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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: Steve Nelson who wrote (13930)	12/12/2000 5:55:44 PM
From: rgammon	Respond to of 18928

Steve, What you say is also true. As the size of our holdings increase, we also see wide swings in portfolio value, in spite of cash reserve. However, this is a different beast than plunking down $50,000 on a trade. When it comes to spending the money on a buy, or receiving that much on a sell, in our present state, we may well balk at the prospect. My point is that with the gradual increase in the trade size, assuming a constant 5% of equity being traded will push us closer to that $50,000 trade size so slowly that when we get there, we won't be appalled at the prospect. When $50,000 is the trade size, our equity values are liable to swing $100,000-$150,000 per day with the kind of swings we have seen so far this year. This is truely a sobering prospect, even though I know that when I get there, I won't react any more than I do now when I see a $30,000 portfolio value swing in one day. Robert