Well then you will have to find some way to cut your expenses if you want to grow your account faster, trading a bigger size relative to your account isn't the way to do it.
I am bored of small wins. Would it be dumb to risk more to make it rich?
- Thread starter Steven W
- Start date
Well then you will have to find some way to cut your expenses if you want to grow your account faster, trading a bigger size relative to your account isn't the way to do it.
I'm currently using 15k on a 400k account. I was thinking about trying 100k but will stick to 15k for now
or 3) it wouldn't scale to that level.
15K doesn't buy you that much stock, for example, only about 50 shares of SPY, if you don't use leverage. Unless you trade those low pricing stocks. You do swing/position trades?
Last edited:
Indeed I've done it, though I had the holy grail of all strategies and could do no wrong so scalled and kept scaling... then 24Aug15 came along and Puff, 2 years of profits and more gone in 20 minutes. You are either a newbie to trading still in the beginner's luck phase or just posting to boast because no-one can be consistent in all market conditions, if you think you are, then you haven't been in the game long enough to experience all market conditions.
Scaling can work until it doesn't, a black swan happens and markets turn on a dime, if you are in heavy, you loose heavy. 24Aug15 tough me to deploy only 10% of the capital, if your capital is $400k then deploy $40k but do it with diversification rather than just scaling. Scale only the positions that have a better risk/reward ration, keep the others small but also enter into different instruments simultaneously, and, always have some positions that inversely collerate with the main market.
As said, your post is just a boast exposing your wreckless inexperience, if you intend to become a successful trader then pay attention to above said.
Yep. Aug 2015 messed me up too, and started me on the path to better risk management. Funny how that works. I am thankful for that first major loss, because it caused me to think hard about the future(s) and I'm still here. Had I not had that lesson, I might have been be wiped out by now with the 2018 swings.
Yes, your portfolio variance decreases by the sqrt(N), but then again $40,000 doesn't get you a whole lot of N. Also, a lot of this portfolio theory and math goes out the window when correlation goes to 1 in a black swan event.
The OP was vague so the claim needs to be taken with a pinch of salt, never-the-less, if he is making $1k/day on a $15k capital deployment then one needs to assume leverage, in that case, deploying $40k can get a fair amount of N. But you're right, to be making the $millions the OP wants, and survive black swans, $400k available capital is not going to do it. To have big enough positions to make the money the OP wants, even a relative small flash crash as ocurred on 24Dec last needs 3 times the capital the OP has.
Last edited: