buzzed not sure what yur smokin..but risking and losing 100% is way worse than risking and losiong 2 %, lol.. well said my azz.. p.s. if u idiots knew anythign about business you would see udnercapitalization ruins countelss numbers of businesses as well as traders.. duh Undercapitalization refers to any situation where a business cannot acquire the funds they need. An undercapitalized business may be one that cannot afford current operational expenses due to a lack of capital, which can trigger bankruptcy, may be one that is over-exposed to risk, or may be one that is financially sound but does not have the funds required to expand to meet market demand. hmm.. if udnrcapitalized and you get a margin call you are done..toast.. whereas if properly capitalized you can weather the storm... Trading a small (or under capitalized) account is much more difficult than trading a large account. Large accounts are buffered against mistakes, unexpected losing streaks, and sometimes even bad traders, but small accounts have no such buffer. Large accounts can be used to trade any available market, but small accounts can only be used to trade markets with low margin requirements and small tick values. Large accounts also allow more flexible trading (e.g. multiple contracts), whereas small accounts are very limited in the trade management strategies that they can use. http://daytrading.about.com/od/daytradingbasics/qt/SmallAccount.htm
About.com I used to like the website, until I started to learn cooking. Their recipes aren't that good. ExpertVillage isn't that good as well. I guess when it comes to cooking, nothing is like first hand experience. It is better to try out different things to see what works, what doesn't, and what are the MAJOR ASSUMPTIONS that those experts missed. PA
A lot more. Undercapitalized means that on certain occassions and for the same exact bet, an undercapitalized trader faces a high probability of ruin (liquidation) whereas a well-capitalized trader has a a very low probability of ruin and can maintain his expectancy.
"A fool and his money are soon parted." Contrary to beliefs aired in this thread, it is easier to build losses in a bigger capital sum account set up for trading in markets. It provides the latitude for mistaken or inadequate notions to govern trading decisions for longer. But a small capital account by definition limits itself to a small total loss on depletion of all its capital from losses. Usefully a small capital account introduces the player to the need for long and thorough preparation followed by prior testing (sim) of a suitable methodology where you must prove it to be robust and successful, before attempting live trading. If this is ignored, as is frequently demonstrated at ET, all you lose is your account (aka a small total loss).
Well said! I actually wanted to respond, but then, I figured there is no point in discussing trading with someone who quote wikipedia and about.com. This thread is just silliness! The mod might as well put this in Chit-Chat forum and let me post something fun. PA
i am trying to understand your stupidity.. i certainly cannot call it logic.. why would hedge funds or mutual funds continue to get alrger and larger.. oh yes .. i forgot . 6 billion in one hedge fund or hmmm 6,000 1 million dollar hedge funds... give me a break.. you guys are serious comedy relief! http://www.nytimes.com/2009/03/25/business/25hedge.html what top hedge fund managrs earned 1.4 trillion total in 6000 total hedge funds... hmmm this would be better if only there were 1.4 billion hedge funds with a thousand dollars in them each.. wow... 1 hedge fund for every 5 people on earth.. yeah that is what you guys are saying.. seriously take this to goldman and see what they say... reatarded.. Hell Since you guys do not seem to understand simple math or business lets aply this to a biological ecosystem.. say a coral reef. Would rather be in a school with 10 of the same kind of fish or a school of 1 million.. sure 10 can hide easier, but 999,990 fish can get killed and you ar still as large as the ten fish.. survivability is much easier in a large school of fish.. ever ehard of too big too fail.. seriously.. u guys have absolutely nop clue about trading or business.. I fully expect to read about a few of you in teh DARWIN AWARDS
Mod, please move this to Chit-Chat. Look at the quote above and you'll see it's one of the finest crapolas around. Thanks! PA
serioulsy pension you french putrid smelly person... it was your idea.. you said smaller accounts are better than larger ones.. why do you keep askign the MOD to do things.. you are not ten years old anymore .. screaming mommy mommy.. or.. maybe you are! ... what a lil baby you are.. GOO GOO GA GA .. doesbaby need some milk or his dirty diaper changed?
Hmmmm when did I said a smaller account is better than a large one? You are full of sh....aving cream, be nice and clean, shave everyday and you'll always look clean.