Quote from osorico:
1) It is proven that small accounts, when coupled with sound risk management and a proven profitable strategy can achieve far greater percentage returns than those of multi-million/billion dollar accounts. There are many differences between the two different account types, not just value.
2) Yes, ES offers liquidity. But have you ever traded it? Firstly you need to realize because of ES tic (.25), 9 out of 10 times price will need to move through a limit price for fill. Now then, you come at ES with 1K size during a low velocity low ferocity period, whether market or limit you will affect the price. Yes, it will be absorbed, but how much at what price(s)? Applies to entry and exit. A small retail trader, say 50 or less contracts, has a much greater chance of a)getting filled at one price, entry and exit and b) can employ more types of strategies and styles dependant or independant of velocity and ferocity. Remember, not all strategies are based on volume or volatility expansion.
3) Of course realistic goals are important. But they need to be challenging. I'll wager that when Tiger was a young lad, his coaches did not say "go for par +18 on this course". Or "go for 100 yd drives on the front nine and 150 yds on the back nine.".
Osorico
