Hi Karelk,
I just woke up since my break from this thread so let me respond with my opinion for what it is worth...
I 'used' to think exactly the same way in terms of booking profits in my early years of trading. The net result of the two scenarios is exactly the same if you ignore the spreads. The only difference (atleast to me) was the phycological effect on trader's mind. Having a large unrealized profit with positions at BE will do wonders and help you sleep better at night when compared to a large account balance with equally large unrealized loss. Account Balance is just a number so to speak. It's the floating equity in your account that really matters as it determines your buying/selling power and available margin.
hope this helps.
I just woke up since my break from this thread so let me respond with my opinion for what it is worth...
I 'used' to think exactly the same way in terms of booking profits in my early years of trading. The net result of the two scenarios is exactly the same if you ignore the spreads. The only difference (atleast to me) was the phycological effect on trader's mind. Having a large unrealized profit with positions at BE will do wonders and help you sleep better at night when compared to a large account balance with equally large unrealized loss. Account Balance is just a number so to speak. It's the floating equity in your account that really matters as it determines your buying/selling power and available margin.
hope this helps.
DislikedI cannot yet send private messages so I hope Graeme will come to read this, or someone could forward it to him.
Graeme,
I started to read the thread fairly late - probably after you left few weeks ago...Ignored
Staying in my lane...