundations.
You say each time you take a trade you take a risk...and yet you then go
onto say that holding a position is less risky even though your actually
in the market for longer? There is a contradiction here.
Then you completely change the whole scenario. Who on this list has the
capital 1/1000 the size of George Soros? You'd have to be an imbecile
to suggest he could trade all his capital on short term moves....please
tell me your not an imbecile Norman. Purely by his size he is FORCED to
trade the bigger move.....wow..hardly earth shattering news there.
This does NOT though invalidate the principle that small to medium sized
players can't jump in and out in short term moves and in fact control
their risk to an even greater extent by doing so. It has already been
well established time and time again for example that small equity fund
managers outperform large equity fund managers....once again..hardly
earth shattering news.
Yes...BIG money is made by riding BIG moves....that includes big money
as in LARGE $$ amounts and also in relation to capital...but even larger
amounts are made when you trade short term moves and compound those
profits many times over in a year. A ST trader can make 100%+ regularly
on his capital working full time in the markets....an investor
cannot....not consistently. These are simple facts...based in reality
and logic and maths...nothing complicated. Yes...it does create more
brokerage..but brokerage rates are only a factor to the very shortest of
term traders. Slippage is far more important. These are facts..once
which you MUST know Norman as haven you been trading markets for over 20
years??
Adrian
>
> Jim,
>
> I was going to stay out of this until your last statement ".
> The real value of Hurst's work is to show that profits are >
> maximized by short term trading." Most of the studies I have
> seen indicate that the more you trade the greater your risk
> of ruin. Each time you trade you take a risk. The more you
> trade, the greater the risk. Very few of the really big
> traders - investors such as George Soros or Warren Buffett
> made their money doing alot of short term trades. The big
> money is made riding the big moves and not getting in and
> out. Some of the saviest traders I met during my Chicago days
> made their big money on a few big moves. The short term
> trading was just rent money. I propose to ammend the above
> statement to read, "...that brokers profits are maximized by
> short term trading."
>
> Regards,
>
> Norman
>
>
>
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