Differences in strategy as your line increases?

Discussion in 'Trading' started by brigreene, Nov 18, 2002.

  1. brigreene



    I am not a professional trader, yet after earning a strong return over the past year and a half, I've seriously considered doing it full-time. I've interviewed w/ FNYS and Hold Brothers as a start, but am not sure I want to continue the interview process, the reason being that I believe trading is truly an individual game, and that any attempt to follow advice as they would want, would only screw me up.

    Using the return I've earned to date and extending it out over the next 5, 10, 20 yrs, etc., I've determined that I can still make a (small) fortune trading on my own.

    My main concern is this -- as my portfolio grows bigger and bigger, at what point will I not be able to trade as I currently do? That is, at what point will my account size be a hindrance?

    Right now, I hold anywhere between 0 and 8 positions. No matter how many positions I hold, I usually put in about 1/4 of my equity into each trade. Now, say in 10 yrs, I have amassed $10Million. Will trading $250k be as simple as it is for me know, when I trade about $2,500 for each position? Or is $250K still small enough where everything is pretty similar, only commission changes?

    Thanks for any advice and input in advance.
  2. What type of trader are you? For intraday scalpers, trading the same style gets harder as your capital increases due to problems in getting in and out quickly for size. If you're a swing or position trader with an outlook of days, months or years, then the same methodology should work regardless of capital size (unless you have hundreds of millions in buying power). Just make sure you're diversified and hedged if necessary.