One word...Drawdown. Or should that be two words? Anyway, you know what I mean. One has to have deep enough pockets to overcome the inevitable trading storms along the way.
i am wasting my time. read the my post once again and if you don't figure out the relevance you have a problem.
OT, I have always regarded everyone who works for me as special and deserving of respect, no matter what their position and relationship to me. Never has this worked more for me than since I have invested into Argentina and Brazil where my approach is not common to say the least. In return, people go the extra mile, inform me of things and matters they would normally withhold and this information greatly increases the so called "edge" in business. Your Broker is your prime sub-contractor and as such you need each other. regards f9
And: after All the storms, a trader initially with deep pockets may no longer have enough Adequate capital anymore!
Another analysis here. Would it be possible that for some famous hedge-fund traders they might be not successful ones or, even worse, surviving ones in their trading life, if they didn't have enough OPM/ AUM to support them (even they knew for sure that their systems were very good ones) at the right time?
Ahhh I wondered when someone might resort to the delicate matter of OPM and fees. The solution to your question is off my radar I am afraid, as it involves FED/ Banks/ Swaps and a myriad of tricks that I have never heard of. I am only a lowly sole Trader who would never give his money to a stranger. However I am certain that there are learned ETers here who will be delighted to fill in the gaps. regards f9
Bingo. It's all about odds. The chances of a trader with a few grand reaching the Holy Land of Vince Chase are 1 in several thousand.
given the same ability in trading i'd put my money on the deeper pockets...so yes capital is most definitely critical to SUCCESSFUL trading...could there be an exception?? of course there could....but just as in any venture, chances of survival are tilted towards the deeper pockets....that does not infer that just cuz one has deep pockets they will prevail...
The simple answer is market cycles. It takes on average 7 years for a market cycle. You will continue to make mistakes during each learning phase of the cycle. What works today may not next month/ year. IF you have the capital then you can survive the 7 year learning curve. This is one of the main reasons I always scoof when some young hot shot shows up in ET with 20k days. I know it's usually just a matter of time before he hits a new market cycle and gives it all back.