Trading one large account versus several smaller ones.

Let’s say I have 100k. Span margin. Futures an futures options only. Why do I sense based on limited experiments that I perform better with simultaneously purchasing and selling in four 25k accounts than the one 100k account. (Commission and fees not a factor.)

 

Maybe it's because subconsciously you discern that each individual account can lose only 25K, whereas the one big one can lose the whole 100K. Your mind is psyching you out, which is why B1S2 would say you need PRM™.

 

I never thought about it that way, but it makes sense

 

seems inefficient.

you miss out on aggregate margin (if the future has a margin of 20k, you can only trade 4 instead of 5.

you are more likely to make an error (4x as likely)

And bookeeping is 5x more complicated (each account plus aggregate)

 

PRM?

 

Prudent Risk Management

 

Now, see, just last week I had a conversation with someone in my office, and I argrued that when it comes to buy-and-hold stocks and dividends, that it does not matter whether a stock or ETF pays a dividend quarterly or monthly...

I don't care whether we get a check for $10 each month or a check for $30 every three months. It's the same dividend, right?

But now you are undermining that argument

WTF

 

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MORE than one location could be common sense;
especially if on on them as a hi crime location like chicago.....

 

Using multiple accounts could provide a psychological advantage by separating trades and reducing the pressure of handling a large capital sum.

 

Also, when you trade multiple accounts, with different brokers, you diversify your risk if one broker runs into trouble.