I truly appreciate the response. Please allow me to elaborate further.
The reason why multiple accounts (stores) is far superior than a sole account (store) is simple. Let's say you and I both have $5,000 (trading capital) and you're trading from a sole account and I'm trading from 5 accounts.
Let's say we long the gbpjpy; I using 10,000 contracts and you're using 50,000.
Let's say we both bagged 50 pips. Our profit is same RIGHT!
(So what's my point)
You risked more... the focus is on risk THEN profits!
If our stops were placed back 50 pips (sometimes conservative for gbpjpy)
you risked $250 from a sole account while I risked $50. Better yet!
Let's say you're reluctant to throw in the towel and believe for whatever reason/s gbpjpy will turn-around in your favor (he's just volatile you say to yourself) how comfortable will you be during this process... not to mention your losses are steady accumulating well past $250 during this process.
Let's say during this process I also believe gbpjpy will turn-around and I want to hang on a little longer like yourself. But gbpjpy now goes 100 pips against us... now you're down $500 from a single account... I just losing $100
'WHICH ONE OF US NEVER SWEATED DURING THIS ENTIRE PROCESS?'
Emotions play a big role in trading; you not only want to be profitable; you also want to be comfortable... most traders aren't comfortable when trading.
If smaller can deliver without the stress (via multiple accounts) why not chose the less stressful path. (I didn't mention trades from a larger frame like daily or weekly because you surely wouldn't won't to stomach the long durations of volatility at 50,000 contracts on these frames from a sole account standing at $5,000.
As for McDonalds and the Wal-marts adding stores!
Why do they add?
Because more stores equal more revenue. Money coming in from multiple stores beats money coming in from a single store; that's why businesses place stores all over the place.
But keep in mind it cost them hundreds of thousands per store and your store
could only cost a few hundreds... so who can get a store up faster? YOU!
You can't beat this type of structure because the risk you have to take using one is greater and more stressful.
Now if one wants to take 50,000 contracts (sole account) up top on the daily or weekly where volatility are often times in hundreds they're more than welcome; I just prefer to go up top with contract sizes which allow me to sleep.
Traders are often correct but the sweating makes them bail far too soon!
BE YE COMFORTABLE! THERE'RE SEVERAL MORE BENEFITS TO OWNING AND TRADING FROM MULTIPLE ACCOUNTS BUT COMFORT IN MY OPINION, IS MOST APPRECIATED BENEFIT TO MYSELF.
The reason why multiple accounts (stores) is far superior than a sole account (store) is simple. Let's say you and I both have $5,000 (trading capital) and you're trading from a sole account and I'm trading from 5 accounts.
Let's say we long the gbpjpy; I using 10,000 contracts and you're using 50,000.
Let's say we both bagged 50 pips. Our profit is same RIGHT!
(So what's my point)
You risked more... the focus is on risk THEN profits!
If our stops were placed back 50 pips (sometimes conservative for gbpjpy)
you risked $250 from a sole account while I risked $50. Better yet!
Let's say you're reluctant to throw in the towel and believe for whatever reason/s gbpjpy will turn-around in your favor (he's just volatile you say to yourself) how comfortable will you be during this process... not to mention your losses are steady accumulating well past $250 during this process.
Let's say during this process I also believe gbpjpy will turn-around and I want to hang on a little longer like yourself. But gbpjpy now goes 100 pips against us... now you're down $500 from a single account... I just losing $100
'WHICH ONE OF US NEVER SWEATED DURING THIS ENTIRE PROCESS?'
Emotions play a big role in trading; you not only want to be profitable; you also want to be comfortable... most traders aren't comfortable when trading.
If smaller can deliver without the stress (via multiple accounts) why not chose the less stressful path. (I didn't mention trades from a larger frame like daily or weekly because you surely wouldn't won't to stomach the long durations of volatility at 50,000 contracts on these frames from a sole account standing at $5,000.
As for McDonalds and the Wal-marts adding stores!
Why do they add?
Because more stores equal more revenue. Money coming in from multiple stores beats money coming in from a single store; that's why businesses place stores all over the place.
But keep in mind it cost them hundreds of thousands per store and your store
could only cost a few hundreds... so who can get a store up faster? YOU!
You can't beat this type of structure because the risk you have to take using one is greater and more stressful.
Now if one wants to take 50,000 contracts (sole account) up top on the daily or weekly where volatility are often times in hundreds they're more than welcome; I just prefer to go up top with contract sizes which allow me to sleep.
Traders are often correct but the sweating makes them bail far too soon!
BE YE COMFORTABLE! THERE'RE SEVERAL MORE BENEFITS TO OWNING AND TRADING FROM MULTIPLE ACCOUNTS BUT COMFORT IN MY OPINION, IS MOST APPRECIATED BENEFIT TO MYSELF.