Invest
Does account size matter?
By OT83  •  February 14, 2012
Does account size matter? Yes it does! Very often, we would say we earn a return of capital of example 6% after this trade of xxx days. This 6% seems simple but it is not exactly simple. 6% of 10k = 600 6% of 100k = 6000 6% of 1 mil = 60000 6% of 10 mil = 600000 = 600k ......and so on. DO you get the story? Two different investors may say that they have 6% gain, but their absolute gain is different. Investor A may have 100k in capital and earn 6000 in that trade. However, investor B may have 10 mil in capital and earn 600k gain for 6%. 600k - 6000 = 594000 which is much more than the capital of investor A. In extreme case, even if investor A manage to pick multibaggers and earn 100% in trade, it is only 100k as compared ......
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By OT83
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