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100$ alone or 1000$ ten people?

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cheinvest
738
cheinvest  

 Hey,

I'm wondering what you guy think about this. Is there any difference between a guy trading 100$ or 10 guys trading together 1000$ ( we presume that each one got into the pool with 100$). How can they get some leverage over the guy trading alone? Is there any way that in the forex world more people associated could have some advantage over the guy trading alone? Beside that 10 people ideas and analyses are better than 1 guy is there anything else they can achieve by working together and having a bigger budget?

  Cheers

Simon Gniadkowski
Moderator
18004
Simon Gniadkowski  
cheinvest:

 Hey,

I'm wondering what you guy think about this. Is there any difference between a guy trading 100$ or 10 guys trading together 1000$ ( we presume that each one got into the pool with 100$). How can they get some leverage over the guy trading alone? Is there any way that in the forex world more people associated could have some advantage over the guy trading alone? Beside that 10 people ideas and analyses are better than 1 guy is there anything else they can achieve by working together and having a bigger budget?

If you are using fixed lots,  no . . .  if you are trading properly then yes,  it's easier to find a trade that you can trade with a $1000 rather than $100.
Bacha Rehman
4495
Bacha Rehman  
cheinvest:

 Hey,

I'm wondering what you guy think about this. Is there any difference between a guy trading 100$ or 10 guys trading together 1000$ ( we presume that each one got into the pool with 100$). How can they get some leverage over the guy trading alone? Is there any way that in the forex world more people associated could have some advantage over the guy trading alone? Beside that 10 people ideas and analyses are better than 1 guy is there anything else they can achieve by working together and having a bigger budget?

  Cheers

"Beside that 10 people ideas and analyses are better than 1 guy"

Who told you this? ... I never believe this statement ... One good strategies can bypass even 10000000000000 ideas if it works well

cheinvest
738
cheinvest  

Probability for 10 people to outsmart 1 guy is obviously larger but of course the situation you describe it's possible.

Though, through my question I'm trying to discover if there could be any advantage coming from the fact that the group has more money available... how could they benefit from it even if let's say, they have same strategy with the single guy...

Anton Nel
37716
Anton Nel  

Depends on strategies. One of strategies I know - it requires a large group like big boys (e.g. min. total deposit 1,000,000). They can generate more profit (e.g. ROI = 100% p.a. per shareholder) than the one who trades with 100 (e.g. 20% p.a.).

Alain Verleyen
Moderator
31203
Alain Verleyen  
cheinvest:

Probability for 10 people to outsmart 1 guy is obviously larger but of course the situation you describe it's possible.

Though, through my question I'm trying to discover if there could be any advantage coming from the fact that the group has more money available... how could they benefit from it even if let's say, they have same strategy with the single guy...

Of course it's beneficial to have more capital.

  • As RaptorUK said you can start some trade with 1000 you could not have with 100.
  • For a given trade, for example a volume of 0.01, you take 10 times less risk.
  • You can increase you profit (or losses) by trading 0.05 instead of 0.01 and still takes less risk (in % of your capital).
Ronnie Mansolillo
5529
Ronnie Mansolillo  

In Italy there is a joke that says: "two people together are few but three are already too many"

 

Another joke says: "better alone than in bad company" 

Anton Nel
37716
Anton Nel  
Rosiman:

In Italy there is a joke that says: "two people together are few but three are already too many"

 

Another joke says: "better alone than in bad company" 

Agree - I would rather to be alone than in bad company.
cheinvest
738
cheinvest  

Thanks for your inputs guys. 

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