Very correct. if you have a well defined quantitaive system with risk rules and position size rules, the 'system does not and should not care whether you trade 1 million shares or a 1 lot. Of course this assumes that your system has made allowances for slippage and market capacity/liquidity. Psychology is only a factor for discretionary traders or for pseudo-systematic traders (systematic traders who constantly second-guess the system).
Well we know this to be total bunch of bunk, if it where true Richard Dennis and many of the other Turtles would still be around today and not selling software and videos. Trading is and must always be some what discretionary .... If it wasn't there would be no people in the large institutions trading rooms, it would just be all computers !!! The plane can fly on auto pilot but there always must be a pilot... That is where the no limit theory breaks down because we are back to emotion.
I firmly beleive that position sizing huge. If we are "smart' about how and when we size up or down, realtive to our own strategy, we can handle the larger sizes. For me, position sizing is all about managing the risk. To each trader it means something different becasue we are trading different plans. I am well aware of what can happen to your logic when the size increases. If you have a plan I believe that focusing on the cents per trade, not the P/L on the trade is the way to handle the risk on a psychological level. While I agree with you that a methodical approach to increasing size is a smart thing to do...I also believe that for some it will take a lot longer to be mentally prepared to size up. Reluctance to changing your size can be a good thing if it is based on the risks involved(or lack of) or it could just be keeping you safe on a psychological level. Balance is key for me. Afterall, we as traders are pretty much just risk managers. Rule #1 MANAGE THE RISK
Hallo Herr Lueti, können Sie mir bitte genaueres über das Procedere des zu managenden Vermögens sagen. Meine e-mail Adresse lautet: ggemg@aol.com Vielen Dank im Voraus gg
Hmm, You want me te make 2.5 millions? OK, 0.25 for you, 2.25 for me. Any further questions? nononsense