how large are your trading accounts?

Quote from wally_:

I will not disclose the units though...
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C'mon Wally! You didn't find my post funny? I did. You gotta lighten up! Did you know that Einstein was a shill? He really didn't exist, as a matter of not fact, he was a custodian in a high school.
 
I think that undercapitalization is one of the main reasons for the high failure rate among new traders. Think about this: If you only have a $10k account, even if you made a 300% return in one year (which for the vast majority of traders is highly unrealistic), you would only have made $30k for the year. If you are trading for a living, I think you need at least $50k unless you are trading prop or are trading some form of OPM...other people's money. Even then, the mortality rate is high. You need to have enough capital so that if you have several consecutive drawdown months, you will still be able to trade. In addition, you really need to have non-trading funds set aside to pay your bills for months where you lose or otherwise do not make enough to pay your living expenses. I may sound overly conservative here, but I think it's wise to have a 6-month emergency fund available of non-trading capital. If you are overly worried about HAVING to make huge returns every month just so you can pay the rent and buy food, you are destined to lose. Scared money never wins.

PEG LEG
 
Account size is a very important consideration when you decide to finally trade on your own. Not having to think about making money for a few months can really alleviate mental stress.
 
I don't think the literal size of account is what counts... its more like resources available at relatively short notice that should count... for example, if you are multiple contracts of ES, there is an opportunity cost of forgone opportunities to keeping the "correct" amount of capital in your account (if you are risking $1500 per trade with a Z% account risk, there is no need to keep 1500x100/Z% in your account, in my opinion)...

Perhaps the thread should expand the definition of "trading account" to include liquid reserves available for trading... such reserves could be usefully deployed elsewhere...
 
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