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The Kod Unorthodox Strategy!

  • #21
  • Jun 18, 2008 10:54pm Jun 18, 2008 10:54pm
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.
  • #22
  • Jun 19, 2008 1:20am Jun 19, 2008 1:20am
Quoting dexholland
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.
You said " Let's say we long the gbpjpy; I using 10,000 contracts and you're using 50,000." ==> no, i don't mean this
And if you and i both have $5000, i'll invest all in one account, and you'll invest in 5 account(which mean every account invest $1000).

So if you trade $100 for every account, so total of your trade is 5 X $100 = $500
And i'll trade $500 in one account.
So whereever the price will go, our profit and loss will the same.

If you trade $50 per account(total $250), and i'll trade $250 in one account.
  • #23
  • Jun 19, 2008 1:29am Jun 19, 2008 1:29am
Quoting dexholland
If you went long gbpjpy via 10 accounts and profited $50 each using 5,000 contracts isn't that a heck of lot better than using 50,000 or 100,000 to get the same return? THINK MULTIPLE ACCOUNTS... Walmart does, McDonald's does, your Government does; it'll work for you also IF you let it.
Long gbpjpy via 10 accounts and profited $50 each using 5,000 contracts
So you use total 10 X 5,000 = 50,000 contracts.

Please don't make other confusing by connecting it with McDonald's, Wallmart, etc.

If McDonald's just build one store in NewYork, how many people will buy there?
If McDonald's build another store in Hongkong, so there are more people can buy McDonald's in total.

Multiple account and stores of McDonald's not relevant
  • #24
  • Jun 19, 2008 2:26am Jun 19, 2008 2:26am
You're missing the point!

You won't find 1 professional trader whom does everything from a sole account. They've got several accounts and they're all producing.

To myself each account is a business.

Production from many will always beat production from 1.

There's no 1 certain way, there're many ways to setup a structure involving multiple accounts. The other businesses I mention do indeed prove my point because my premise is that a single McDonald's store produces therefore the more stores addded increases overall production resulting in increased revenues.

I don't see McDonald's as you, I see each McDonald's as a production site... I could care less about what there're selling. The bottom line is the site is making money and they've got plenty of additional sites all over the World.

Think outside the box and ask yourself how can you also operate under the same principle which nearly all business operate.
  • #25
  • Jun 19, 2008 2:54am Jun 19, 2008 2:54am
Multiple accounts are for the emotional trader whom has a tendency to bail prematurely. Guess why they bail prematurely?

Fear. And guess Why?

Over-trading! (contracts too large compared to one's capital)

I believe if emotions are affecting execution it's because too much is on the table.

This subject matter is directed to the psychology of trading because people change when they're actually trading real money and it's this human nature I'm directing this subject matter to.

However, multiple accounts are used for far more other reasons than mentioned herein.

Day trading is very difficult to do on a consistent basis and there's plenty of reseach for those whom don't believe. I believe longer holding periods deliver bigger profits but feel most are turned away because of 2 reasons. Volatility and sudden market moving data releases.

For the newbie to exceed they must understand how to use a little to generate a lot instead of using a lot to get little. Many dream about the big payday large contracts deliver but I think more about the downside and capital preservation.

There'll be some whom understand this viewpoint and some won't but that's ok because we're all unique and that's life. And besides, there're many, many ways to become successful in investing.
  • #26
  • Jun 19, 2008 3:39am Jun 19, 2008 3:39am
Quoting dexholland
You're missing the point!

You won't find 1 professional trader whom does everything from a sole account. They've got several accounts and they're all producing.

To myself each account is a business.

Production from many will always beat production from 1.

There's no 1 certain way, there're many ways to setup a structure involving multiple accounts. The other businesses I mention do indeed prove my point because my premise is that a single McDonald's store produces therefore the more stores addded increases overall production resulting in increased revenues.

I don't see McDonald's as you, I see each McDonald's as a production site... I could care less about what there're selling. The bottom line is the site is making money and they've got plenty of additional sites all over the World.

Think outside the box and ask yourself how can you also operate under the same principle which nearly all business operate.
You make it round n round n round.
I you want to make it round n round n round, ok let's go for it, we make it more round n round, let's make it more confusing.

It's better to trade on multiple account because McD do it

And it's more better to trade on multiple broker.
  • #27
  • Jun 19, 2008 3:41am Jun 19, 2008 3:41am
Quoting dexholland
Multiple accounts are for the emotional trader whom has a tendency to bail prematurely. Guess why they bail prematurely?

Fear. And guess Why?

Over-trading! (contracts too large compared to one's capital)

I believe if emotions are affecting execution it's because too much is on the table.

This subject matter is directed to the psychology of trading because people change when they're actually trading real money and it's this human nature I'm directing this subject matter to.

However, multiple accounts are used for far more other reasons than mentioned herein.

Day trading is very difficult to do on a consistent basis and there's plenty of reseach for those whom don't believe. I believe longer holding periods deliver bigger profits but feel most are turned away because of 2 reasons. Volatility and sudden market moving data releases.

For the newbie to exceed they must understand how to use a little to generate a lot instead of using a lot to get little. Many dream about the big payday large contracts deliver but I think more about the downside and capital preservation.

There'll be some whom understand this viewpoint and some won't but that's ok because we're all unique and that's life. And besides, there're many, many ways to become successful in investing.
Do you know Amway, CNI, and another multilevel so success?
The key is multiple product, downline, and as you say multiple point of stock
So in forex we do the same, we do it with multiple broker and multiple account.
  • #28
  • Jun 19, 2008 3:43am Jun 19, 2008 3:43am
For dexholland,

You know about the power of multiple?

Yes, multiple defence is better then one defence
Multiple broker is better than one broker

Multiple broker better because of the diffrence of spread, fee, etc.
You must not be stress of spread, free, speed, so you must do multiple broker
  • #29
  • Jun 19, 2008 3:45am Jun 19, 2008 3:45am
For dexholland,

And another most powerful MULTIPLE is MULTIPLE PAIRS.
We must trade MULTIPLE PAIRS, MULTIPLE ACCOUNT, MULTIPLE TIMEFRAME, and MULTIPLE BROKER..


The powerful of MULTIPLE...MULTIPLE..MULTIPLE...
  • #30
  • Jun 19, 2008 1:17pm Jun 19, 2008 1:17pm
You're somewhat getting. I challenge myself and group to think outside the box and introduce components which work regardless of industry.

You say it's the several products. I say NO way!

"Stamps (1 sole producer) make the US Post Office millions and there're several other examples in business that prove this point. You've been taught to multiply by several currencies, stocks and etc. I believe multiplication can also ocurr with the same producer if one simply use the multiplication aspect just as businesses.

Taxes (another producer) is a central core of our government's money and other local agencies. VOLUME (MULTIPLICATION)

All I need is a single producer, I don't need numerous producers in my portfolio. I need numerous portfolios in order to utilize the power of volume or as you've put it MULTIPLES! (There's 2 different ways to multiply and I believe this is far more effective and far less demanding)

No one can dispute the power of what stamps and taxes produce by themselves so why can't a single currency or stock do the same... the truth is it can but one must think outside the box.

My holdings produce whether mini moves and/or mega moves are ocurring because of the volume (multiple) factor. Just like in sports; I stay with the hot play until it's stopped before moving on to another play.

If I can win with a single play why would I try other plays when I've got my opponent on the ropes.
  • #31
  • Jun 19, 2008 1:46pm Jun 19, 2008 1:46pm
This talk is crazy

$5000 is $5000 !!

It doesn't matter if it's in one account or spread over 1000
  • #32
  • Edited 4:48pm Jun 19, 2008 4:13pm | Edited 4:48pm
Or course it's crazy!

It's crazy to you because you don't understand.

There're those whom get it and those whom don't and that's expected as well as the criticism.
  • #33
  • Jun 19, 2008 6:26pm Jun 19, 2008 6:26pm
I think the point that dex is trying to make is: FEAR = big factor in trading.

What if we trade multiple accounts so we only trade 1/5 and that 5x (Sorry, but I can't trick my brain like that) If that works for you, great. However in theory this doesn't give any advantage, if we assume a normal functioning brain. You can't say to yourself: Oh this account is now -$50, but that doesn't effect my other account although price/entry/sl/tp are the same.

To the wall mart example: More stores means less funds availible/store = less profit/store. The money has to come from somewhere...
Happy Pip-hunt... KISSes
  • #34
  • Jun 19, 2008 6:57pm Jun 19, 2008 6:57pm
Quoting dexholland
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.
Seriously, you should stop trading until you get a basic grasp of 1st grade mathematics. And your risk analysis is so far off it's laughable. Thanks for the laugh though.
  • #35
  • Jun 19, 2008 9:03pm Jun 19, 2008 9:03pm
Quoting lesaurus
This talk is crazy

$5000 is $5000 !!

It doesn't matter if it's in one account or spread over 1000

Yes, you are right, $5000 is $5000
But you see dexholland want to make is round n round without make it clear and give us a clear example, dexholland just connect it with McD. It's not relevant.
So circumvent.
  • #36
  • Jun 19, 2008 9:04pm Jun 19, 2008 9:04pm
Quoting dexholland
Or course it's crazy!

It's crazy to you because you don't understand.

There're those whom get it and those whom don't and that's expected as well as the criticism.
Understand what? give a example in forex.
Don't just circumvent.
  • #37
  • Jun 19, 2008 9:08pm Jun 19, 2008 9:08pm
Quoting priest9
I think the point that dex is trying to make is: FEAR = big factor in trading.

What if we trade multiple accounts so we only trade 1/5 and that 5x (Sorry, but I can't trick my brain like that) If that works for you, great. However in theory this doesn't give any advantage, if we assume a normal functioning brain. You can't say to yourself: Oh this account is now -$50, but that doesn't effect my other account although price/entry/sl/tp are the same.

To the wall mart example: More stores means less funds availible/store = less profit/store. The money has to come from somewhere...
Yes, you are right.
Maybe dexholland want to tell us FEAR=big factor in trading
And the truth is :
1 X 1000 = 1000 equal to 1 contract X 1000 accounts = 1000 contracts

If dexholland want to tell us about FEAR, i suggest not only multiple account to him, i suggest multiple broker. Don't dexholland afraid when one broker get bankrupt?
  • #38
  • Jun 19, 2008 9:10pm Jun 19, 2008 9:10pm
Quoting Lonestar
Seriously, you should stop trading until you get a basic grasp of 1st grade mathematics. And your risk analysis is so far off it's laughable. Thanks for the laugh though.
Maybe dexholland want to tell us about the power of MULTIPLE...MULTIPLE...MULTIPLE...
Maybe after suggest us to multiple account, he will suggest us multiple broker, after that maybe suggest us multiple pairs.
  • #39
  • Jun 19, 2008 9:13pm Jun 19, 2008 9:13pm
It's ok for dexholland to tell us his idea or thought,we will thanks for it.
But if anyone give critic, input or thought, please answer or reply with relevant.

Don't round n round and make other confused by connect it with McD.
We know what you say about McD is true, but it's not relevant in multiple account in forex.
You can observe again.
  • #40
  • Jun 19, 2008 9:15pm Jun 19, 2008 9:15pm
If you reply with relevant, we all maybe can make another approach to make a better strategy to trade in forex. And we all can think out of box as you say.
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